P RE CE DE NT I AL UN I TED STATES CO UR T OF A PP EALS F O R T H E T H IR D C IR C U IT

_____________ No. 08-2465 &08-2466

_____________ SANDRA CORTEZ , Appellant in 08-2465

v. T RA N S U N ION , LLC SANDRA CORTEZ
v. TRA NS U NI ON , LL C, Appellant in 08-2466
O n A p p e a l f

ro m th e U n ited S tate s D istric t C o u rt f o r th e E a ste rn D istric t o f P e n n sy lv a n ia ( C i v. N o. 05- cv- 5684) D i s t r i ctJ udge: H on. J ohn P. Ful l am A r gued: J une 11, 20092 Be f o r e : M c KE E , Ch i e f

J u d g e , HAR DI M AN a n d VAN ANT WER P E N, C i r cui tJ udges ( O pi ni on fi l ed: A ugus t13, 2010)

____________ Jam es A
. F ranci s ( ARG UED ) J ohn Soum i l as F r a n c i s & M a i l ma n , P . C. L and Ti t l e B ui l di ng, 19th Fl oor 100 Sout h B r oad St r eet Phi l adel phi a, Penns y l vani a 19110 C ouns el forA ppel l ant/ C r os s - A ppel l ee M ark E
. K ogan B ruce S. L uckman ( ARGUE D) T i m ot hyP. C r eec h Ko g a n , Tr i c h i o n & W e r t h e i me r , P . C. 1818 M arketSt r eet , 30t h Fl oor Phi l adel phi a, Penns y l vani a 19103 C ouns el forA ppel l ee/ C r os s - A ppel l ant

_____________ OP I NI ONA ddi t i onal l y , C or t ez appeal s the di s t r i ctcour t ’ s or der 1 r educi ng at t or ney ’ s fee s and cos t s . “W e r evi ew the r eas onabl enes s of an a w ar d of att orney ’ s fee s foran abus e of di s cr et i on. ” R o d e v . D e lla rc ip re te , 892 F. 2d 1177, 1182 ( 3d C i r . 1990)
. O urr evi ew of the r ecor d does nots uppor tthe c o n c lu sio n th a t th e d istric t co u rt a b u se d its d isc re tio n in r educi ng C or t ez’ s at t or ney ’ s fee s and cos t s . Fur t herm or e, there is no thing in C o rt ez ’s l im it ed d iscu ssion o f a tt o rne y ’s fee s and cos t s t o s uppor tan abus e of di s cr et i on. B ot h T r ans U ni on’ s and C or t ez’ s not i ce of appea l 2 onl ydi r ect l yr efe r ence the D i s t r i ctC our t ’ s M emora ndum and 3 _____________ M cK E E , C hi ef J udge. Sandr a C or t ez a ppeal s t he di s t r i ctcour t ’ s or derr emi t t i ng a j ur y ’ s puni t i ve damages aw ar d of $750, 000 t o $100, 000 on cl ai m s s he br oughtunderthe Fai rC r edi tR epor t i ng A ct (“FC R A ”), cod i fi ed at 15 U . S
. C
. §§ 16 81 -1681 x. In i t s cr oss- 1 appea l , T r ans U ni on, L L C appea l s t he di s t r i ctcour t ’ s or der deny i ng i t s m ot i on forj udgm entas a mat t erof l aw and r ej ect i ng T r ans U ni on’ s chal l enge t o t he j ury ’ s co m pens at orydamages
aw ard o f $ 5 0 , 0 0 0
. F o r th e re aso n s th a t f o ll o w , w e w il l aff

irm t he d i stri ctcou rt ’s orders
. 2J udgm entO r der( col l ect i vel yr efe r r ed t o as “M ayor der ”) ent er ed M ay1, 2008. H ow ever , i n t hei rbr i efs i ti s cl earthat b o th p arti es a re a lso a p p ea li n g the d istri ct co u rt ’s M emora ndum and O r derand O r der( col l ect i vel yr efe r r ed t o as “Sept emberor der ”) ent er ed Sept ember13, 2007. It is a re q u ire m e n t o f

F e d e ra l R u le o f

A p p e llate Pr ocedur e 3( c) ( 1) ( b) t hata not i ce of appea l “des i gnat e the j udgm ent , or der , orpartther eof be i ng appea l ed. ” “I f an appea l i s t aken onl yfr om a s peci fi ed j udgm ent , the courtdoes notacqui r e j ur i s di ct i on t o r evi ew ot herj udgm ent s not s peci fi ed orfai r l yi nferr ed bythe N ot i ce. ” Sul i m a v. Tobyhanna A r my D epot , 602 F. 3d 177, 184 ( 3d C i r . 2010) ( quot at i ons om i t t ed) ( ci t i ng E l f m an Mot ors , I

nc. v. C hr

ys l er C or p. , 567 F. 2d 1252, 1254 ( 3d C i r . 1977) )
. W e have p re v io u slyh e ld th a t b e c a u se “ o n lya f in a l ju d g m e n t o r o rd e r is a p p e a lab le, th e a p p e a l f ro m a f in a l ju d g m e n t d ra w s in ques t i on al l pr i ornon- fi nal or der s and rul i ngs w hi ch pr oduced t he j udgm ent . ” E l

f m an , 5 6 7 F . 2 d a t1 2 5 3
. Ad d i t i o n a l l y , we h av e h eld th at w e e x erc ise ap p ell ate jurisdicti o n o v er “ o rde rs that are n o t spe cified in the n o ti ce o f a p p ea l w h ere : ( 1 ) th ere i s a conn ect i on betw een the speci fi ed an d u nspecifi ed o rder s; (2 ) th e in ten tio n to a p p e a l th e u n sp e c if ied o rd e r is a p p a re n t; a n d (3 ) th e o p p o sin g p a rtyis n o t p re ju d ice d a n d h a s a f

u ll oppor tuni t yt o br i ef the i s s ues . ” P ol ons kiv. Trum p TajMahal A ssocs. , 1 3 7 F .3 d 1 3 9 , 1 4 4 (3 d C ir . 1 9 9 8 ). T he di s t r i ctcour t ’ s Sept emberor der : ( 1) deni ed Tra ns U ni on’ s m ot i on forj udgm entas a mat t erof l aw ; ( 2) deni ed T r ans U ni on’ s m ot i on fora new tr i al as t o l i abi l i t y ; ( 3) par t i al l ygr ant ed C or t ez’ s m ot i on forcouns el fee s and expens es ; and ( 4) gr ant ed Tra ns U ni on’ s m ot i on fora new tr ia l a s to d a m a g e s , u n le s s th e P la in tif f a c c e p te d a re m ittit u r. O n O ct ober12, 2007, C or t ez f i l ed a not i ce of

appea l i n w hi ch s h e a p p e a l e d t h e S e p t e mb e ro r d e r . On F e b ru a r y1 4 , 2 0 0 8 , we di s m i s s ed C or t ez’ s appea l forl ack of appel l at e j ur i s di ct i on 4b e c a u s e t h e S e p t e mb e ro r d e rwa s n o ta f i n a l j u d g me n t . On M ay1, 2008, t he di s t r i ctcour ti s s ued a f i nal j udgm ent . T he M ayor ders peci fi cal l yr efe r ence d t he Sept emberor derand t he di s t r i ctcour tj udge s t at ed thatthe fi nal j udgm entw as e n te re d a s a re s u lt o f

P la in tif f ’s a c c e p ta n c e o f

th e re m ittit u r. T he M ayor derent er ed j udgm enti n favorof Pl ai nt i ff a nd a w a rd e d h e r r e m itte d d a m a g e s , c o u n s e l f e e s , a n d c o s ts . I ti s cl earfr om thi s pr ocedur al hi s t orythatthe Sept emberor deri s “fa i r l yi nferr ed” byboth par t i es ’ not i ce of appea l
. C or t ez a t t empt ed t o appea l the Sept emberor der , but beca us e i tw as nota fi nal or der , s he w as unabl e t o do s o. T he fi nal j udgm entof M ay1, 2008 cannotbe under s t ood w i t hout th e S e p te m b e r o rd e r a n d is c le a rl ya p ro d u c t o f th a t o rd e r. Ad d i t i o n a l l y , t h e r e i s a c l e a rc o n n e c t i o n b e t we e n th e two or der s ; t he i nt ent i on t o appea l the Sept emberor deri s appar ent i n bot h par t i es ’ br i efs ; and nei t herpart yhas been pr ej udi ced a s e v id e n c e d b yth e ir in -d e p th b rie f in g o f th e iss u e s ra ise d in t he Sept emberor der
. H ence , w e have appel l at e j ur i s di ct i on o v e r b o th o rd e rs . 5

I . BA CK GR OUND A
. F ac tual H ist o ry Th i s di s p u t e b e g a n wh e n Co r t e z e n c o u n t e r e d p r o b l e ms
w ith a c re d it rep o rt th a t T ra n s U n io n se n t to a c a r d e a ler sh ip wh e r e s h e wa s t r y i n g t o p u r c h a s e a c a r . I ts t e mme d f r o m a T r ans U ni on pr oductcal l ed “O FA C A dvi s or ” t h at confus ed C or t ez’ s i dent i t yw i t h t he i dent i t yof s om eone w i t h a s i m i l ar
n am e w h o w as o n a l istco m p il ed b ythe T rea su ryD ep artm en t’ s6 O f f ic e o f F o re ig n A s s e ts C o n tr o l ( “ O F A C ” ). W e w i l l d i s c u s s the O FA C L i s tand Tra ns U ni on’ s r el at ed p r o d u c ti n g r e a t e rd e t a i l b e l o w. We n o t e n o w t h a tOF AC admi ni s t er s and enfor ces economi c and t r ade sa nct i ons bas ed on U .S . fo re ig n p o licya n d n a tio n a l se c u rityg o a ls a g a in st th re a ts to t he nat i onal s ecur i t y , for ei gn pol i cy , or economy of the U ni t ed S t at es. T ho se sanct i on s a re ai m ed at s pecifi c regi m es, i ndi vi dual s t houghtt o be te r r or i s t s , i nt ernat i onal nar cot i cs t r aff i cker s , as w el l as per s ons i nvol ved i n act i vi t i es r el at ed t o the p ro life ra tio n o f “ w e a p o n s o f m a s s d e s tr u c tio n .” ht tp: //w w w . t r eas . gov/ of f i c e s / e n f o r c e me n t/ o f

a c /( v i s i t e do n J une 1 7 , 2 0 1 0 ). O F A C m a in tain s a n d p u b lish e s a list: [ a ] s p a r to f

i t s e n f o r c e m e n te f

f o r t s , O F AC publ i s hes a l i s tof i ndi vi dual s and compani es o w n e d o r c o n tro lled b y , o r a c tin g f o r o r o n b e h a lf of, t arget ed co u ntr i es. Ital so l i st s i nd i vidual s, gr oups , and ent i t i es , s uch as t err or i s t s and n a r c o t i c s t r a f

f i c k e r s d e s i g n a t e d u n d e rp r o g r a ms t hatar e notcountr y - s peci fi c. C ol l ect ive l y , s uch in d iv id u a ls a n d c o m p a n ie s a re c a lled “ S p e c ially D e sig n a ted N a tio n a ls” o r “ S D N s.” T h e ir a ss e tsSee a l so O FA C Speci al l yD es i gnat ed N at i onal s L i s tat461, 3 ht tp: //w w w . us t r eas . gov/ offi ces / enfor cement/ ofac / s dn/ t 11s dn. p d f (visit ed o n Ju n e 1 7 , 2 0 1 0 ). 7 a re b lo c k e d a n d U .S
. p e rso n s ar e g e n e ra lly p r o h i b i t e d f

r o m d e a l i n g wi t h th e m. ht tp: //w w w . tr ea s. g o v /of fi ces / enfor cement/ ofac / faq/ ans w er . s ht ml # 1 7 ( v i s i t e d o n J u n e 1 7 , 2 0 1 0 )
. Th e p e r s ons and organizat i on s i n O F A C ’s S pecial l yD esi g n a t ed N at i on al s & B l ocked Per s ons L i s t( “SD N L i s t ”) ar e s o des i gnat ed pur s uant t o a pat chw or k of fe der al l aw s , r egul at i ons , and exe cut i ve
o rd e rs . S e e , e .g ., 31 C
. F. R . §§ 536. 101- 36. 901 ( N ar cot i cs T r aff i cki ng Sanct i ons R egul at i ons ) & 594. 101- 94. 901 ( G l obal T err or i s m Sanct i ons ) ; E xec. O r derN o. 1 3 , 399, 71 Fed. R eg. 25, 059 (A p ri l 25, 2006) ( B l ocki ng Pr oper t yof A ddi t i onal P e rso n s in C o n n e c tio n W ith th e N a tio n a l E m e rg e n c yW ith R es pectt o Syr i a)
. I ndi vi dual s and bus i nes s es i n t he U ni t ed 3 S t a tes a re general l yprohibi t ed from con du ct i ng anybu si ness
w ith a n y o n e n a m e d o n O F A C ’s S D N L is t. S e e , e .g ., 3 1 C. F . R. § 5 3 6 .2 0 1 (“ [ N ]o p ro p e rtyo r i n ter e sts in p ro p e rty o f a sp e c iallyS ee als o O F A C F re q u e n tly A s k e d Q u e s tio n s a n d A n s w e rs , 4 http://w w w . ust reas . go v/offi ces/ enfo rcem ent/ ofac / faq/i nd ex. sh t m l #s dn ( t hen fol l ow “W hati s an SD N ?” hyper l i nk) ( vi s i t ed o n Ju n e 1 7 , 2 0 1 0 ). W e a ss u m e th a t th is is a “ F IC O ” sc o re . In d iv id u a ls 5 w ith F IC O sc o re s b e tw e e n 7 6 0 a n d 8 5 0 a re g e n e ra llye lig ib le 8 d e s ig n a te d n a rc o tic s tr a f f ic k e r t h a t a re in th e U n ite d S ta te s . . . m a yb e transferre d , p a id , ex p o rte d , w ith d ra w n o r o th e rw ise d e a lt in.”). T ran s U n ion d esc ri b es it s p ro d u ct, the O F A C A d v isor, 4
w hi ch i s al s o di s cus s ed i n gr eat er det ai l bel ow , as a “s cr eeni ng
so lu tion t hat pr ov i des credi tgrant ors w i t h a si m ple, autom at ic
m ethod for us e i n compl y i ng w i t h new fede r al r egul at i ons as s et for th i n t he U SA PA T R I O T A ct . ” J
. A
. 808. Sandr a C or tez w as born i n 1944 i n C hi cago. She w as l i vi ng i n C ol or ado w hen, i n M ar ch of 2005, s he dec i ded t o buy
a new car . B efor e v isi t i ng a ca rdeal er , s he dec i ded t o chec k hercr edi tr epor tt o l earn hercr edi ts cor e. H ers cor e w as appr oxi m at el y760, w hi ch i s a ver ygood cr edi tr at i ng. J . A
. 80;
s ee al s o J.A . 5 2 6 -2 7 (listin g C o rte z ’s s c o re a s 7 6 1 in th e c re d it
r e p o r t o b t a i n e d b y the d e a lership); 5forthe mostfavor abl e i nt er es tr at es forl oans . T he Fai rI s aac s C o m p a n y(“ F IC O ” ) is in th e b u sin e ss o f a n a ly z in g c re d it f a c to rs e lec tro n ica llyf

