In the context of the Fair Credit Reporting Act, a consumer has no private right to action to sue a creditor for reporting inaccurate information to a credit reporting agency (CRA). A consumer does have a right to sue if the creditor fails to conduct a reasonable investigation and the inaccuracy is not corrected as a result, pursuant to 15 U.S.C. § 1681i(a)(2).

Does that imply a consumer can do the following?

  1. Dispute inaccuracy with CRA. CRA investigates
  2. Sue creditor for a violation of 15 U.S.C. § 1681s-2(b)(1)(A) and lose
  3. Dispute inaccuracy with CRA a second time, providing enough additional information to yield a reinvestigation. CRA re-investigates
  4. Sue creditor for a violation of 15 U.S.C. § 1681s-2(b)(1)(A) and win


The principle of Res Judicata prevents it - same parties, same facts, same legislation means that you should have brought all your claims at the same time.

It’s possible that a Henderson v Henderson cause of action estoppel may torpedo the second case from the outset. However, even if it doesn’t, issue estoppel applies to the finding that there was a “reasonable investigation” - that matter has been decided by a court and is not subject to reexamination.

  • Probably unclear from the original wording, but the key here is that a new investigation took place as a result of the dispute in (3). It's the failure to perform a reasonable investigation that is the subject of § 1681s-2(b), rather than the inaccuracy itself. So, at least in a somewhat technical sense, the facts did change. Mar 19 at 17:04

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.