FCRA Liability Harmonization Act

Full Title:
FCRA Liability Harmonization Act

Summary#

This bill would change how courts award money in cases under the Fair Credit Reporting Act (FCRA). It sets numerical limits on damages and on court-awarded costs and attorney fees for both willful and negligent violations. For willful violations, statutory damages would be limited to the lesser of $100,000 or 40% of any damages the court awards. The bill adds a new class-action rule saying a court may not require a minimum dollar amount for each class member and that total recovery for the class (excluding attorney fees) cannot exceed the lesser of $500,000 or 1% of the defendant’s net worth. It also limits costs and reasonable attorney fees in class actions to the lesser of $100,000, 40% of any damages awarded, or a calculated sum not to exceed the lower of $100,000 or 40% of actual damages. For negligent violations, it caps damages at the lesser of $100,000 or 40% of actual damages, and applies similar class-action caps: the class’s total recovery (excluding fees) may not exceed the lesser of $500,000 or 1% of net worth, and costs and attorney fees are limited as described above.

What it means for you#

  • If you are a consumer in an FCRA class action, the bill would place caps on how much the class can recover in total and on attorney fees. Courts would still determine actual damages but must apply the new caps.
  • If you are a company facing an FCRA suit, the bill would limit total liability in class actions with numeric caps (for example $500,000 or 1% of net worth) and limits on attorney fees and costs.
  • Courts retain authority to determine actual damages and reasonable fees but must apply the caps set by the bill.

Expenses#

No publicly available information on federal budgetary or spending effects. The bill text specifies monetary caps that affect private recoveries: $100,000 caps in several places; a $500,000 cap on total class recovery (excluding attorney fees); a 1 percent-of-net-worth cap on total class recovery; and limits tying some attorney-fee recoveries to 40 percent of damages.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.