o r th e c re d it i n d u stryin g e n e ra l, in c lu d in g b a n k s a n d c re d it ca rd c o m p a n ies . T h e sc o re th a t it cal cul at es i s i nt ended t o be a numer i cal i ndi cat orthat co rrelat es w ith the s tr en g th o f o n e’s c red ith ist o ry . T h at sco re h a s c o m e to b e k n o w n a s th e “ F IC O ” sc o re a f ter th e F a ir Is a a c s C o m p a n y . See I n r e N guyen , 2 3 5 B . R . 7 6 , 8 0 (B an k r. N . D . C al
. 1999)
. O nl yabout27 per centof the popul at i on h a v e s c o re s b e tw e e n 7 5 0 a n d 7 9 9
. See ht tp: //w w w . m y fi co. com/ C r edi t E ducat i on/ C r edi t Scor es . as px (visit ed o n Ju n e 1 7 , 2 0 1 0 ). T ra n s U n io n late r a c k n o w led g e d th a t p e rso n a l cr e d it 6 r epor t s , w hi ch i tpr ovi des t o cons um er s , nevers how any 9 ht tp: //w w w . m y fi co. com/ m y f i co/ C r edi t C entr al / L oanR at es . as px ( v i s ite d o n J u n e 1 7 , 2 0 1 0 ). Th e c r e d i tr e p o r tth a tCort ez dow nl oaded be for e goi ng t o the ca rdeal er s hi p w as compi l ed and furni s hed byT r ans U ni on, one of the thr ee maj orcompani es p rov iding cre d itrep o rt s in the U n it ed S tat es. T h a t r ep o rt cont ai ned no i nform at i on about O FA C ’ s SD N L i s tand di d not
s ugges tt hatC or t ez w as a “Spec i al l yD es i gnat ed N at i onal ” or SD N , nordi d i tcont ai n any i nform at i on t hat w oul d s ugges tthat
s he w as s us pect ed of bei ng as s oci at ed w i t h any one w ho w as an S DN. 6i nform at i on oral er t s fr om i t s O FA C A dvi s orthati tpr ovi des t o cr edi t or s . J . A
. 205. 10 C or t ez pl anned t o fin an ce he rcarpur chas e thr ough the d eal er s hi p. A r m ed w i t h know l edge of hers t r ong cr edi ts core and a co p yo f

h e rc r e d i tr e p o r t , Cort e z wen tt o J o h n El way Subaru a ca rdeal er s hi p i n C ol o rado, t o pur chas e a c ar . She
arr i ved att he dea l er s hi p atappr oxi m at el y1: 00 pm and w as
r eadyt o pr ocee d w i t h a pur chas e aboutt hi r t ym i nut es l at er . She began c om pl et i ng t he r equi red p aperw or k and furni s hi ng the i nform at i on r equi r ed t o obt ai n a ca rl oan thr ough the dea l er s hi p. T he dea l er s hi p’ s fi nance m an ager , T y l erSul l i van, us ed the in f o rm a tio n C o rte z p ro v id e d to o b tain C o rte z ’s c r e d it rep o rt. J . A
. 468. I tw as a Tra ns U ni on cr edi tr epor tbeca us e the deale rsh ip su b sc rib e d to T ra n s U n io n ’s c re d it rep o rting servi ces, i ncl udi ng t he O FA C A dvi s or . U nl i ke the cr edi tr epor tC or t ez had dow nl oaded be for e goi ng t o the deal er s hi p, t he Tra ns U ni on
cr edi tr epor tt hatt he dea l er s hi p obt ai ned cont ai ned w hat Sul l i van l at err eferr ed t o as an “a dvi s oral ert , ” w hi ch w as anT he cr edi tr epor tT r ans U ni on s ends t o cr edi t or s w ho 7 s ubs cr i be t o t he O FA C A dvi s ordoes notcont ai n anyfur t her i nform at i on aboutt he s i gni fi canc e of a n O FA C al ert , nordoes i tpr ovi de anyi nform at i on aboutcont act i ng any one atthe T re a s u ry D e p a rt m e n t w h o h a n d le s O F A C a le rt s . J .A . 1 8 7 -8 9
. 11 a le rt f ro m th e O F A C A d v is o r. J .A . 4 7 1
. T hi s w as t he fi rst ti m e thatSul l i van had e vers een s uch
a n a le rt . I

d. H e cal l ed t he r egi onal fi nance di r ect ort o det erm i ne h o w h e sh o u ld resp o n d
. J. A
. 4 7 2 -73
. H e the n w en t t o O F A C ’s SD N L i st on the Tre as uryD epart m ent ’ s w ebs i t e “t o chec k [C or t ez’ s ] name agai ns tthe ac tual l i s t . ” J . A
. 473. I n s ear chi ng t he l i s t , he fi r s t “l ook[ed] for a m at chi ng name” and i f ther e w as a mat ch, he pl anned t o chec k bi r t h dat es . J . A
. 474. 7 Sul l i van then r eturned t o C or t ez a nd s t art ed as ki ng her ques t i ons i ncl udi ng w hether s he had “al w ay s l i ved i n t he U ni t ed St at es , i f [s he] had eve rl i ved out s i de of the countr y ” and other “r eal l ys t r ange que s t i ons . ” J
. A
. 83. H e then s how ed C ort ez the
cr edi tr epor tT r ans U ni on had pr ovi ded t o t he deal er s hi p. W hen she l oo ked at i t , she s aw t hat “i thad al l of these O F A C A l ert s,I ti s notcl earfr om hert es t i m onyw ho exac t l yas ked 8 C o rte z to w a it. 12 t al k al er t s . ” Id . C o r te z w a s v e ryc o n f u se d , sh e e x p lain e d to Sul l i van that sh e h ad “ne verbeen outof the countr yand that [s he] w as bor n i n C hi cago. ” I d. Sul l i van r es ponded byt el l i ng C o rt ez that “h e w as go ing to hav e t o ch ec k w ith the F B I . . . [t]o
se e if [ sh e ] w a s this p e rso n ” in th e O F A C a ler t o n h e r c r e d it
re p o r t. J .A . 8 4 . A s th is w a s o c c u rrin g , C o rte z w a s w a iti n g in th e s a le s p e rs o n ’s o f

f ic e , a n d th e d e a le rs h ip h a d h e r c a r k e y s . I d. Fi nal l y , atabout5: 00 pm , C or t ez sai d she had t o l eave , but
s om eone a s ked her t o w ai t . J . A
. 84- 85. W hen s he as ked w hat 8 t h e p e r s o n wa s g o i n g t o d o , a ga i n s h e wa s t o l d t h a tth e F BI
w oul d be cal l ed. A t t hi s poi nt , hour s had pas sed an d t he d e a le rs h ip w a s h o ld in g C o rt e z ’s d o w n p a ym e n t o n th e c a r. Id
. A s hor tt i m e l at er , C or t ez fi nal l y l eftthe dea l er s hi p. She cal led t he dea l er s hi p thats ame eveni ng and w as t ol d thatt hey had det erm i ned thats he “pr o b abl y ” w as notthe per s on i n t he O FA C al er t , and thats he coul d pi ck up the c ar. J . A
. 85. T hatShe l at ert es t i fi ed thatw hi l e s he w as s i t t i ng atthe 9 deal er s hi p, s he w as “w at chi ng peopl e s t ar e at[her ] w al ki ng back a nd for t h, and i tw as pr ett yhum i l i at i ng. T heyal l knew w hatw as goi ng on, and [s he] w as afr ai d t hattheythought [s he] w as t hi s per s on. ” J
. A
. 86. T rans U nion’s w ebsi t e descri bes “ H A W K al ert s ” as 10 foll ow s: T ran sU n ion p rov ides cre d it o rs w ith H A W K alert m e ss a g e [ sic ] t o n o tify th e m o f p o ten tially fr audul enti nform at i on and advi s es t hem t o chec k t h a ti n f o r m a t i o n m o r e c a r e f

u l l y. Speci al m es s ages s uch as H A W K al ertm es s ages in f o rm c re d ito rs th a t th e yn e e d to v e r if y sp e c if ic i nform at i on. T h e m es s age i s bas ed on the personal i nfo rm at i on used to access y ou r cr e d it r ep o rt . I tm ayal s o be bas ed on the per s onal inf o rm ati o n rec o rde d in y o u r cred itrep o rt . In r es pons e t o s peci al m es s ages , cr edi t or s m ay r eques tt hat y ou ver i fy y our per s onal i nform at i on y ou s ubm i t t ed atthe t i m e of a ppl i cat i on. ht tp: //w w w . t r ans uni on. com/ corpor at e/per s onal /per s ona 13 e v e n in g , s h e d id g o b a c k to th e d e a ler sh ip a n d sh e e v e n tu a llyg o t t he ca r . B efor e l eavi ng the dea l er s hi p w i t h hernew car , s he

9
as ked fora copyof the cr edi tr epor tthatthe dea l er s hi p had
re c e iv e d f

ro m T ra n s U n io n . T h e d e a le r s h i p p ro v id e d a c o p y , a n d p o in ted o u t th e O F A C a n d H A W K a ler ts o n th e re p o rt. 10l
. page ( fol l ow “C ons um erSuppor t ” hyper l i nk; then fol l ow “G etans w er s t o y ourques t i ons ” hyper l i nk under“R el at ed Topi cs ”; then s ear ch “A ns w er s ” for keyw ords “H aw k alert ”; then foll ow “W hat i s a H A W K a le rt ? ” h yp e rl in k ) ( la s t v is ite d J u n e 1 , 2 0 1 0 ). A s t he above ci t at i on s how s , gett i ng i nform at i on ot her t han s al es i nform at i on i s cumber s om e atbes ton T r ans U ni on’ s w ebs i t e. 14 T hatcr edi tr epor tw as a tw o- page doc um entent i t l ed: “T R A N S U N IO N C R E D IT R E P O R T . ” J.A
. 5 2 6 -27
. It cont ai ned i dent if

y i ng i nform at i on aboutC or t ez i ncl udi ng her name, Soci al Secur i t ynum ber , b irt h dat e, curr entand form er addr es ses, tel ephone number , and empl oy er . A num berof
s e c t i on s a p p e a r e d d i r e c t l yb e l o w t h a ti n f o r ma t i o n i n t h e s a me f o n ta n d s t y l e . Th e f

i r s ts u c h s e c t i o n wa s l a b e l e d : “ S P E CI AL M E SSA G E S. ” That“SPE C I A L M E S S A G E S” s ect i on cont ai ned t h e OFA C a n d HA W K a l e r t s . I t was f o l l o wed b y : “ M OD EL PR O FI L E , ” w hich cont ai ned s ever al num ber s i ncl udi ng C or t ez’ s FI C O cr edi ts cor e. T he r epor tthen cont ai ned the fol l ow i ng fours ect i ons : “C R E D I T SU M M A R Y ”, “TR A D E S”,

“ I NQ UI RI ES” , a nd “ END OF CRED I T REPORT —15 SE R V I C E D B Y . ” Id
. T he “SPE C I A L M E SSA G E S” sec ti on on t he fi r s tpage
s t a t e d : “ HA W K A LERT: I NPU T I SS UED : 1 9 5 9
- 6 0 ; STATE: CA ; ( EST. AG E OB TAI NED 0 0 + TO )
. . . HA W K A LERT: FI LE I SS UED : 1 9 5 9
- 6 0 ; STATE CA ; ( EST. AG E OB TAI NED +14 T O +16). ” Thi s w as fol l ow ed byei ghtentr i es t i t l ed:

