Thompson v. San Antonio Retail Merchants Association

The San Antonio Retail Merchants Association (association) (defendant) provided credit reports to business subscribers. To do so, the association used a computer system that received inputs of certain information and matched it to identifying information. The computer operator had to accept a given information file as related to a particular person. William Daniel Thompson Jr. had a bad credit incident, which was entered into the association’s computer system. But the information was entered without an attendant Social Security number. That file was later mistakenly associated with William Douglas Thompson III (plaintiff). Thompson III later tried to obtain credit from a business. The business ran a credit check on Thompson III using the association’s computer system, and as a result of the incorrectly attributed credit information, denied his request. Thompson III later learned of the wrongly attributed adverse information. Thompson III went to the business at which the bad credit incident occurred, and the business acknowledged that the incident occurred with Thompson Jr. Thompson III then brought this information to the association. Eventually, Thompson III sued the association for violating the Fair Credit Reporting Act (FCRA). The case went to a bench trial. Evidence established that the association did not conduct audits to ensure the accuracy of Social Security numbers associated with reports, which a manager explained was the single most important information in a file. Thompson III also presented evidence that he suffered humiliation and embarrassment from being denied credit and that his family also suffered. The district court awarded Thompson III actual damages and attorney’s fees. The association appealed, challenging liability and damages.