Crabtree v. Experian Information Solutions, Inc.

The Fair Credit Reporting Act (FCRA) prohibited consumer-reporting agencies (CRAs) from disclosing consumer-credit information except in enumerated circumstances. One circumstance was the provision of a list of consumers meeting specified criteria to a prospective lender. The disclosure of such prescreen lists was permissible only if the recipient lender offered credit or insurance to each of the consumers on the list. The provision reflected Congress’s conclusion that any negative impact of the limited disclosure was outweighed by the guaranteed offer of credit or insurance. Experian Information Solutions, Inc. (Experian) (defendant) was a CRA that compiled consumer information into credit reports and scores. Experian had a contract with Western Sierra (Western) that allowed Western to receive prescreen lists based on Experian data. The lists were compiled and provided via third parties, which was permissible under the FCRA. Experian terminated its contract with Western, effective November 18, 2011. However, a prescreen list containing Experian data reached Western on November 30, when it no longer had authority to receive the data. Neither company was aware of the mistake. Nearly five years later, a lawyer discovered the prescreen list. That lawyer came to represent Quentin Crabtree (plaintiff), one of the list’s named consumers, in a suit against Experian for violation of the FCRA. Crabtree admitted that he likely received an offer of credit from Western in 2011. He also admitted that he would not have acted on such an offer. Nevertheless, Crabtree argued that he had a viable claim because Experian technically engaged in an unauthorized release of his information in violation of the FCRA. The district court dismissed Crabtree’s claim, concluding that he lacked standing because any injury from Experian’s conduct was too remote and speculative. Crabtree appealed.