“ OFA C A DV I SOR A LERT – I NPU T NA M E M ATC HES N A M E O N T H E O F A C D A T A B A S E .” T h e in f o rm a tio n in tho se e igh t entri es w as sim il ar to the inf o rm ati o n in O F A C ’s S DN L i s t , i n c l u d i n g t h e n a me : “ Co r t e s Qu i n t e r o , S a n d r a . ” J . A. 526- 27. T hat r e p o r ti s n o tv i s u a l l yt h e s a me a s t h e r e p o r tTr a ns Un i o n p r o v i d e s t o c o n s u me r s . I ta l s o d o e s n o th a v e t h e s a me
e x a c t co n ten t. T h e re p o rt th a t w a s s e n t to th e d e a ler sh ip cont ai ned no addi t i onal i nform at i on aboutth e s i g n i f i c a n c e o f the O FA C al er t s and n o i nform at i on abouthow t o fol l ow up or
co n tact an y o n e re g ard ing an yO F A C alerts th a t m ayap p ea r. J .A . 1 8 7 -8 9
.16 I n the aft erm ath of hervi s i tt o the ca rdeal er s hi p, C or t ez
c o n tac ted T ra n s U n io n a to tal o f f o u r tim e s i n a n e f

f o rt to
corr ecthercr edi tr epor t. J . A
. 199. She fi r s tt el ephoned Tr ans U n ion o n M arc h 3 1 , 2 0 0 5 , s o o n af ter she p u rch ase d the c ar. J . A
. 93. O n t hat day , s he s poke w i t h T r ans U nion ’s cu stomer
s ervi ce r epr es ent at i ves w ho t ol d C or t ez thatt her e w er e no O FA C al er t s on her cr edi t r epor t . J . A
. 207. C or t ez r es ponded byfaxi ng a copyof the r epor ts he had o b tai n ed fr om t he deal er s hi p al ong w i t h a l ett ert hatsu m m ar i zed he rexper i ence t her e. J . A
. 93. In that let t er , s he t ol d t he cus t om ers ervi ce rep rese n tat ive th at sh e h ad sp en t a t o tal o f six an d a h alf h o u rs i n t he dea l ershi p, t hats he w as t ol d t he FB I w oul d have t o be cont act ed, and thats he w as as k ed nott o l eave w hi l e the d e a le rs h ip lo o k e d in to th e is s u e . J .A . 9 4 -9 5 ; J .A . 5 3 3
.
O n A pr i l 6, 2005, not havi ng r ece i ved anyr es pons e t o her l e t t e r , Co r t e z s e n ta n o t h e rl e t t e rt o T r a n s Un i o n . J . A. 9 6 ; J . A. 2 1 9 ; J. A
. 5 3 4
. In th at let ter, sh e ag ain e x p lai n ed that there w ere17 “s ever al t err or i s t al er t s ” on her cr edi tr epor tand s he as ked for“a
r es pons e fr om [the] companyr egar di ng t hes e al ert s . ” J
. A
. 96- 97
. C o rt ez rec eive d a ge n eric w ri tt en resp o n se t o tha t le tter. T he l et t ers he r ece i ved w as d at ed A pr i l 18, 2005, and w as
u n sig n e d . It state d : A fter rev iew ing y o u r co rresp o n d en ce , w e w ere u n a b le to d e ter m in e th e n a tu r e o f y o u r re q u e st. T o i nves t i gat e i nform at i on co nt ai ned i n y our credi tr epor t , pl eas e l i s tt he ac countname and num ber , and s peci fy w hy y ou ar e di s put i ng i t( for exampl e, “thi s i s not m y acc ount ”, “I have ne ver p aid late” , “I h av e p aid th is acc o u n t in fu ll ”, etc. ). U nl es s y o u pr ovi de us t hi s i nform at i on, y our req u estw i l l be cons i der ed fr i vol ous underthe fede r al Fai rC r edi t R epor t i ng A ct , and w e w i l l be unabl e t o i ni t i at e an i nves t i gat i on. J.A . 5 3 7 . B ylette r d a ted A p ril 2 4 , 2 0 0 5 , C o rte z r e s p o n d e d to T r a n s Uni o n ’ s Apr i l 1 8 , 2 0 0 5 l e t t e r . J . A. 9 9
. Sh e i n cl uded
c o p ie s o f h e r p rio r c o rre sp o n d e n c e a n d e x p lain e d , “[ w ]ith th is l et t er , t h is m akes m yfour t h r eques tt o have thi s i ncorr ect i nform at i on r emoved fr om m y cr edi t r epor t . I f y ou l ook atthe
c r e d i tr e p o r te n c l o s e d y o u w i l l n o t i c e 1 0 H a w k a n d O F AC A dvi s oral er t s . . . . I am di s put i ng thes e al ert s beca us e theydoT ran s U n ion ac k n o w ledg ed that this w as a fo rm 11 l et t er . J . A
. 212. 18 n o t b e lo n g to m e . T h e n a m e is d if f e re n t, th e b irth d a te is d if f e rent and I do n ot have a p assport . I w ant these al ert s
r emoved f

r o m mya c c o u n t . ” J . A. 5 3 9
. Cort e z a l s o n o t i f i ed T r ans U ni on a sec ond t i m e thati thad the w r ong empl oy erl i s t ed f o r h e r. I d. C or t ez r ece i ved a r es pons e fr om T r ans U ni on dat ed M a y1 0 , 2 0 0 5 . Un d e r t h e h e a d i n g “ Re : Di s p u t e S t a tu s - No H aw k A l er t s orO FA C A dvi s orA l ert s , ” the l et t ers t at ed, “[b] ased on the i nform at i on pr ovi ded t o T r ans U ni on, our
r ecor ds s how t hatt he i nform at i on y ou di sput ed does not
curr ent l yappea ron y ourT r ans U ni on cr edi tr epor t . ” J
. A
. 545. 11 B as ed on thi s l et ter , C or t ez be l i eved thatT r ans U ni on had
rem ov ed the H A W K and O F A C al ert s fr om her cr editreport. J .A . 1 0 2
. O n J u n e 3 , 2 0 0 5 , Cort e z r e tu r n e d t o t h e d e a l e r s h i p a nd
a sk e d f o r a n o th e r c re d it rep o rt in o rd e r to c o n f irm th a t th e a ler ts had i n fac tbeen r emoved. D es pi t e Tra ns U ni on’ s r epr es ent at i on19 to th e c o n tra ry , the c r e d it r e p o rt th e d e a ler sh ip f u rn ish e d to C o rt ez sti ll h ad O F A C alerts. J. A
. 1 0 3
. T h ere w ere , h o w ev er,
s om e change s fr om t he r epor t t hat had i ni t i al l ybeen s entt o t he deal er s hi p t he dayC or t ez w ent t o buy a ca r . T he J une 3, 2005
r epor tno l ongerhad the phr as e: “H A W K A L E R T . ” I ns t ead, t he
r e p o r tn o w s t a t e d : “ HI GH R I S K F RA UD AL ERT: CL E AR F O R A L L S E A R C H E S P E R F O R M E D .” J .A . 5 4 6 . It stil l
s t a t e d : “ O F A C N A ME S C R E E N AL E R T - I N P U T N A ME M A T C H E S N A M E O N T H E O FA C D A T A B A SE
. ” Id
. I tt hen ha d f o u r e n t r i e s wi t h i n f

o r ma t i o n f

r o m OFAC’ s SDN L i s t ( as oppos ed t o ei ghti n t he o ri g inal cr edi tr epor tfurni s hed bythe d ea lership). C or t ez ne xtw entonl i ne t o the T r eas uryD epart m ent
w ebs i t e t o det erm i ne w hetherher name actual l yappea r ed on O FA C ’ s SD N L i s t . She di s cover ed a si m i l arname and emai l ed t he Tre as ur yD epart m ent t o as k how s he mi ghtcorr ectthe err or
an d rem ed yh er situ ati o n . J. A
. 1 0 4 -05
. T h e T rea su ry D epart me n tr efe r r ed hert o i nform at i on on i t s w ebs i t e, w hi ch s he20 late r te stif

ied sta ted th e f

o llo w in g : I f c r e d i tb u r e a u s c h o o s e t o p l a c e OF AC i nform at i on o n thei rcr edi tr epor t s [s i c] they s ho u l d cons i dert he fol l ow i ng gui del i nes . T he t e x to n t h e r e p o r ts h o u l d e x p l a i n th a tthe indi vi dual ’ s i nform at i on i s s i m i l art o t he in for m a tio n o f

a n in d iv id u a l o n O F A C ’s S D N list. I ts houl d n ots t at e . . . thatthe i nform at i on m at ches , ort hatthe cr edi tappl i canti s , i n fac t , the in d iv id u a l o n th e S D N list u n les s th e c r e d it b u re a u h a s a lre a d yv e rif ie d th a t th e p e rso n is ind ee d o n the S D N [li st]
. J .A . 1 0 6 -0 7 . I n J une of 2006, a l andl or d pul l ed C or t ez’ s T r ans U ni on
c re d it rep o rt w h e n sh e tried to re n t an a p a rtm e n t. C o rte z to ld h im a b o u t th e O F A C a ler ts b e f o re h e re v iew e d th e c re d it rep o rt, in a n e f f o rt to e x p lain a n d m in im ize th e ir e f f e c t. T h a t cr e d it
r epor t , dat ed J une 12, 2 006, w as s ubs t ant i al l ys i m i l art o the
s econd r epor tC or t ez ha d r ece i ved f r o m the dea l er s hi p m or e than a y earear l i er . J . A
. 549- 51. A l t houg h i tdi d notcont ai n any

“ HAWK AL E RT ” me s s a g e s , i ts t i l l s t a t e d , “ OFAC NAM E S CR E E N A L E R T

– I N P U T N A ME MA T C H E S N A ME ON T H E O F A C D A T A B A S E ”
. Id
. I tal s o s t i l l had fourentr i es21 w i t h i nform at i on fr om O FA C ’ s SD N L i s t . N evert hel es s , C or t ez
w a s a b le to re n t th e a p a rt m e n t. J .A . 1 1 2
. Fr om t he fi r s t day i n E l w ay Subaru, w hen C or t ez l earned
a b o u t th e O F A C a ler ts o n h e r c re d it re p o r t, C o rte z sp o k e w ith herdaught er , A nna M ar i e Schen, aboutheror deal. J. A
. 141. T h e O F A C alerts cam e u p at l ea st o n ce d u ri n g ev ery
comm uni cat i on betw een C or t ez and S chen aft er t he i nci dentat E l w aySubaru, and s ubs eque n tt r i al t es t i m onyes t abl i s hed that t he al er t s oft en r educe d C or t ez t o t ear s . T he al ert s al s o caus ed C o rte z to lo se w e ig h t an d th e yin ter f e re d w ith h e r a b ili tyto
s l eep t o s uch an ext ent t hat s he re s or t ed t o m edi cat i on. J . A
. 142. A ccor di ng t o Schen, the cr edi tr epor ti s s ue “i s the numberone
s t r e s s o ri n [ Cort e z ’ s ] l i f e . . . . [ T] h i s i s a b i g s t r e s s o ro v e rt he p a s t t w o y e a rs .” J .A . 1 4 3 -4 4 . It h a s b e e n “ v e ry . . . devas t at i ng. ” J
. A
. 146. B . T h e S i gn i fi can ce of O F A C A l erts an d the S D N L i st T h e Uni t i n g a n d Str e n g t h e n i n g Am e r i c a b yPr o v i di ng A pp ropri at e T oo l s R equ i red t o Int e r cept and O bst ructT err ori sm22 A ct o f 2 0 0 1 , b e t t e rk n o wn a s th e USA PATRI OT A c t , f ur t her codi fi ed the obl i gat i ons of fi nanci al i ns t i tut i ons i n thei rdeal i ngs
w i t h i ndi vi dual s on O FA C ’ s SD N L i s t . 115 St at . 272 ( O ct . 26, 2001)
. U ndert he U SA PAT R I O T A ct , the Tre as uryD epart m ent
m u st “ re q u ire f

in a n c ial in stitu tio n s to im p lem e n t . . . re a so n a b le pr ocedures fo r . . . cons ul t i ng l i s t s of know n ors us pect ed t err or is t s ort err or i s tor gani zat i ons pr ovi ded t o t he fi nanci al insti tuti o n b yan yg o v ern m en t age n cyto d eterm in e w h ethe r a per s on s eeki ng t o open an acc ount appea r s on anys uch l i s t . ” 31 U . S. C
. § 5318( l)(2 ); see 31 C
. F. R . § 103. 121( b) ( 4) ( T he C us t om erI dent i fi cat i on Pr ogr am “m us t i ncl ude pr ocedur es for d e t e r mi n i n g wh e t h e r th e c u s t o me r a p p e a r s o n a n y l i s t o f k n o wn
ors us pect ed t err or i s t s ort err or i s tor gani zat i ons i s s ued byany Feder al governm entagenc y . ”)
. “[T] ran s act i ons ar e pr ohi bi t ed

. . . i f ei t hers uch tr ans act i ons ar e by , oron behal f of, orpur s uant t o t he di r ect i on of an y d esi gnat ed for ei gn countr y , orany
n a tio n a l th e re o f.” 3 1 C .F .R . § 5 0 0 .2 0 1 . In m o st c a se s, it is
u n law fu l t o ex tend cre d it to a p erso n w h o se na m e i s o n O F A C ’sO FA C has pr ocedur es t o unbl ock funds i n t he ca s e of 12 mi s t a k e n i d e n t i t y , 3 1 C. F . R. § 5 0 1
. 8 0 6 , a n d t o h a v e a n a me r emoved fr om des i gnat ed l i s t s , 31 C
. F. R . § 501. 807. 19 U
. S. C
. § 3907 ( m axi m um fi ne forw i l l ful vi ol at i on of 13 law s g o v ern ing clea n d iam o n d tr ad e). 23 S D N L ist. 1

2 D ependi ng on t he appl i c ab l e l a w, r e g u l a t i o n , o rexec ut i ve
or deri nvol ved, fai l ur e t o compl yw i t h t hes e r es t r i ct i ons m ay
r es ul ti n ci vi l as w el l as cr i m i nal penal t i es . W i l l ful vi ol at i ons
c a r r yc r i mi n a l p e n a l t i e s wi t h f i n e s r a n g i n g f

r o m $5 0 , 0 00 to

1321 U
. S. C
. § 1906 ( m axi m um fi ne of $10, 000, 000 forw i l l ful 14 vi ol at i on of l aw s governi ng i nt ernat i onal nar cot i cs tra f f ick in g ); see al

so 31 U
. S. C
. § 5322 ( m axi m um fi ne of $ 2 5 0 ,0 0 0 f

o r w ill f u l v io latio n o f

th e U S A P A T R IO T A c t, i ncl udi ng 31 U
. S. C
. § 5318( l ) ( 2) , w hi ch r equi r es fi nanci al insti tuti o n s to c o n su ltsu sp ec ted terro ri st l ist s su ch as O F A C ’s SD N L i s tbefor e tr ans act i ng w i t h i ndi vi dual s , w i t h t he amount i ncr eas i ng t o $500, 000 foraggr avat i ng ci r cumst ance s ) ; 50 U . S. C
. § 1705( c) ( m axi m um fi ne of $1, 000, 000 forw i l l ful v iolati o n o f th e In terna ti o n al E m erg en cyE co n o m ic P o w ers A ctand i t s i m pl ement i ng r egul at i ons , w hi ch i ncl ude re g u la tio n s g o v e rn in g m a n yO F A C p ro g ra m s , s e e , e .g ., 31 C
. F. R . § 536. 701 ( penal t i es underN ar cot i cs T r aff i cki ng Sanct i ons ) ) ; 50 A pp. U . S. C
. § 16( a) ( m axi m um fi ne of $1, 000, 000 forw i l l ful vi ol at i ons of the Tra di ng w i t h t he E n em yA ct of

