Fourth Circuit Expands Consumer Protections Under the FCRA

In a significant win for consumers, the U.S. Court of Appeals for the Fourth Circuit recently ruled that companies reporting information to credit bureaus—known as “furnishers”—can be held accountable under the Fair Credit Reporting Act (FCRA) for failing to investigate disputes that involve both legal and factual issues, as long as the disputed information is objectively and readily verifiable.

The case, Roberts v. Carter-Young, involved a woman named Shelby Roberts who discovered a $791 debt on her credit report from a former landlord. She believed the charge was unfair and repeatedly disputed it with the credit bureaus. The debt was being reported by a collection agency, Carter-Young, which recertified the debt without investigating her dispute. The presence of this debt on her credit report affected her ability to secure housing.

Roberts eventually reached a settlement with her former landlord, who agreed the debt should be removed. However, she also sued Carter-Young for failing to conduct a reasonable investigation as required under the FCRA. The lower court dismissed her case, claiming that her dispute was “legal” in nature and not covered by the FCRA’s investigation requirements.

The Fourth Circuit disagreed. It ruled that consumers can bring claims involving legal or factual disputes—so long as the dispute is based on information that is clear and verifiable without needing a court to decide complex legal issues. The case has now been sent back to the lower court to determine whether Carter-Young violated the FCRA by ignoring Roberts’ dispute.

What This Means for Consumers

This decision strengthens consumer rights in the Fourth Circuit (which includes Maryland, Virginia, West Virginia, North Carolina, and South Carolina). It makes clear that furnishers like collection agencies and lenders must take consumer disputes seriously—even when there’s a legal element involved—if the underlying information can be easily verified.

If you’ve disputed incorrect information on your credit report and the company responsible failed to conduct a proper investigation, you may have a case under the FCRA. Our firm has decades of experience holding furnishers and credit bureaus accountable for credit reporting errors.

Contact us today for a free case review and learn how we can help you protect your rights and your financial future.

Full article available at The Legal Intelligencer