Bill > HR5775

This bill amends the Fair Credit Reporting Act (FCRA) to modify civil liability requirements for class action lawsuits against credit reporting entities that fail to comply with the law, either willfully or negligently. For willful noncompliance, the bill caps total class action damages at the lesser of $500,000 or 1% of the defendant's net worth, and limits attorney's fees to no more than $100,000 or 40% of awarded damages. For negligent noncompliance, the bill similarly restricts total class recovery and attorney's fees. The bill also removes the requirement for a minimum damage amount per class member and sets individual damage caps at $100,000 or 40% of actual damages. These changes aim to harmonize and limit potential financial penalties for credit reporting agencies in class action lawsuits, potentially making such legal actions less financially burdensome for businesses while still providing a mechanism for consumers to seek redress for credit reporting violations.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/5775/all-info