1 9 1 7 ). 3 1 U . S
. C
. § 5 3 2 2 (m ax im u m im p ri so n m en t t erm o f 5 y ea rs 15 forw i l l ful vi ol at i on of the U SA PA T R I O T A ct , i ncl udi ng 31 U .S .C . § 5 3 1 8 (l)(2 ), w h ich re q u ire s f in a n c ial in stitu tio n s to con sul tsuspect ed terror i stl i st s such as O F A C ’s S D N L i st befor e tr ans act i ng w i t h i ndi vi dual s w i t h t erm i ncr eas i ng t o 10 y ea rs fo r ag g rav ati n g circu m stan ce s). 18 U
. S. C
. § 2332d ( m axi m um i m pr i s onm entt erm of 10 16 y ea rs fo r en g ag ing in f

inan cial tran sac ti o n s w ith a c o u n try s uppor t i ng i nt ernat i onal t err or i s m ) ; 21 U
. S. C
. § 1906 ( m axi m um i m pr i s onm entof 10 y ear s forw i l l ful vi ol at i on of l aw s governi ng i nt ernat i onal nar cot i cs tr aff i cki ng) ; 50 A pp. U . S. C
. § 16( a) ( m axi m um i m pr i s onm entof 10 y ear s for w i l l ful vi ol at i ons of the Tra di ng w i t h t he Enem yA ctof 1917) ; 50 U
. S. C
. § 1705( c) ( m axi m um i m pr i s onm entt erm of 20 y ear s forw i l l ful vi ol at i on of the I nt ernat i onal E m er gency 24 $10, 000, 000 a s we l l a s i mp r i s o n me n tr a n g i n g f r o m 5 , 10 to 14 15 16E con om i c P ow ers A ctand i t s i m plem enti ng regul at i on s, w hich i nclude regulat i on s gov erni ng m anyO F A C program s, s e e , e .g ., 31 C
. F. R . § 536. 701 ( penal t i es undernar cot i cs tr af fick ing san cti o n s)). 2 1 U . S
. C
. § 1 9 0 6 (m ax im u m im p ri so n m en t t erm o f 3 0 y ea rs 17 f o r a n yo f f ice r, d ire c to r, o r a g e n t o f a n e n tityw h o k n o w in g ly par t i ci pat es i n vi ol at i on of l aw s governi ng i nt ernat i onal n arc o ti cs traf

fick ing ). 18 U
. S. C
. § 2339B ( m axi m um i m pr i s onm entt erm of 15 18 y ears for providi ng m at eri al supp ortt o a fo rei gn t err ori st or gani zat i on, w hi ch t erm i ncr eas es t o l i fe i f the dea t h of any p erso n resu lt s). 19 U
. S. C
. § 3907 ( m axi m um ci vi l penal t yof $10, 000 for 19 v io la tio n o f

la w s g o v e rn in g c le a n d ia m o n d tr a d e ); 3 1 U .S .C . § 5321 ( m axi m um ci vi l penal t yof $100, 000 forvi ol at i on of the U SA PA T R I O T A ct , i ncl udi ng 31 U
. S. C
. § 5318( l ) ( 2) , w hi ch requi res fi nan ci al i nst i tuti on s t o co nsultsuspect ed terror i st lists s u c h a s O F A C ’s S D N L ist b e f o re tra n sa c tin g w ith in d iv id u a ls); 5 0 A p p . U .S .C . § 1 6 (b ) (m a x im u m c iv il p e n a lty of $50, 000 forvi ol at i ons of the Tra di ng w i t h t he Enem yA ct of 1917) ; 18 U
. S. C
. § 2339B ( m axi m um ci vi l penal t yof $50, 000 ort w i ce the amountof the tr ans act i on thati s the bas i s fort he vi ol at i on forpr ovi di ng m at er i al s uppor tt o a for ei gn t err or i s tor gani zat i on) ; 50 U
. S. C
. § 1705( b) ( m axi m um ci vi l penal t yof $250, 000 forvi ol at i on of the In ter n a tio n a l E m e rg e n c yE c o n o m ic P o w e rs A c t an d its 25 30 y ear s , oreven l i fe. C iv il p e n a lti e s ra n g e f ro m $ 1 0 ,0 0 0 to 17 18 $1, 000, 000, ort w i ce t he am ount of each unde r l y i ng t r ans act i on pervi ol at i on. 19i m pl ement i ng r egul at i ons , w hi ch i ncl ude r egul at i ons g o v e rn in g m a n yO F A C p ro g ra m s , s e e , e .g ., 3 1 C .F .R . § 5 3 6
. 7 0 1 (pe n alt ies u n d er N arc o ti cs T raf fick ing S an cti o n s)); 21 U
. S. C
. § 1906 ( m axi m um ci vi l penal t yof $1, 000, 000 for vi ol at i on of l aw s governi ng i nt ernat i onal nar cot i cs tr af fick ing ). 26 In a “ Q & A ” se c tio n in c lu d e d o n its w e b site , O F A C p o sts t h e f o l l o wi n g q u e s t i o n : “ Wh a tI s T h i s OF AC I n f o r ma t i o n On M y C r e d i tR e p o r t ? ” I tth e n o f f e r s th e f o l l o w i n g r e p l y: C r edi tbur eaus and age nci es i n par t i cul arhave a d o p ted n e w m e a su re s to e n su re c o m p lian c e w ith O F A C re g u latio n s. B e f

o re iss u in g a c re d it rep o rt, t heyu s e s p e c i a l “ i n t e r d i ct i on” s oftw ar e deve l oped b yth e p riv a te s e c to r to d e ter m in e if a c re d it appl i canti s on t he SD N l i s t . T hi s s oftw are m at ches t he cr edi t appl i cant ’ s name and ot her inf o rm ati o n to the ind ividu als o n the S D N li st. If there is a p o tential m atch , the c red itb u rea u s are p lac in g a “ re d f

lag ” o r a le rt o n th e re p o rt. T h is d o e s n o t n e c e s s a r ilym e a n th a t so m e o n e is i l l egal l y us i ng y ours oci al s ecur i t ynum berorthat y ou have ba d cr edi t . I ti s m er el ya r emi ndert o t he p e rso n c h e c k in g y o u r cre d it th a t h e o r sh e sh o u ld v e r i f ywh e t h e ry o u a r e t h e i n d i v i d u a l o n t h e S DN l i s tb yc o mp a r i n g y o u r i n f o r ma t i o n t o t h e OF AC i nform at i on. I f y ou ar e nott he i n d i vi dual on t he S D N list, th e p e rso n c h e c k in g y o u r c re d it sh o u ld d isre g a rd th e O F A C a ler t, a n d th e re is n o n e e d to cont actO FA C
. H ow ev er, i f the per s on chec ki ng y ourcr edi tb el i eves y ou ar e the per s on on the S DN l i s t , t h e n h e o rs h e s h o u l d c a l l t h e OF AC27 H o tli n e to v e rif

ya n d re p o rt it. ht t p: / / w w w . t r eas . g o v / o f f i c e s / e n f o r c e me n t/ o f

a c / f a q / a n s wer . s ht ml # c o n s u me r 1 ( v i s i t e d o n J u n e 1 7 , 2 0 1 0 )
. On t ha t s a me
w ebs i t e, O FA C al s o ans w er s t he ques t i on: “H ow C an I G etT he O F A C A ler t O f

f M yC re d it R e p o rt? ” a s f o llo w s: A c o n su m e r h a s th e rig h t u n d e r th e F a ir C re d it R e p o rtin g A c t ( F C R A ), 1 5 U .S .C . 1 6 8 1 e t se q ., to r eques tt he r em oval of i ncorr ecti nform at i on on his /her cr edit re po rt . T o acco m pli sh t his , cons u m er s s houl d cont actthe cr edi tr epor t i ng agenc yorbur eau t hat i s s ued t he cr edi tr epor t . For m or e i nform at i on on cons um er s ’ r i ght s underthe F C R A , v isi t th e F ed era l T rad e C o m m issi o n ’s w ebs i t e at h ttp ://w w w .ftc .g o v /o s/s tatu tes /f c ra ju m p .sh tm ht tp: //w w w . t r eas . gov/ offi ces / enf o rce m en t/ o fa c/faq/ ans w er . s ht
m l# c o n s u m e r2 (v is ite d o n J u n e 1 7 , 2 0 1 0 ).

C . T rans U ni on’ s O F A C A dvi s or O FA C r ecogni zes the n eed t o ens ur e thati t s r epor t s do
n o t m is ta k e n ly a s s o c ia te in n o c e n t a n d u n su sp e c tin g p e rso n s w ith p e r s o n s wh o a r e p r o p e r l yl a b e l e d “ S DN. ” T h u s , OF AC cauti on s: “organ i zat i on s i nv olved i n t he creditreport i ng process28 . . . . can make an i m por t antcontr i but i on byi dent ify i ng
s anct i oned i ndi vi dual s i n or d ert o bl ock thei rabi l i t yt o us e the U . S
. fi nan ci al sy st em and t o d o b usi nes s in t he U nit ed S t at es, b u t atthe s am e ti m e the ysh o u ld s tr ive to p rotec t con su m ers f ro m e rro n e o u s o r m isle a d in g in f o rm a tio n a p p e a r in g o n c re d it
re p o rt s .” D e p a rt m e n t o f T re a s u ry, OF

A C R E GULA T

ION S F OR THE CRED IT REP ORTI NG I ND USTR Y

, A pr. 1 3 , 2004, ht tp: //w w w . t r eas . gov/ offi ces/ enfor cement/ ofac /r egul at i ons / fac cr.pd f (v isi ted J u n e 1 7 , 2 0 1 0 ).

I n Sept embe r o f 2 002, T r ans U ni on announce d a “ne w pr oductforU SA Pat r i otA ctC om pl i ance ” w hi ch i tcal led: “O F A C A dv iso r.” T rans U nion l aud ed the produ ctas a “s cr eeni ng s ol ut i on t hat pr ovi des cr edi tgr ant or s w i t h a s i m pl e, aut om at i c met hod forus e i n compl y i ng w i t h new fede r al
r egul at i ons as s etfor t h i n t he U SA PA T R IO T A ct. ” J. A
. 808. T r ans U ni on r efe r s t o t he S D N i nform at i on thati tr epor t s fr om O FA C as an “O FA C N ame Scr een A l ert . ” S e e , e .g ., J . A
. 549,29 5 7 0
. T he O FA C al erton T r ans U n ion cr edi tr epor t s w as devel oped bya t eam t hati ncl uded i ndi vi dual s fr om T r ans U ni on’ s bus i nes s and s y s t ems uni t s , as w el l as peopl e fr om t he l egal and co m pli ance sect i on s. J. A
. 31 1. In the n orm al cou rs e of deve l opi ng any s uch pr oduct , a l egal and compl i ance t eam do pr el i m i naryr evi ew s t o det erm i ne w hether t he produc ti s “goi ng t o r equi r e perm i s s i bl e purpos e, di s cl os ur e, [and/ orhave] contr actual i s s ues . ” J
. A
. 312. A ft erthe pr oducti s devel oped,
a n o th e r f in a l r e v ie w is d o n e b ya le g a l te a m . Id
. T h e in f o rm a tio n in T ra n s U n io n ’s O F A C a ler t is pr ovi ded t o pur chas er s t hr ough a thi r d party vendorcal l ed “A ccui t y . ” J . A
. 574, 809. T r ans U ni on deci ded nott o i ncl ude t he under l y i ng i nform at i on fori t s O FA C pr oducti n T r ans U n io n ’s o w n d a ta b a s e . T h a t d a ta b a s e is c a lle d “ C R O N U S .” T r ans U ni on deci ded t o do t hatbeca us e “the onl ycomm on d e n o m in a to r in a ll th e e n tries [ re f e rrin g to O F A C ’s S D N L ist]
w as a name. ” J. A
. 3 13. U nl i ke C R O N U S, the entr i es i n theT h a t ag re e m e n t sta tes in re lev a n t p a rt: 20 T r ans U ni on agr ees t o m ake a vai l abl e as an a d d
- on t o cons um er r eport s ( i ncl udi ng as an exc l us i on c riter ia o n a n in p u t p re sc re e n list, o r a n a p p e n d to a p re sc re e n e d list), an d a s a n a d d -o n to c e r ta in anci l l arypr oduct s offe r ed by T rans U ni on fr om 30 SD N L i s t do notal w ay s i ncl ude bi r t h dat es , addr es s es , orSoci al Secur i t y num ber s t hat T r ans U ni on r out i nel ys t or es and r el i es on
w h e n a s s o c ia tin g a g iv e n c o n s u m e r w ith in f o rm a t io n . I

d. H avi ng deci ded t o us e A ccui t yratherthan mai nt ai n t he i n f o r ma t i o n i t s e l f

, T r a n s Un i o n th e n ma r k e t e d th e OF AC i n f o r ma t i o n a s p a r to f

a s e p a r a t e p r o d u c tc a l l e d “ OF AC A dvi s or . ” J
. A
. 313- 14, 808- 09. T r ans U ni on does not s el l the O FA C al erti nform at i on as
a s t and al one pr oduct ; cr edi t or s m us tfi r s tpur chase a Tra ns U n ion p rod u ct su ch as c red it rep o rt serv ices a n d the O F A C alert is a d d e d to th a t p ro d u c t. P u rc h a se rs o f T ra n s U n io n ’s c re d it rep o rt s w ho w ant ed t o s ubs cr i be t o t he O FA C A dvi s orw ere
r equi r ed to si gn an adde ndum t o t hei ragr eementw i t h T r ans U ni on i n or dert o s ubs cr i be t o t he O FA C A dvi s or . T hos e w ho 20ti m e to tim e an ind icator w h ethe r the c o n su m er’s name appear s on the U ni t ed St at es D epart m entof T re a su ryO f

f ice o f F o re ig n A ss e t C o n tro l F ile ( “O FA C Fi l e”)
. T he s ervi ce i s r efe r r ed t o as O FA C A dvi s or . Subsc r i berm ayr ece ive the O F A C A dv i s orservice und er the fo l l ow i ng t erm s:

