Banking and Finance Law Daily Wrap Up, FAIR CREDIT REPORTING—Trades seek passage of FCRA reform legislation, (Dec 16, 2025)

By Charles A. Menke, J.D.

The FCRA Liability Harmonization Act would cap statutory damages in class actions, eliminate punitive damages, and limit attorney’s fees.

The American Fintech Council (AFC), together with several other national trade associations, have written to House leaders urging passage of legislation that would revise the civil liability provisions of the Fair Credit Reporting Act (FCRA). The FCRA Liability Harmonization Act (H.R. 5775), introduced by Rep. Barry Loudermilk (R-Ga.), would amend the FCRA’s civil liability requirements under the Fair Credit Reporting Act to cap class action damages, eliminate punitive damages, and limit attorney’s fees. Joining Loudermilk in introducing the bill were Reps. Ann Wagner (R-Mo.), Dan Meuser (R-Pa.), Bill Huizenga (R-Mich.), Young Kim (R-Calif.), and Scott Fitzgerald (R-Wis.).

“FCRA plays a critical role in protecting consumers and ensuring confidence in the financial system, but today’s litigation environment is increasingly driven by tactics that exploit loopholes rather than advance consumer interests,” said AFC CEO Phil Goldfeder, in a release. “Targeted reforms like those in the FCRA Liability Harmonization Act will curb abusive lawsuits, reduce uncertainty for businesses, and keep costs down for consumers – all while preserving every meaningful protection the law provides.”

In their letter to Reps. French Hill (R-Ark.), Chairman of the House Financial Services Committee, and Andy Barr (R-Ky.), Financial Institutions and Consumer Credit Subcommittee Chairman, the trades argued that the legislation would harmonize the FCRA with other consumer protection laws and “help curb abusive litigation practices while preserving strong consumer protections and an effective dispute resolution process.” The letter noted that other federal consumer protection laws establish reasonable liability limits, including the Equal Credit Opportunity Act, Electronic Fund Transfer Act, and Truth in Lending Act. “The FCRA is out of alignment with other consumer financial protection statutes by allowing class action plaintiffs to pursue unlimited damages - including punitive damages,” the organizations said. They further contended that “[t]he inconsistencies between FCRA and other Federal consumer laws have led to the filing of lawsuits with little or no actual injury, often based on novel legal theories.”

According to the trade organizations, “[t]he FCRA Liability Harmonization Act promotes fairness in FCRA class action litigation by establishing reasonable limits on liability while preserving the protections granted to consumers under the FCRA.” They added that “[t]he bill ensures that individuals harmed by FCRA violations can still receive appropriate compensation while ensuring that consumers will continue to have the right to file individual or class action lawsuits and recover fair and reasonable attorney’s fees and litigation costs.”

In addition to the AFC, the letter was signed by the Consumer Data Industry Association, American Bankers Association, U.S. Chamber of Commerce, Consumer Bankers Association, Electronic Transaction Association, Online Lenders Alliance, American Fintech Council, Professional Background Screening Association, America’s Credit Unions, National Independent Automobile Dealers Association, National Automobile Dealers Association, National Association Mutual Insurance Companies, Innovative Lending Platform Association, ACA International, and American Property Casualty Insurance Association.

Companies: ACA International; American Bankers Association; America’s Credit Unions; American Fintech Council; American Property Casualty Insurance Association; Consumer Bankers Association; Consumer Data Industry Association; Innovative Lending Platform Association; Online Lenders Alliance; Professional Background Screening Association; National Association Mutual Insurance Companies; National Automobile Dealers Association; National Independent Automobile Dealers Association; U.S. Chamber of Commerce

LegislativeActivity: BankingFinance BankingOperations ChecksElectronicTransfers ConsumerCredit EqualCreditOpportunity FedTracker FairCreditReporting FinTech TruthInLending