U.S. Supreme Court Ruling for Credit Bureaus

In a unanimous ruling the U.S. Supreme Court ruled that consumers who have been harmed by a violation of the Fair Credit Reporting Act have two years from the date of violation to bring suit. The case sets an important precedent for limiting credit bureau liability in the event of identity theft. The case involved a receptionist in a doctor's office. The receptionist had used a patient's records to apply for a credit card. After some time the patient discovered the impersonation and found that her credit record had been damaged. She sued TRW under the terms of the Fair Credit Reporting Act, saying that they had wrongfully allowed her credit records to be altered by the receptionist.

The date of the infraction had occurred more than two years before she brought suit. Under the terms of the FCRA, she would not have a right to sue. However, she argued that the date of the infraction should be taken as the date when she first discovered it. The Ninth U.S. Circuit Court of Appeals agreed with the plaintiff and ruled that the statute of limitations clock begins ticking on the date the infraction was discovered, not the date that it occurred. As noted, the U.S. Supreme Court did not agree, noting that consumers must share some responsibility for preventing identity theft by availing themselves of the option to inspect their credit files from time to time.