. . . . I n t h e e v e n t S u b s c r i b e ro b t a i n s OF AC A dvi s or s ervi ces fr om T r ans U ni on i n conj unct i on w i t h C ons um erR epor toras an appen d to an ancil l aryservice, S ub scr i ber shal l be so lely r es pons i bl e fort aki ng anyact i on that m aybe re q u ire d b yf

e d e ra l law a s a re su lt o f a m a tch to t he O F A C F ile, a nd shal l no tden yor ot herw i se t ake a nyadver s e ac t i on agai ns t a nycons um er based s ol el yon T r ans U ni on’ s O FA C A dvi s or S ervi ces. J .A . 5 6 8
. 31 pur chas ed O FA C A dvi s orr ece i ved one c r edi tr epor tfr om T r ans U n ion w ith the O F A C inf o rm ati o n c o n ta in ed in it
. H o w ev er, T ra n s U n io n c re a ted th e re p o rt f ro m a t lea st tw o se p a ra te
so u rc e s: its o w n C R O N U S d a tab a se an d in f o rm a tio n sto re d w ith A c c u ity . T ra n s U n io n re q u ire s c re d ito rs to p ro v id e a t l e a st a
name an d ad d res s of a c ons um ert o r etr i eve i nform at i on fr om CR ONUS
. J . A. 3 1 9
. Howe v e r , wh e n r e t r i e v i n g OF AC i nform at i on, T r ans U ni on s ends onl ya name t o A cc u i t y , even32 t hough T r ans U ni on m ayhave mor e i nform at i on aboutt he per s on w ho i s t he s ubj ect of t he i nqui r y . J . A
. 318. T r ans U ni on
re p o rt s a “ m a tc h ” w h e n e v e r n a m e s a re “ s im ila r.” J .A . 1 8 0
. T r ans U n ion e nt er s t he i nform at i on i tr ece i ves fr om A ccui t yunder t he “SP E C I A L M E SSA G E S” s ect i on appea r i ng on i t s cr edi tr epor t s . T r ans U ni on does no othercompar i s on or due di l i gence w i t h t he dat a i t r ece i ves fr om A ccui t yt o at t empt t o m at ch i tt o t he cons um erw hos e cr edi t rep or ti s bei ng f u r n i s h e d
. T h u s , T r a n s Un i o n n e i t h e rc o mpa r e s th e OF AC i nform at i on t o ot he ri n f

o rma t i o n ab o uta gi ven cons um eral r eady i n i t s fi l es , nordoes i tcompar e i t t o any i nform at i on pr ovi ded by t he cr edi t or/ s ubs cr i ber
. J . A
. 179. M or eover , once T r ans U ni on
re c e iv e s th e O F A C in f

o rm a tio n it d o e s n o t ch e c k o r c o n f irm its
acc ur acy ; in fac t , T r ans U ni on has a pol i cyof neve r
r ei nves t i gat i ng di s put es i nvol vi ng O FA C al ert s . J. A
. 203- 04. T r ans Uni o n me r e l y“ r e p o r t [ s ] b a c k th a tth e i n p u ti n f o r ma t i on i s a mat ch t o t he O FA C r epor t . ” J
. A
. 204. I n a pr es ent at i on that T r ans U ni on gi ves t o pot ent i al33 s ub s c r i be r s t o the O FA C A dv i s or , Tr a ns U ni on s t a t e s , “ The U . S. T re a su ryD e p a rtm e n t re q u ire s th a t all in stitu tio n s c o m p lyto in su re th a t th e ya re n o t e x ten d in g c re d it o r f in a n c ial s e rv ice s to
c u sto m e rs o n th e O f

f ice o f F o re ig n A ss e ts C o n tro l, O F A C list,
o f k n o w n te rr o ri s ts , d ru g tr a f f ic k e rs , a n d m o n e yl a u n d e re rs .” J.A . 1 5 5 , 5 7 0
. T h e p re se n tatio n re p re se n ts th a t T ra n s U n io n a c ts in “ p a rtn e r s h ip ” w ith A c c u itya n d lau d s th e a d v a n tag e s o f th is prod uct . J . A
. 574. T r ans U ni on des cr i bes A ccui t yas an“[ i ] nd u str y le aderi n O FA C s cr eeni ng s ervi ces . ” Id
. T he
s l i de boas t s t hatt he pr oducti s “[e ] ndor s ed” by the A m er i can B an k e rs A sso ciati o n an d that ith as “ [b ]roa d er a n d m o re compre hens i ve fi l e cove r age. ” Id
. T ra n s U n io n a lso c laim s its dat abas e has “[e ] ffe ct i v e m atchi ng l ogi c” thatw i l l “[r ] educe [ th e ] n u m b e r o f

f a ls e p o s itiv e s .” J .A . 5 7 4 -7 5 . As Co r t e z d i s c o v e r e d , th e i n f o r ma t i o n i n th e “ S P E CI AL M E SSA G E S” s ect ion o f Tra ns U ni on’ s cr edi tr epor t s i s not inclu d ed in cre d itrep o rt s tha t T ran s U n ion sen d s to c o n su m ers
on r eques t . J . A
. 157. T he cr edi tr epor t s s entt o cons um er s do34 have a publ i c r ecor ds s ect i on, w hi ch cont ai ns i nform at i on s uch
a s ta x lien s, ju d g m e n ts, o r b a n k r u p tc ies . T h a t in f o rm a tio n is retri eved from C R O N U S
. J. A
. 21 4. If T rans U nion r ecei ves a di s put e rel at ed t o i nform at i on i n t he publ i c r ecor d s ect i on of a
re p o rt , i ti nv est i gates the d i spute byei t her check i ng w i t h it s p u b li c re cor d vendororchec ki ng cour tr ecor ds cont ai ni ng t he d isp u ted in f

o rm a tio n . J.A
. 1 9 9
- 2 0 0 . T ra n s U n io n d o e s n o t, how ev er, conductanyi nves t i gat i on i n r es pons e t o di s put es
r el at ed t o O FA C al er t s . J . A
. 201. I ti s notcl earw hatT r ans U ni on’ s cus t om ers ervi ce repr e sen t at i ves t el l con sum ers w ho dis pu t e O F A C al ert s. A ccor di ng t o on e o f Tra ns U ni on’ s gr oup m anage r s w ho test ifi ed at th e tri al, the co m p an y ’s po li cyis t o ref er c o n su m ers
w h o c o m p lain a b o u t a n O F A C a ler t to th e T re a su ryD e p a rtm e n t. J . A
. 205; 211. H ow ever , thi s di d notoccuri n C or t ez’ s cas e. A ccordi ng t o T rans U n i on , w hen the d eal ers hip fi rs t
r e v i e wed Cort e z ’ s c r e d i tr e p o r t , Tr a n s Uni o n c o u l d n o tb l o ck O FA C i nform at i on fr om bei ng i ncl uded i f A ccui t ydet erm i ned35 t hathername m at ched a name on O FA C ’ s SD N L i s t . J . A
. 182- 83. T hi s cont i nued t o be true atl eas tt hr ough Sept emberof 2006. H ow ever , w hen thi s cas e came t o tr i al , T r ans U ni on had bl ocked s ever al s i m i l arnames a nd any“Sandr a C ort ez ” w as b l o c k e d f

r o m h a v i n g a n O F A C a l e r to n h e rc r e d i tr e p o r t . J . A. 1 8 3 -8 4
. T h e F a ir C re d it R e p o rtin g A c t w ill b e d isc u ss e d in d e tail bel ow . H ow ever , i ti s hel pful atthi s poi ntt o not e th at th e A ct aff or ds ce rt ai n pr ot ect i ons t o cons um er s byr egul at i ng t he d i s c l o s u r e a n d u s e o f “ c o n s u me r c r e d i t r e p o r t s ” a s d e f i n e d by t he A ct . T r ans U ni on m ad e an i nt ernal det erm i nat i on t hatthe O F A C A d v iso r w a s n o t g o v e rn e d b yth e F C R A . A c c o rd in g to T ra n s U n io n ’s d ire c to r o f so lu tio n s a n d b u sin e ss d e v e lo p m e n t, “[a ] ft err evi ew byourl egal and compl iance depart m entt hey d e te rm in e d th a t th is w a s n o t F C R A d a ta .” J .A . 1 6 9
.

D . P roce dural H i s t ory C o rte z b ro u g h t th is a c tio n u n d e r th e F a ir C re d it Re p o r t i n g Ac ta f

t e rTr a n s Un i o n f

a i l e d t o c o r r e c tt h e p r o b l e ms
w i t h her cr editreportor r espon d sat i sfact ori l yt o h er i nq uir i es. T he s ui t pr ocee ded t o ver di ct . T he j ury found t hat T r ans U ni on36 fai l e d t o f

o l l o w r e a s o n a b l e p r o c e d u r e s t o a s s u r e ma x i mum pos s i bl e ac cur acyi n pr o duci ng C ort ez’ s cr edi tr epor tand w as
n e g l i g e n ti n d o i n g s o . Th e j u r yc o n c l u d e d t h a tTr a n s U ni on
w i l l fu ll yfai l ed t o r eas onabl yr ei nves t i gat e C or t ez’ s di s put es
a f ter sh e in f

o rm e d th e c o m p a n yo f

th e e rro n e o u s O F A C a ler t it had i ncl uded on hercr edi tr epor t . T he j uryal s o found thatT r ans U ni on w i l l ful l yfai l ed to n ot e C or t ez’ s di s put e on s ubs equent
r epor t s and t hat i t w i l l ful l y fai l ed t o pr ovi de C or t ez al l of the i nform at i on i n herfi l e des pi t e herr eques t s . T he j uryaw ar ded C or t ez $50, 000 i n actual damages and $750, 000 in p u n i t i ve d a m a g e s . T her eaf t er , T r ans U ni on m oved for j udgm ent as a mat t er of l aw ori n t he al t ernat i ve a ne w tr ia l orr emi t t i turof the d am ag es a w ard s. T h e d is tr ictco u rtd en ied T ran s U n ion ’s
m ot i on forj udgm entas a ma tt er o f la w . T he courtconcl uded that the O F A C inf

o rm ati o n w as p art of

C o rt e z ’s cre d itrep o rt
a n d th u s , g o v e rn e d b yth e F C R A
. Cor t ez v . Tr an s U ni on , LLC , C iv . N o . 0 5 -5 6 8 4 , 2 0 0 7 W L 2 7 0 2 9 4 5 , a t * * 1 -2 (E .D . P a . S e p t. 13, 2007)
. T he court also h eld t hatt her e w as no bas i s for gr ant i ng defe ndanta new tr i al , “exc eptw it h respectt o the37 al l eged exce s s i venes s of the j ury ’ s ver di ct . ” I d. at *2
. T h e c o u rt confi r m ed the $50, 000 compensa t orydamages aw ar d butfound t hatt he $750, 0 0 0 puni t i ve damages aw ar d “exc eede d perm i s s i bl e l i m i t s . ” Id
. T he di s t r i ctcour tconcl uded that“an
a war d o f p u n i t i v e d a ma g e s . . . [ o f ] d o u b l e th e a mou n to f the
co m p en sato ryaw ard [w as th e] m ax im u m w h ich th is r ec o rd
w oul d s uppor t . ” I

d. T h e courtt hen ent er ed an or derw hi ch sta ted in p e rtin e n t p a rt: “D e f e n d a n t’s m o tio n f

o r a n e w trial is G R A N T E D w i t h respectt o d am ages , u n less, w i t hin 30 d ay s, p l a i n t i f f a c c e p t s a r e mi t t i tu r , l i mi t i n g th e a war d t o $ 5 0 , 000
co m p en sato ryd am a g e s an d $ 1 0 0 , 0 0 0 p u n it ive d am ag es, fo r a t ot al aw ar d of $150, 000. ” Id
. at*3. C or t ez a ppeal ed thator deron O ct ob er 12, 2007. T he
sa m e d a y th a t sh e f

iled h e r n o tice o f

a p p e a l, sh e c o n d iti o n a lly
acc ept ed the di str ictcour t ’ s r emi t t i turbyappendi ng the fol l ow i ng s t at ement : “I n t he eve ntthat the D i s t r i ctC our tw as
a c tin g p ro p e rly w ith in its p o w e r a n d ju risd ictio n in e n ter in g its O rde r of S ep tem b er 1 3 , 2 0 0 7 , w h ich is a su b ject of P lain tiff’s N o tic e o f A p p e a l .
. . P la in tif f h e re b y a c c e p ts t h e r e m ittit u r.” See E . D . Pa. D ocketN o. 71.38 W e di s m i s s ed C or t ez’ s appea l forl ack of j ur i s dic t i on b ec au se th e o rde r she ap p ea led w as n o t a fina l app ea lable o rde r. T her eaf t er , T r ans U ni on m oved for fi nal j udgm ent . T he di s t r i ct
cour t gr ant ed j udgm ent t o T r ans U ni on “[b] eca us e [Cort ez]
acc ept ed the r emi t t i tur . ” Cor t ez v . Tr an s U ni on LLC , C i v. N o. 0 5 -5 6 8 4 , 2 0 0 8 W L 1 9 4 4 1 6 0 , a t * 1 (E .D . P a . M a y1 , 2 0 0 8 ). T h is appea l and cr os s - appea l fol l ow ed. C or t ez c hal l enges t he
r emi t t i turt hatr educe d herpuni t i v e damages aw ar d, and Tra ns U ni on chal l enges t he di s t r i ctcour t ’ s deni al o f i t s m ot i on for j udgm entas a m at t er of l aw , as w el l as t he damages aw ar d that t he courtdi d appr ove. I I . THE F AI R CRE DI T R EP ORTI NG ACT “T h e . . . F C R A
. . . w as c raf ted to p rotec t con su m ers fr om t he tr ans m i s s i on of i nacc ur at e i nform at i on aboutthem, and t o es t abl i s h cr edi tr epor t i ng pr act i ces t hatut i l i ze a ccur at e,
r el evant , and curr ent i nform at i on i n a conf i dent i al and
r es pons i bl e m anner . ” G ui m ond v. Trans U ni on C r edi t

I nf o. C o. , 4 5 F . 3 d 1 3 2 9 , 1 3 3 3 (9th C ir
. 1 9 9 5 ) (citati o n s o m itted). C ongr es s i nt ended t o pr om ot e effi ci encyi n the nat i on’ s banki ng
s y s te m a n d to p ro te c t c o n s u m e r p ri v a c y . T RW I n c . v . An dr e ws ,39 53 4 U
. S
. 19 , 24 (2001 ) ( ci t i ng 15 U . S
. C
. § 16 81 (a) ). C on gress
a d d re ss e d th e l att er concern byi nc lu d in g p ro v isio n s in ten d e d “ to pr event co ns um er s fr om bei ng unj us t l ydamaged beca us e of i nacc u rate o r arbi t r aryi nform at i on i n a cr edi tr epor t . ” S. R ep. N o. 91 -517, at1 (196 9). C o n gress al so ho ped t o ad dress a
num berof re l at ed probl ems, i ncl udi ng “the i nabi l i t yatt i m es of th e c o n su m e r to k n o w h e is b e in g d a m a g e d b y a n a d v e rse c re d it
r epor t , ” the l ack of

