Third Circuit Sides with Consumers in FCRA Dispute Against Nissan: What It Means for You

When you lease a car or take out a loan, you expect your credit report to reflect accurate information. Unfortunately, that doesn’t always happen—and when it doesn’t, the consequences can be serious. A recent decision by the U.S. Court of Appeals for the Third Circuit shows that consumers have rights under the Fair Credit Reporting Act (FCRA), and that companies can be held accountable for reporting inaccuracies.

The Case: Ritz v. Nissan

In Ritz v. Equifax Information Services, the plaintiffs, Michael and Andrew Ritz, returned a leased vehicle to Nissan on time—but without a required inspection. The dealership refused to accept the return, and Nissan began charging the Ritz brothers monthly fees for retaining the car. The brothers refused to pay, arguing they had met their obligations. Nevertheless, Nissan reported them as delinquent to the credit bureaus.

After disputing the negative reporting, the Ritz brothers sued under the FCRA, which requires companies that furnish credit information to conduct reasonable investigations of consumer disputes. A lower court initially dismissed the case, claiming the dispute was a legal disagreement, not a factual inaccuracy covered by the FCRA.

However, the Third Circuit reversed that decision. The court found that the plaintiffs had provided sufficient evidence that Nissan’s reporting was both inaccurate and the result of an unreasonable investigation. Notably, Nissan’s own internal documents showed the plaintiffs had no outstanding debt—and the delinquency persisted only due to a typographical error and Nissan’s refusal to correct it. The court found that to be reasonable an investigation must be what a reasonably prudent person would have done under the same circumstances.  Here, the court found that Nissan’s investigation did not meet this standard.

Why This Matters

This ruling reinforces an important principle: companies cannot ignore evidence that undermines the accuracy of what they report to credit bureaus. If a business reports something negative about you, they must reasonably investigate your dispute—even if they believe the issue involves a “legal question.” The Third Circuit emphasized that an investigation must be thorough and consider all available information, especially when the consumer provides documentation that something is wrong.

Your Rights Under the FCRA

The Fair Credit Reporting Act gives you the right to:

• Dispute inaccurate information on your credit report.
• Have the furnisher (like a lender or car dealership) investigate your dispute.
• Seek damages if a company fails to conduct a reasonable investigation or correct an error.

We Can Help

If you’ve found incorrect information on your credit report—such as a paid-off loan still listed as unpaid, or a debt you don’t owe—and the company refuses to fix it, you may have a claim under the FCRA.

Our law firm represents consumers in credit reporting disputes, and we’re here to help you hold companies accountable when they violate your rights.

Contact us today for a free consultation if you believe your credit report is inaccurate and the issue hasn’t been resolved after a dispute.