If the consumer credit report requests fail to comply with §604 of the Act, what are the penalties for violation?
If the consumer credit report requests fail to comply with §604 of the Act, what are the penalties for violation?
The penalties for violating the FCRA are governed by several different sections of the statute, and the applicability of a particular section depends on such factors as who brings the action and the degree of the violator's noncompliance.
For example, Sections 616 and 617 impose liability for willful noncompliance and negligent noncompliance, respectively. The monetary penalties mandated by these two sections include actual damages proven by a consumer, plus costs and attorneys fees in each such case.
In the case of willful violations, the court may also award punitive damages to a consumer. Any person who procures a consumer report under false pretenses, or knowingly without a permissible purpose, is liable for $1000 or actual damages (whichever is greater) to both the consumer and to the consumer reporting agency from which the report is procured. Also, Section 621 governs enforcement actions brought by the Commission, other agencies, and the states, and provides for various monetary and injunctive penalties. The potential monetary penalties include, for those who knowingly violate the FCRA, up to $2500 per violation in a civil action brought by the Commission in district court.
I hope this information is helpful to you. The views expressed herein are those of the staff and do not necessarily reflect the views of the Commission or of any individual Commissioner.
Sincerely,
Kellie A. Cosgrove
Attorney
Bureau of Consumer Protection
Division of Financial Practices October 27, 1998
For example, Sections 616 and 617 impose liability for willful noncompliance and negligent noncompliance, respectively. The monetary penalties mandated by these two sections include actual damages proven by a consumer, plus costs and attorneys fees in each such case.
In the case of willful violations, the court may also award punitive damages to a consumer. Any person who procures a consumer report under false pretenses, or knowingly without a permissible purpose, is liable for $1000 or actual damages (whichever is greater) to both the consumer and to the consumer reporting agency from which the report is procured. Also, Section 621 governs enforcement actions brought by the Commission, other agencies, and the states, and provides for various monetary and injunctive penalties. The potential monetary penalties include, for those who knowingly violate the FCRA, up to $2500 per violation in a civil action brought by the Commission in district court.
I hope this information is helpful to you. The views expressed herein are those of the staff and do not necessarily reflect the views of the Commission or of any individual Commissioner.
Sincerely,
Kellie A. Cosgrove
Attorney
Bureau of Consumer Protection
Division of Financial Practices October 27, 1998