“ac ces s t o t he i nform at i on i n [hi s ] fi l e, ” the “di ffi cul t yi n corr ect i ng i nacc ur at e i nform at ion , ” and “ get t i ng [ h is] v e rsio n o f

a leg iti m a te d isp u te re c o rd e d in
. . . [h is] c re d it f ile .” Id
. at3 ( 1969)
. “These cons um er o ri ent ed obj ect i ves
s uppor ta l i ber al cons t ruct i on of the F C R A , ” and a ny i nterpret at i on of thi s r em edial st atute m ust refl ecttho se
o b je c tiv e s . G ui m ond , 4 5 F .3 d a t 1 3 3 3
. In its c ro ss -a p p e a l, T ra n s U n io n f ir st a rg u e s th a t it s O F A C a ler t is n o t co v e re d b yth e F a ir C re d it R e p o rtin g A c t. Ac c o r d i n g t o T r a n s Un i o n , t h e F CR A d o e s n o t a p p l yt o OF AC i n f o r ma t i o n b e c a u s e t h e “ OFA C Sc r e e n ” i s n o t par t of a “cons um err epor t . ” Tran s U ni on B r . at18. I nas m uch as t hat cl ai m go es t o the val i dityof the j ury ’s verdi ct , w e w i l l fi rs tW e r evi ew t he deni al of Tra ns U ni on’ s m ot i on for 21 j u d g me n ta s a ma t t e ro f l a w de novo , “v iew in g th e e v id e n c e in t he l i ghtm os tfavor abl e t o t he pr evai l i ng par t y . ” A cum ed LLCv. A dvance d Sur

gi cal Ser vs . , I nc. , 561 F. 3d 199, 211 ( 3d C ir
. 2 0 0 9 ) (qu o tat ion o m itted). 40 d isc u ss T ra n s U n io n ’s c ro ss -a p p e a l. 21 A . R eas onabl e Procedures f or M ax i m um A ccurac y , 15 U . S. C . § 1 68 1e ( b) 1 5 U .S .C . § 1 6 8 1 e (b ) p ro v id e s in re lev a n t p a rt: “W heneve ra cons um err epor t i ng agenc ypr epar es a cons um er
r epor ti ts hal l fol l ow r eas onabl e pr ocedur es t o as s ur e maxi m um pos s i bl e ac cur acyof the i nform at i on conce r ni ng the i ndi vi dual aboutw hom t he r eportr el at es . ” A s not ed, t he j uryconcl uded t hat T r ans U ni on had br eac hed t he s t andar d of car e r equi r ed by § 1 6 8 1 e ( b )
. Ho we v e r , T r a n s Un i o n c l a i ms t h a ts i n c e t h e OF AC
a ler t is n o t co v e re d b y§ 1 6 8 1 e (b ), th e d istric t c o u rt e rre d in d e n y in g T ra n s U n io n ’s m o tio n f o r ju d g m e n t as a m a tte r o f la w . 1 5 U .S .C . § 1 6 8 1 a (d )(1 ) d e f in e s a c o n su m e r re p o rt, i n rel evan tpart , as: any w r i t t en, or al , orot hercomm uni cat i on of any i nform at i on bya cons um err eport ing agenc y b e a rin g o n a c o n su m e r’s c re d it w o rth in e ss , cre d it s t andi ng, cr edi tcapa ci t y , char act er , gener al r eput at i on, per s onal char ac te r i s t i cs , orm ode of l i v i n g whi c h i s u s e d o r e x p e c t e d t o b e u s ed or col l ect ed i n w hol e ori n partfort he purpo se ofT he s t atut e exe m pt s cert ai n r epor t s or 22 c o m m u n ic a tio n s th a t a re n o t r e le v a n t h e re . See 1 5 U .S .C . § 1 6 8 1 a(d )(2). W e u se “ c o n su m e r re p o rt” a n d “ c re d it rep o rt” 23 in ter c h a n g e a b ly . T h e re p o rt re f e rre d to a s “ c o n su m e r re p o rt” in th e sta tu te is m o re c o m m o n lyk n o w n a s a c re d it rep o rt. 41 serv ing as a fa ctor in es tablishing the c o n su m er’s el i gi bi l i t yfor
- - ( A ) cr edi tori ns ur ance t o be us ed p rim a rilyf

o r p e rso n a l, fa m ily , o r h o u s e h o ld p u rp o s e s . . . . 22 (em p h asis ad d ed ). T ran s U n ion ’s arg u m en t that the O F A C alert
s om ehow m anage s t o avoi d t he re ach of t he F C R A i gnor es t he br eadth of the l anguage t hatC ongr es s us ed i n d raf ti ng that
s t atut e. I ti s notcont es t ed thatt he cr edi t r epor t t hatT r ans U ni on
s e n tt o E l wa yS u b a ru wa s o th e r wi s e s u b j e c tt o t h e F CR A. I ndeed, s uch r epor t s ar e pr eci s el yw hatthe FC R A w as i nt ended t o cover . I n or der t o concl ude t hat t he O FA C al erti s nots ubj ect to th a t re m e d ial s tatu te e v e n th o u g h th e re st o f th e re p o rt c lea rly fal l s w i t hi n t he defi ni t i on of “cons um err epor t , ” w e w oul d have to c o n c lu d e th a t C o n g re ss d id n o t m e a n w h a t itsa id w h e n it
u n e q u iv o c a lly d e f

in e d “ c o n s u m e r r e p o rt ” t o in c lu d e “ a n y. . . comm uni cat i on of anyi nform at i on bya cons um err epor t i ng
a g e n c y .” 1 5 U .S .C . § 1 6 8 1 a (d )(1 ). T ra n s U n io n s e e k s to

23 avoi d t hi s r es ul tbyar gui ng thatt he O FA C al ert s w er e not“us edR eca l l t hatO FA C has pr ocedur es t o unbl ock funds 24 in th e c a se o f

m ista k e n id e n tity , 3 1 C .F .R . § 5 0 1 .8 0 6 , an d to h a v e a n a m e re m o v e d f ro m d e s ig n a te d lis ts , 3 1 C .F .R . § 501. 807. 42 o r ex p ec ted to b e u sed
. . . in es tablishing the c o n su m er’s el i gi bi l i t yfor .
. . cr edi t ” bec aus e, acc or di ng t o i t s agr eement
w i t h El w a ySub a ru, t he s c r e e n was t o b e us e d o nl yfo rU SA P A T R IO T A c t c o m p lia n c e . I d. ; s ee J .A . 5 6 8
. A s n o ted a b o v e, bu sin e s s e s in the U n it ed S tat es a re g en era ll yp roh ibit ed fr om deal ing w ith an y o n e li sted o n O F A C ’s S D N L is t. S ee , e.g ., 31 C
. F. R . § 536. 201 ( “[N ] o pr oper t yor i nt er es t s i n pr oper t yo f

a s p e c i a l l ydes i gnat ed nar cot i cs tr aff i cker t hatar e i n t he U ni t ed St at es . . . m aybe tr ans ferr ed, pai d,
ex p o rt e d , w ith d raw n o r oth erw ise d ea ltin.”). T hu s, i n m ost
ca ses, i t i s u n law fu l to e x te n d cre d itto a p erso n o n O F A C ’s S D N L ist. 24 T r ans U ni on i nvi t es us t o concl ude thati nform at i on t hat goes t o t he veryl egal i t yof a cr edi t t r ans act i on i s s om ehow not “a f act ori n es t abl i s hi ng t he co n su m er’ s el i gi bi l i t y. . . for
cr edi t . ” 15 U
. S. C
. § 1 6 81a( d) ( 1)
. I ti s di ffi cul tt o i m agi ne an i nqui r y m or e centr al t o a cons um er ’ s “el i gi bi l i ty ” forcr edi tt han
w hether fede r al l aw pr ohi bi t s ext endi ng cr edi t t o t hatcons um er43 i n t he fi r s ti ns t ance . T he appl i cabi l i t yo f t he FC R A i s not negat ed m er el y beca us e the cr edi t or/ deal er s hi p coul d have us ed t he O FA C Scr een t o compl yw i t h the U SA P A T R I O T A ct , as
w el l as deci di ng w hetheri tw as l egal t o ext end c redi tt o t he
co n su m er. T ra n s U n io n a lso re lies o n th e su b sc rib e r a d d e n d u m to its agr eement s w i t h cr edi t or s t o ar gue thati t s t erm s es t abl i s h that t he O FA C al er ti s notpar t of cr edi t r epor t s i t pr epar es underthe FC R A
. Pur s uantt o t hatagr eement , t he cr edi t or ors ubs cr i ber agr ees t o be “s ol el yr es pons i bl e fort aki ng anyac ti o n t hatm ay b e r e q u i r e d b yf

e d e r a l l a w a s a r e s u l to f a ma t c h t o t h e OF AC Fi l e, and s hal l notden yorotherw i s e t ake a nyadver s e ac t i on
a g a i n s t a n yc o n s u me rb a s e d s o l e l yo n T r a n s Un i o n ’ s OF AC A dvi s ors ervi ces . ” J
. A
. 568. W e ar e not per s uaded thatT r ans U ni o n ’ s p r i v a t e c o n t r a c tu a l a r r a n g e me n t s wi t h i t s c l i e n t s can al t er t he appl i cat i on of fe der al l aw , abs enta s t atut orypr ovi s i on
a llo w in g th a t r a th e r u n iq u e re s u lt. As d e s c r i b e d mo r e f u l l ya b o v e , th e “ S P E CI AL M E SSA G E S” s ect i on of Tra ns U ni o n ’s cr edi tr epor t s t hat cont ai n t he O FA C al ert s i s on the fi r s tpage bet w ee n the44 id e n tify in g in f

o rm a tio n a n d th e c o n su m e r’s c re d it sc o re a n d in th e sa m e f

o rm a tti n g a s th a t in f

o rm a tio n . T h u s, th e O F A C a ler ts al l ow t he cr edi t ort o s eaml es s l ydet erm i ne a c ons u m er’s eli g ibil ityfo r a loa n ev en b ef o re lo o k ing at th e c o n su m er’s
cr edi ts cor e. T ra n s U n io n a lso a rg u e s th a t, ev e n if th e O F A C a le r t is
cov ered byt he F C R A , the j ury ’s verdi ctcann ot s t and becau se t he evi dence di d not al l ow a r eas onabl e fa ctfi ndert o concl ude t hati tw as negl i genti n deal i ng w i t h C or t ez, as re qui r ed for l i abi l i t yunder15 U
. S. C
. § 1681e( b)
. W e di s agr ee. B . N egl i gence A ccor di ng t o T r ans U ni on, i t s cr edi tr epor tcont ai ned the
m o st a c c u ra te in f

o rm a tio n p o ss ib le b e c a u se T ra n s U n io n sim p ly i ncl uded the i nform at i on furni s hed byt he governm ent . H ence , itw as n o t rea so n ab le to ex p ec t T ran s U n ion to d o an ything m o re th a n it d id to in su re th e a c c u ra c yo f th e in f o rm a tio n it so ld in its
cr edi tr epor t . T r ans U ni on ar gues t hati tm ere lyi nform ed the deal er s hi p t hatC or t ez w as a poss i bl e m at ch w i t h s om eone l i s t ed on O FA C ’ s SD N L is t , and i tm et§ 1681e( b) ’ s r equi r ementof
m axi m um pos s i bl e ac cur acybeca us e “mat ch” c onnot es45 “ p o s s ib le m a tc h ” ra th e r t h a n “ e x a c t m a tc h .” N e g l i g e n t noncompl i ance w i t h § 1681e( b) , cons i s t s of t he fol l ow i ng four
e l e me n t s : “ ( 1 ) i n a c c u r a t e i n f o r ma t i o n was i n c l u d e d i n a
c o n su m e r’s c re d it rep o rt; (2 ) t h e in a c c u ra c yw a s d u e to d efendant ’ s fai l ur e t o fol l ow r eas onabl e pr ocedur es t o as s ure
m a x i m u m p o s s i b l e a c c u r a c y; ( 3 ) t h e c o n s u m e rs u f f e r e d i n j u r y; and ( 4) t he cons um er ’ s i nj uryw as caus ed by t he i ncl us i on of the i nacc ur at e entr y . ” P hi l bi n v. Trans U ni on C or p. , 101 F. 3d 957, 9 6 3 (3 d C ir . 1 9 9 6 ). In re jecti n g T ran s U n ion ’s claim an d u p h o lding the j u ry ’s
v erd ict , the d istri ct co u rtco rrectl y co n clud ed that T ran s U n ion ’s
us e of the O FA C al ertcr eat ed the i m pr essio n tha tC or t ez w as actual l yt he per s on named on O FA C ’ s SD N L i s t . W h il e the
w or d “mat ch” maybe amb i guous i n s om e ci r cumst ance s , the j ur yw as ent i t l ed t o vi ew T r ans U ni on’ s act i ons i n t hei rpr oper
c o n t e x t . T r a n s Un i o n p r o v i d e d t h e c r e d i tr e p o r twi t h th e OF AC al er t s t o t he dea l er sh i p i n r es pons e t o r ece i vi ng i dent i fy i ng in f o rm a tio n a b o u t a s p e c if ic c o n su m e r, C o rte z . T h e d e a ler sh ip
r el i ed upon t h e infor m at i on aboutC or t ez thatT r ans U ni on prov i ded t o det erm i ne w hetherornott o fi nance hercar46 pur chas e. T he al er ton C or t ez’ s cr edi tr epor tdoes not s t at e that th e n a m e s ar e “ sim ilar” to so m e o n e o n th e S D N L ist o r th a t a
m at ch i s “pos s i bl e. ” I tr epor t ed a “mat ch” w i t h s om eone on the S D N L ist. T hus , t he j ur y and di s t r i ct cour t corr ect l ydet erm i ned that T ran s U n ion co u ld h av e tak en rea so n ab le m ea su res to assu re
m a x im u m p o ss ib le a c c u ra c y o f its c re d it re p o rt w ith re sp e c t to th e se a ler ts. “ R e a so n a b le p ro c e d u re s a re th o se th a t a r e a so n a b ly pruden tperson w ou l d u nd ert ake u nd er the cir cu m stan ces. Ju d g ing the re aso n ab lene ss o f a cre d itrep o rt in g ag en cy ’s pr ocedur es i nvol ves w ei ghi ng t he pot ent i al harm fr om i nacc ur acyagai ns tt he bur den of s afe guar di ng agai ns ts uch i nacc ur acy . ” P h ilb in , 10 1 F
. 3d at96 3 (al t erat io n s, qu otat i on s, and ci t at i ons om i t t ed)
. I ti s i m por t antt o note t hat§ 1681e( b)
er ect s a s t andar d of “maxi m um pos s i bl e ac cu racy . ” That
r equi r es m or e than mer el yal l ow i ng forthe p os s i bi l i t yof
a c c u ra c y . I n P h ilb in , t he pl ai nt i ff’ s cr edi t r epor t cont ai n ed a li en th a t ac tu a llyb e lo n g e d to h is f a th e r. 1 0 1 F .3 d a t 9 6 0 . H e w ro te t o t h e c r e d i t r e p o r t i n g a g e n c y , whi c h c o r r e c t e d t h e e r r o r and47 add ed a n otat i on t o the cr editreportst at i ng , “D o n ot confu se
w i t h fatherJ ames P h i l bi n Srdi ffe r entaddr es s di ffe r ents oci al
s ecur i t yn u m b er.” I

