Third Circuit Affirms Application Of "Reasonable Reader" Test Under FCRA

Highlights

• The U.S. Court of Appeals for the Third Circuit recently decided on an issue common in cases against consumer reporting agencies addressing how to evaluate whether certain reporting is accurate and/or materially misleading.
• In rendering its decision, the Court affirmed the application of an objective standard requiring consideration of how a "reasonable reader" would interpret information in a consumer report and that reports should be read as a whole.

The U.S. Court of Appeals for the Third Circuit recently rendered a decision on a common issue in cases against consumer reporting agencies (and furnishers) under the Fair Credit Reporting Act, 15 U.S.C. Section 1681 et seq. (FCRA): how to evaluate whether certain reporting is accurate and/or materially misleading. The Court affirmed application of an objective standard, requiring consideration how a "reasonable reader" of the consumer report would interpret the reporting.