Scotus decides: can the government be held liable for issues related to fair credit reporting?

_DEP’T OF AGRIC. RURAL DEV. RURAL HOUS. SERV. V. KIRTZ._, NO. 22-846, 46 F.4TH 159 (3D CIR. 2022), _cert. granted_, 2023 WL 4065594 (June 20, 2023). Oral argument scheduled for Nov. 6, 2023.

ISSUE: _Whether the civil liability provisions of the Fair Credit Reporting Act unequivocally and unambiguously waive the sovereign immunity of the United States._ Like many people in the

U.S., Reginald Kirtz took out both student and housing loans. _See __KIRTZ V. TRANS UNION LLC_, 46 F.4TH 159, 162–63 (3D CIR. 2022). In 2018, he paid off both of those loans and his accounts

were closed with a balance of zero. _Id. _at 163._ _Nonetheless, the Pennsylvania Higher Education Assistance Agency (“AES”) and the U.S. Department of Agriculture’s Rural Housing Service

(“USDA”) continued to report the status of his accounts as overdue. _Id. _According to Kirtz, this damaged his credit report with Trans Union LLC (“Trans Union”) and, in turn, lowered his

credit score. _Id. _Kirtz disputed the accuracy of the overdue reports in a letter to Trans Union. _Id._ Trans Union then notified both AES and the USDA of the disputed information._ Id.

_Kirtz sued Trans Union, AES, and the USDA, alleging that neither AES nor the USDA investigated or corrected the disputed information as required by the Fair Credit Reporting Act (“FCRA”).

_Id_.  The FCRA was enacted to “ensure fair and accurate credit reporting, promote efficiency in the banking system, and protect consumer privacy.” _Id. _at 162 (3d Cir. 2022) (citing_

__SAFECO INS. CO. OF AM. V. BURR_, 551 U.S. 47, 52 (2007)). In 1996, Congress amended the FCRA, expanding its reach to authorize suits against “any person” who fails to comply with “any

requirement” under the FCRA. _Id._ While it is unquestionable that the FCRA requires that disputed information provided to a credit reporting agency be investigated and corrected, the

question before the Court is whether Congress intended, when making the amendment, to include the government in the term “any _person_.” _See _46 F.4th at 163. The FCRA defines the term

“person” to include “any individual, . . . government or governmental subdivision or agency.” 15 U.S.C. § 1681(B). Nonetheless, the USDA filed a motion to dismiss claiming they are immune

from liability and thus should not count as a person, as defined under the FCRA._ _46 F.4th at 163._ _The doctrine of sovereign immunity means that the United States government cannot be

sued unless Congress has chosen to waive the immunity. _U.S. V. MITCHELL_, 463 U.S. 206, 212 (1983).  The district court granted the USDA’s motion to dismiss, finding that it would be

“implausible” for the federal government to be sued under the FCRA. 46 F.4th at 162._ _Kirtz appealed this decision to the Third Circuit. _Id. _