d. T w o and a ha l f y ear s l at er , the pl ai nt i ff
a p p lie d f o r a n d w a s d e n ie d c re d it a n u m b e r o f tim e s . I d. at960- 61. T he pl ai nt i ff then r eques t ed hi s cr edi tr epor tfr om T r ans U n io n C o rp . (“ T U C ” ) a n d T R W C re d e n tia ls , In c . Id
. A t961. T h e T R W re p o rt h a d n o e rr o rs . Id
. W hen he f i nal l yobt ai ned th e re p o rt f

ro m T U C , it s till n o te d th e ta x lie n . Id
. A ft erfi l i ng
s ui t , t he pl ai nt i ff w as agai n deni ed cr edi tand l earned thatt he t ax l i en w as s t i l l on hi s cr edi tr epor t , al ong w i t h o thererr oneous in f o rm a tio n . Id
. In re v ersing the d is tr ictco u rt ’s gra n t of su m m ary j u d g me n ti n f

a v o ro f T UC o n P h i l b i n ’ s § 1 6 8 1 e ( b ) c l a i m, we h eld th at an u n sp ec ifi ed “q u an tum o f e v iden ce ” b ey o n d a m ere in a c c u ra c yis s u f

f icie n t f o r a ju ryto f

in d n e g li g e n t f

a ilu re to
assu re m axi m um pos s i bl e ac cur acyunl es s a cr edi tr epor t i ng
a g e n c yc o n v in c e s th e ju ry o th e rw is e . I d. at96 5. W e al so
re itera ted th a t in c o n sis ten c ies b e tw e e n tw o d if f e re n t re p o rts
c o n c e rn in g a sin g le c o n su m e r a re su f f icie n t to m e e t th is
s ta n d a rd
. I

d. at 96 4 , 9 6 6
. C o rt ez ’s ev iden ce is e v e n str o n g er.48 H er e, t he j ur ycoul d cons i derevi dence of an i ncons i s t ency betwee n i d e n t i f

y i n g i n f o r ma t i o n p r o v i d e d b yTr a n s Uni o n , f or
e x a mp l e , Co r t e z ’ s b i r t h d a t e , a n d t h e i n f o r ma t i o n o n t h e S DN L i st. T he j ur ycoul d r eas onabl yconcl ude thatT r ans U ni on
c o u ld h a v e tak e n ste p s to m in im ize th e p o ss ib ili tyth a t itw o u ld
er r one o u s l y p l a c e a n OFA C a l e r t o n a c r e d i t r e p o r t , s u c h as chec ki ng t he bi r t h dat e of the cons um er agai ns t t he bi r t h dat e of th e p e rso n o n th e S D N L ist. M or eover , t he di s t i nct i on betw een “ acc ur acy ” and “maxi m um pos s i bl e ac cur acy ” i s notnear l yas s ubt l e as m ayat fi r s tappea r , i ti s i n fac tqui t e dr amat i c. For exampl e, i n P i nner
v. Schm i dt , 8 0 5 F .2 d 1 2 5 8 (5 th C ir. 1 9 8 6 ), th e C o u rt o f A p p e a ls forthe Fi fth C i r cui tdes cr i bed t hat di s t i nct i on as t he di ffe r ence b etw ee n rep o rt ing that “a p erso n w as ‘inv o lved ’ i n a c red itca rd
s ca m” a n d r e p o r t i n g t h a t t h e c o n s u me r “ was i n f a c t o n e o f

t he vi ct i m s o f the sca m . ” I d. at1263. T he form ers t at ementw as undoubt edl yt rue as t he cons um erhad been “inv ol ved” i n t he
sca m . Itw as a lso w o ef

u ll ym isl ea d ing b ec au se i t d id n o t i n fo rm peopl e thats he w as i nvol ved as a vi ct i m of t he sca m , and notas the p erp etrator.49 M oreover , t he r eas onabl enes s of a c r edi tr epor t i ng agenc y ’ s pr ocedur es i s “norm al l y a quest i on for t r i al unl es s t he
r eas onabl enes s orunr eas onabl enes s of t he proc edur es i s bey ond ques t i on. ” Sar verv. E xper i an I

nf o. Sol ut i ons , 390 F. 3d 969, 971 ( 7t h C i r . 2004)
. I n P h ilb in , w e li st ed thr ee di ffe r ent appr oache s that var i ous court s have t aken i n det erm i ni ng i f a p lai n ti ff h as in tr o d u ce d su ff

ici en t evid en ce to rea ch the ju ry
un der § 16 81 e(b)
. T ho se approach es ar e: “t hat a pl ai nti ff m ust p ro d u c e s o m e e v id e n c e b e y o n d a m e re in a c c u ra c yin o rd e r to demonstr at e the fa i l ur e t o fol l ow r eas onabl e proc edur es ; thatthe j ur y m ay i nfer t he fai l ur e t o fol l ow r eas onabl e pr ocedur es fr om t he mer e fa ctof an i n ac cu r acy ; ort hatupon demonstr at i ng an i nacc ur acy , t he bur den s hi ft s t o t he def endantt o pr ove t hat
r eas onabl e pr ocedur es w er e fol l ow ed. ” P h ilb in , 101 F. 3d at 9 6 5 . W e did not have to decide up on anyon e app roach in P h ilb in beca us e the pl ai nt i ff ha d pr odu ce d evi dence s uffi ci ent t o m eetanyof the t hree st and ards. Id
. at 966. T he same i s t rue her e. T ran s U n ion ’s ow n rec o rds sh o w ed that C o rt ez w as b o rn i n M ayof 1944 and he rm i ddl e nam e w as “J ean. ” J. A
. 526- 527.50 T he per s on on O FA C ’ s SD N L i s tw as named Sandr a Q uint ero C o rte s a n d w a s b o rn in J u n e o f 1 9 7 1
. I d. W ith in T ran s U n ion ’s
o w n re c o rd s th e re e x iste d a lar g e d is c r e p a n c yin re g a rd to C or t ez’ s l as tname, m i ddl e name , an d even he rdat e of bi r t h. T her e w er e ot h er di s cr epanc i es as w el l , i ncl udi ng ci t i zens hi p. D e sp ite th o se d istin c tio n s, th e c re d it rep o rt T ra n s U n io n se n t to t h e d e a l e r s h i p s t a t e d : “ I NP UT NAME MATC HE S NAME ON T H E O FA C D A T A B A S E . ” Tra ns U ni on i ncl uded that “w arni ng” eve n t ho u g h ithad i nform at i on thats houl d have
m ad e itap p are n t th at th e O F A C alert ha d n o p lace in C o rt ez ’s
c re d it r e p o rt . T her e ar e, of cour s e, i nher entdanger s i n i n clud ing a ny i nform at i on i n a cr edi tr epor tt hat a cr edi tr epor t i ng agenc y cannotconfi r m i s r el at ed t o a part i cul arconsum er . Such i nform at i on i s near l yal w ay s “us ed orexpec t ed t o be us ed or coll ect ed in w ho l e or i n p artfor the p urpose o f ser ving as a f a c to r in e s ta b lis h in g th e c o n s u m e r’ s e lig ib ility f o r . . . c re d it.” 15 U
. S. C
. § 1681a( d) ( 1)
. A l l ow i n g a credi tagenc yt o i ncl ude
m isl ea d ing inf

o rm ati o n as c av ali erlyas T ran s U n ion d id h ere
n eg ates the p rotec ti o n s C o n g ress w as try ing to af fo rd c o n su m ers51 a n d len d in g in stitu tio n s in v o lv e d in c re d it tra n sa c tio n s w h e n it
e n a c te d th e F C R A
. C ongr es s s ur el ydi d noti nt ent i onal l yw eave an exc ept i on i nt o t he fa br i c o f the FC R A thatw oul d des t r oyi t s r emedi al
s cheme byal l ow i ng a cr edi tr epor t i ng agenc yt o es cape
r es pons i bi l i t yfori t s car el es s nes s w heneve rm i s l eadi ng i nform at i on fi nds i t s w ayi nt o a cr edi t r epor t t hr ough t he age ncy of a t hi r d par t y . T hus , T r ans U ni on’ s ar gum ent t hat i tdoes not
co n t r o l t h e a c c u r a c y o f t h e SDN Li s t i s a s mi s l e a d i ng as t he i nform at i on i tpr o v ided aboutC or t ez. T r ans U ni on does not k n o w f o r su re th a t a c o n su m e r h a s h a b itu a llyb e e n d e lin q u e n t in p a y in g h is/h e r c re d it c a rd s b ill s, o r th a t s/h e d o e s n o t p ro m p tly p a yo bli gati on s t o m erchants or t axing autho ri t i es. R at her, it col l ect s s uch i nform at i on fr om t he pr i m arys our ces , s um m ar i zes i t , a n d r e p o r t s i t t o t h o s e who wi l l s u b s e q u e n t l y r e l y o n t he
res ult i ng report s in m a king con sum er cr editdecis i on s. T her efor e, t he O FA C i nform at i on i s nots ubs t ant i al l ydi ffe r ent fr om al l ot heri nform at i on i n a cr edi t repor t , i ncl udi ng in f o rm a tio n ta k e n f

ro m p u b lic re c o rd s . T r a n s U n io n re m a in s re sp o n sib le f o r th e a c c u ra c yin itsSee a l so C ous i n v. Trans U

ni on C or p. , 246 F. 3d 359, 25 368 ( 5t h C i r . 2001) ( w hen a c r edi t orcont i nues t o pr ovi de a cons um err epor t i ng agenc yi nform at i on abouta cons um erthat t he age ncyhas det erm i ned t o be i nacc ur at e, under§ 1681e( b) “ it i s in c u m b e n t o n th e c o n su m e r re p o rtin g a g e n c yto p e rm a n e n tly d e le te a n d c lo a k th e e rr o n e o u s in f o rm a tio n ” ). 52 re p o rts u n d e r th e F C R A a n d it ca n n o t es c a p e th a t re sp o n sib ili ty
as e asil yas i t su g g ests h ere . C o n g ress clearly inten d ed to en su re th a t cr e d it rep o rtin g a g e n c ies e x e rc is e c a re w h e n d e c id in g to
asso ciate inf

o rm a tio n w ith a g iven co n su m er, an d the re co rd
c lea rlysu p p o r ts th e ju ry ’s d e ter m in a tio n th a t T ra n s U n io n d id
n o t e x e rc is e s u f

f ic ie n t c a re h e re . S e e P h ilb in , 101 F. 3d at966;
s e e a l s o S t e war tv . Cr e d i tBur eau , I nc. , 7 3 4 F . 2 d 4 7 , 5 2 ( D. C. C i r . 1984) ( “C er t ai nl y , i ncons i s t enci es w it h in a s i ngl e fi l e or
re p o rt in v o lv in g a n in a c c u ra c ya s f u n d a m e n tal a s a f

a lse ly
r epor t ed w age e arnerpl an, as w el l as i ncons i s t enci es betw een t w o fi l es or r epor t s i nvol vi ng l es s fundament al i nacc ur aci es , can pr ovi de s uffi ci entgr o u n d s for i nferr i ng thatan age ncyact ed
n eg li g en tl yin f

ail ing to v erifyinf

o rm ati o n . ”). 25 C . T rans U ni on’ s L i abi l i t y U nder 15 U . S. C . § 1681g 1 5 U . S
. C
. § 1 6 8 1 g (a) stat es i n relev an t part th at “[ e]v ery
cons um er r epor t i ng agenc ys hal l , upon r eques t , . . . cl ear l yand
ac cu ratelyd is c lo s e to th e c o n su m er: (1) A l li nf or m at i on i n t he53 co n su m er’s fi le a t th e ti m e o f th e re q u est. ” (e m p h asis ad d ed ). H er e, t he j ury fo u n d thatT r ans U ni on w i l l ful l yvi ol at ed § 1 6 8 1 g , an d T ra n s U n io n a p p e a ls th e d istric t co u rt’s d e n ial o f its
m oti o n fo rj udgm entas a mat t erof l aw on C or t ez’ s § 1681g
c l a i m. T ra n s U n io n c o n c e d e s th a t C o rte z re q u e ste d h e r c re d it
r epor ton m ul t i pl e occ as i ons ; nevert hel es s , i t fa i l ed t o pr ovi de h e r w ith th e H A W K a n d O F A C a ler t in f o rm a tio n o n h e r re p o rt. H ow ever , T r ans U ni on agai n m akes an ar gum ents i m i l art o t hat d i s c u s s e d a b o v e . I ta r g u e s th a tt h e O F A C a n d H A WK i n f o r ma t i o n i s n o tp a r to f

t h e c o n s u me r ’ s “ f

i l e ” u n d e rt h e F CRA
a n d th a t, i t w a s n o t re q u ire d to d isc lo se th e in f o rm a tio n to C or t ez. T h e F C R A d e f

in e s “ f ile” w h e n u se d in c o n n e c tio n w ith i nform at i on on any cons um er , as “al l of the i nform at i on on t hat
cons um err ecor ded and r et ai ned bya cons um err epor t i ng agenc y
re g a rd le s s o f

h o w th e in f

o r m a t i o n is s to re d .” 1 5 U .S .C . § 1681a( g)
. T r ans U ni on att empt s t o avoi d t he obvi ous r eac h of t hat l ang uag e byrel y i ng on the f a c t th atthe S D N L i st i nform at ion w as notpartof i t s dat abas e; r ather , as expl ai nedC o rte z a rg u e s th a t T ra n s U n io n f a iled to m a k e th is 26 a rg u m e n t in th e d is tr ic t c o u rt a n d th a t it is th e re f o re w a iv e d
. H ow ever , bas ed upon ourr evi ew of the r ecor d, w e bel i eve the a rg u m e n t w a s a d e q u a telyp re se n ted to th e d istric t co u rt. W e e x p re ss n o o p in io n o n w h e th e r th e ter m “ f ile” is 27 l i m i t ed t o t he i nform at i on a cr edi tr epor t i ng agenc yi ncl udes in the cre d itrep o rt . W e n o te, h o w ev er, th at th e term 54 e a r l i e r , t h a t i n f

o r m a t i o n w a s s e p a r a t e l y m a i n t a i n e d b y A c c u i t y. A ccor di ng t o T ran s U ni on, t he i nform at i on s houl d notbe
cons i der ed partof the cons um er ’ s fi le f o r purpos es of the F C R A
. N o t su rprisi n g ly , T ran s U n ion cit es n o ca ses to su p p o rt

