A Look At Spokeo's Impact On Consumer Financial Litigation

In May of 2016, the United States Supreme Court issued a game changing decision with an immediate impact on consumer financial litigation cases. Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1547, (2016) ("Spokeo"). The decision provides a significant barrier to plaintiffs seeking class certification of Fair Credit Reporting Act ("FCRA") and Fair Debt Collection Practices Act ("FDCPA") claims because under Spokeo, a claim of a mere statutory violation of the FDCPA or the FCRA is insufficient to demonstrate Article III standing. Instead, plaintiffs need to contend with the argument that the class representative plaintiff will be unable to demonstrate concrete harm, thereby potentially rendering the putative class action complaint subject to dismissal. In the last several months, following the directive in Spokeo, courts have dismissed putative class action complaints after finding the named plaintiffs lacked Article III standing.