In the case of McGrath v. Credit Lenders Service Agency, Inc., a Pennsylvania district court has ruled that a company that provides reports based on a search of public records is a “consumer reporting agency” (CRA) as defined by the Fair Credit Reporting Act (FCRA). When the plaintiffs in the case applied to a bank for a loan to refinance their home mortgage, the bank engaged the Credit Lenders Service Agency (CLSA) to conduct public records search on the plaintiffs and provide a report. The report erroneously listed outstanding civil judgments against the plaintiffs, who claimed they contacted CLSA, which refused to investigate the alleged inaccuracies. CLSA was sued for violations of the FCRA by failing to follow reasonable procedures to assure maximum possible accuracy when preparing a consumer report and by failing to conduct a reasonable reinvestigation of the plaintiffs’ dispute.
