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Loudermilk Introduces Bill to Bring Consistency to Consumer Laws

Rep. Loudermilk (R-GA) introduced legislation to curb abuses in the court system and bring consistency to our nation’s consumer financial protection laws. He issued the following statement:

“As a small business owner for over twenty years, I was fortunate enough to never face a lawsuit. However, some of my customers and suppliers were often tangled in litigation from frivolous claims that cost them a significant amount of time and money. I have seen how a small technical error, turned into a lawsuit, can affect everyone in a business, including employees, customers, and vendors. Unfortunately, suits under the Fair Credit Reporting Act have skyrocketed in recent years while leaving consumers inappropriately compensated.

“When employers have to spend their time and effort defending themselves from frivolous lawsuits, job creation remains sluggish and Americans’ paychecks become stagnant. This is unacceptable after the lackluster growth of the last eight years. My bill protects both consumers and businesses by bringing liability under the Fair Credit Reporting Act in line with other consumer financial protection laws. This bill protects the right of consumers to pursue statutory damages and the right to just compensation for actual harm while establishing caps on class action suits.”


The FCRA Liability Harmonization Act, H.R. 2359, will cap class action damages and eliminate punitive damages to align the Fair Credit Reporting Act with numerous other consumer protection laws already in place (i.e.: Truth in Lending Act, the Fair Debt Collection Practices Act, the Equal Credit Opportunity Act, and the Electronic Funds Transfer Act) without impacting any actual damages or relief that may be obtained by consumers.

Groups in support of this legislation: U.S. Chamber Institute for Legal Reform, U.S. Chamber of Commerce, American Bankers Association, Consumer Bankers Association, Financial Services Roundtable, Credit Union National Association, Retail Industry Leaders Association, International Franchise Association, Electronic Transactions Association, American Financial Services Association, National Association of Professional Background Screeners, Software and Information Industry Association, National Automobile Dealers Association, and Consumer Data Industry Association.

Cosponsors of this legislation: Rep. Ed Royce (R-CA), Rep. Ted Budd (R-NC), Rep. Peter King (R-NY), and Rep. Ann Wagner (R-MO).