26 t hi s ar gum ent . T he ar gum entr equi r es u s to i gnor e thatt he FC R A s peci fi cal l ypr ovi des thatthe dutyof di s cl os ur e appl i es t o “i nform at i on o n [a ] c o ns um er. . . r egar dl es s of how t he i nform at i on i s s t or ed. ” 15 U
. S. C
. § 1681 a(g ). W e do not bel i eve thatC ongr es s i nt ended to al l ow cr edi tr epor t i ng compani es t o es cape t he di s cl os ur e r equi r ementi n § 1681a( g) by sim p lyc o n tra c tin g w ith a th ird p a rty to sto re a n d m a in tain i nform at i on t hatw oul d otherw i s e cl ear l ybe p artof the
c o n s u m e r’ s f

ile a n d is in c lu d e d in a c re d it r e p o rt . C o n g re ss c lea rly in ten d e d th e p ro tec tio n s o f th e F C R A to
a p p lyto a ll in f

o rm a tio n f

u rn ish e d o r th a t m ig h t b e f u rn ish e d in
a c o n su m e r re p o rt. G i l l es pi e v. Trans U

ni on C or p. , 482 F. 3d 27“con sum er r epo rt ” i s al so def i ned i n § 16 81 a and i ti s, thu s, u n lik e lyth a t C o n g re ss in ten d e d th e tw o ter m s to m e a n e x a c tly th e s a m e th in g . Se e Nunna l l y v . Equi f ax I nf o. Se r v s . , LLC , 4 5 1 F . 3 d 7 6 8 , 7 7 2 -73 (11 th C ir
. 2 0 0 6 ). C om m ent arydoes nothave the for ce of a r egul at i on 28 a n d is n o t b in d in g , a n d w e d o n o t r e g a rd it a s s u c h
. In g en era l, a c red itrep o rt ing ag en cyca n n o t r ep o rt 29 negat i ve i nform at i on forl ongerthan s even y ear s under15 U .S .C . § 1 6 8 1 c . 55 907, 909 ( 7t h C i r . 2007)
. M or eover , as t he c o u rt i n G ill e sp ie
n o ted , “‘f

ile’ d e n o tes a ll i n f

o rm a tio n o n th e c o n su m e r th a t is
r ecor ded and r et ai ned bya cons um err epor t i ng agenc yt hat
m igh t b e fu rnish ed , o r ha s b ee n fu rnish ed , in a c o n su m er rep o rt on t hatcons um er . ” I

d. (qu o ti n g 1 6 C
. F . R . p t. 6 0 0 , ap p . § 6 0 3 ). 28 I n G ill e sp ie , the c o u r t co n sid e re d w h e th e r a c re d it
r epor t i ng agenc y w as obl i gat ed t o furni s h t he d ate of deli nq uen cyof a c redi taccou nt t o a co nsum er w h o m akes a req u est u n d er § 1 6 8 1 g . C o n g ress so u g h t to p roh ibitco n su m ers fr om bei ng hounded bys t al e i nform at i on byl i m i t i ng t he amount of ti m e old deb t s can be report ed un der the F C R A
. C redi t ors, 29 t her efor e, have t o i ncl ude a “ dat e of de l i nquencyorpur ge dat e”
w h e n r e p o r t i n g a c c o u n ti n f o r m a t i o n t o a c r e d i ta g e n c y. G ill e sp ie , 482 F. 3d at908. T he cr edi tr epor t i ng agenc yus es t hat56 dat e fori nt ernal purpos es t o det erm i ne w hen the i nform at i on
s houl d be pur ged fr om t he dat a thatw i l l appea ron the
c o n s u m e r’ s c re d it r e p o rt . Id
. H ow ever , cr edi tr epor t i ng
a g e n c ies d o n o t u su a llyin c lu d e th a t d a te o n th e c re d it rep o rts p ro v id e d to p o te n tia l c re d i t o r s o r to c o n s u m e rs . I d. T he pl ai nt i ffs i n G ill e sp ie ar gued thatthe “fi l e” t hey r ece i ved fr om Tr a n s Un i o n v i o l a t e d t h e d i s c l o s u r e r e q u i r e me n t s o f t h e F CRA b e c a u s e i t d i d n o t i n c l u d e t h e “ p u r g e d a t e. ” Id
. T heycl ai m ed t hat t he del i nquency dat e w as i ncl uded i n t he defi ni t i on of “f i l e”
co n tai n ed in 1 5 U . S
. C
. § 1 6 8 1 a(g ). In r ej ect i ng t hat cl ai m , t he cou rt reas on ed that“C on gress
w ant ed cons um er s t o r ec eive exact l yw hat[the pl ai nt i ffs ] got from T rans U nion— com plet e cop i es of t heircon sum er r epo rt s,
n o t th e ir e n tire f

iles in w h a tev e r fo rm m a in tain e d b yth e [ c re d it rep or t i ng agenc y ]
. ” I

d. a t 9 0 9
. Si n c e t h e p u r g e d a t e was an i nt ernal r ecor d- keepi ng i t em, us ed onl yt o d eter m i ne w hen t r ans acti o ns i n a cons um er ’ s hi s t orys houl d no l ongerbe
r epor t ed t o t hos e r eques t i ng cr edi tr epor t s , th e co u r thel d t hat C ongr es s di d noti nt end t o i ncl ude i tw i t hi n the def i ni t i on of “fi l e. ” I d. at910. T hati s nott he s i tuat i on h ere b eca us e theG i l l es pi e also cit ed the S en ate C o m m ittee R ep o rt 30 di s cus s i ng t he 1996 amendm ent s t o t he FC R A , w hi ch change d t he r equi r ementi n § 1681g( a) ( 1) fr om pr ovi di ng the “natur e and s ubs t ance ” of the i nform at i on i n a cr edi tr epor t i ng a g e n c y ’s f

ile to “ a ll o f

th e in f o rm a tio n ” in th e f

ile
. See G ill e sp ie , 482 F. 3d at909. A ccor di ng t o t he R epor t , “The C om m i t t ee i nt end[e d] thi s l anguage t o ens ur e thata cons um er w i l l r ece i ve a c opyof thatcons um er ’ s r epor t , r atherthan a s um m aryof the i nform at i on cont ai ned ther ei n. ” S. R ep. N o. 1 0 4 -18 5 , at 41 (19 9 5 ). 57 O FA C al er t s w er e fa r m or e t han a m er e i nt ernal r ecor d- keepi ng
me c h a n i s m. 30 W e h o ld th a t in f

o rm a tio n re latin g to th e O F A C a ler t is p a r to f t h e c o n s u me r ’ s “ f

i l e ” a s d e f

i n e d i n t h e F CR A. A ccor di ngl y , w e af

fi r m t he di s t r i ct cour t ’ s or derdeny i ng T r ans U n i on’ s m ot i on forj udgm entas a mat t erof l aw on C o rt ez ’s claim u n d er 1 5 U . S
. C
. § 1 6 8 1 g b ase d u p o n T ran s U n ion ’s
c o n ten tio n th a t th e O F A C a ler t is n o t p a r t o f a c o n su m e r’s f

ile
a n d n o ts u b

j e c tt o t h e r e p o r t i n g r e q u i r e me n t s o f th e F CR A. D . R ei nves t i gat i on, 15 U . S. C . § 1681i 1. R eas onabl e R ei nves t i gat i on , 15 U . S. C . § 1681i ( a) U nder15 U
. S. C
. § 1681i ( a) ( 1) ( A ) , cr edi tr epor t i ng agenc i es m us tpr om p t l yr ei nves t i gat e anyi nform at i on i n a
co n su m er’s file th at is d ispu ted b ya c o n su m er a n d eith er rec o rd1 5 U .S .C . § 1 6 8 1 i(a )(1 )(A ) sta tes , in r e lev a n t p a rt: 31 [I ] f the compl et enes s oraccu rac yof anyi t em of in f o rm a tio n c o n tain e d in a c o n su m e r’s f il e a t a cons um err eport i ng agenc yi s di s put ed byt he c o n s u m e ra n d t h e c o n s u m e rn o t i f i e s t h e a g e n c y .

. . o f s u c h d i s p u t e , t h e a g e n c y s h a l l , f r ee of c h a rg e , co n d u c t a r e a so n a b le r e in v e stig a tio n to d e ter m in e w h e th e r th e d isp u ted in f o rm a tio n is i nacc ur ate a nd r ecor d t he curr ents t atus of the di s put ed i nform at i on, or del et e the i t em from t he fi l e i n acc or dance w i t h par agr ap h ( 5) , befor e the end of the 30- dayper i od begi nni ng on t he dat e on w hi ch the agencyr ece i ves t he not i ce of t he d ispu te fro m the c o n su m er o r resell er. 58 the c u rren t st atus o f th e inf o rm ati o n in dispu te o r d elete i t. In 31
or derforC or t ez t o es t abl i s h t hatT r ans U ni on i s l i abl e forfai l i ng t o rei nv est i gate a disp u t e un der that pr ov i si on , she m ust
e sta b lish th a t T ra n s U n io n h a d a d u tyto d o so , an d th a t itw o u ld h a v e d isc o v e re d a d isc re p a n c y h a d it u n d e rta k e n a r e a so n a b le inv esti g atio n . T h ere fo re, w e m u st de term ine w h ethe r th e jury coul d r eas onabl yhave c oncl uded t hat T r ans U ni on w oul d have d i s c o v e r e d t h e i n a c c u r a c yi n Co r t e z ’ s r e p o r t– i
. e . , t h e OF AC al er t – “i f i t had r eas onabl yi nves t i gat ed the mat t er . ” C us hm an
v. Trans U

ni on C or p. , 1 1 5 F . 3 d 2 2 0 , 2 2 6 (3d C ir
. 1 9 9 7 ). A l t hough t he par amet er s of a r eas onabl e i nves t i gat i on
w i l l oft en depe nd on the ci r cumst ance s of a pa r t i cul ardisput e,59 i ti s cl ear t hat a r eas onabl e r ei nves t i gat i on m us tm ean mor e than
s i m pl y i ncl udi ng publ i c document s i n a cons um er r ep o rt or
m a k i n g o n l y a c u r s o r y i n v e s t i g a t i o n i n t o t h e r e l i a b i l i t yof in f o rm a t i o n th a t is re p o rt e d to p o te n tia l c re d ito rs . I d. at225. R a th e r, if th e a g e n c yd e ter m in e s th a t th e in f o rm a tio n is i nacc ur at e, i ncompl et e, orcannotbe ver i fi ed, i tm us tdel et e or
m odi fyt he i nform at i on and not i fythe pr ovi derof the i nform at i on t hatt he i nform at i on has b ee n m odi fi ed ordel et ed from t he consum er’ s fi l e. 15 U . S
. C
. § 1 68 1i( a)( 5)( A ). C on gress t houghtt hi s pr ot ect i on s o vi t al t o the s t atut orys cheme of the F C R A th a t itin c lu d e d a sp e c if ic p ro v is io n re q u irin g c re d it
r epor t i ng agenci es t o m ai nt ai n pr ocedur es t o pr eventthe
re a p p e a ra n c e o f in f

o rm a tio n th a t is d e lete d b e c a u se it i s
m is le a d in g o r i n a c c u ra te . 1 5 U .S .C . § 1 6 8 1 i( a )( 5 )( c ). T r ans U ni on fi r s tar gues that i ts houl d nothave be en li ab le under§ 1681i beca us e the O FA C al erti s notpar tof C or t ez’ s “fi l e. ” W e have al r eady expl ai ned w hyt hatcont ent i on
m u s t b e re

je c te d
. T r ans U ni on admi t s t hat i t per form ed no r ei nves t i gat i on to d eterm ine w h ethe r C o rt ez w as th e p erso n n am ed in O F A C ’s60 SD N L i s t . T r ans U ni on conce des t hati tdi d notl ook bey ond t he
n am e o n that L istb ef o re rep o rtin g a “m atch ” o n C o rt ez ’s
cons um err epor t . H ow ever , i tatt emp ts to e s cape l i abi l i t yby
ar gui ng t hateven i f § 1681i do es appl y , anyr ei nves t i gat i on
w o u ld h av e b ee n m ea n ing less b ec au se i t can n o t cha n g e O F A C ’s S D N L is t. See T rans U nion B r. at 27
. T hat argu m e n t is d isin g e n u o u s a t b e st. T ra n s U n io n c o n tro ls th e in f o rm a tio n it pl ace s on a cons um er ’ s cr edi t r epor t . C or t ez di d notas k T r ans U ni on t o al t erO FA C ’s S D N L i s t . R ather , s he mer el yas ked T r ans U ni on nott o as s oci at e thati nform at i on w i t h herand i n f o r me d t h e c o mp a n y t h a ts h e wa s n o tt h e p e r s o n t h e OF AC al er tref erred t o. She m ade thatr eques tfourt i m es - once by t el ephone a nd t hr ee t i m es i n w r i t i ng. T r ans U ni on r es ponded by d e n y in g th a t th e in f

o rm a tio n w a s o n h e r cre d it re p o r t. F u rth erm o re, on e o f T ran s U n ion ’s c u stom er se rvice m an ag ers tes tifie d a t trial th a t itis T ra n s U n io n ’s p o licyn e v e r to i nves t i gat e O FA C al er t s , atl eas tnot unt i l for ced t o do s o bythe
c o n s u m e r b ri n g in g a la w s u it. C or t ez , 2 0 0 7 W L 2 7 0 2 9 4 5 a t * 2 ; s ee al s o J . A
. 203. T hati s w hathappene d her e. A ft erC or t ez
s ued, T r ans U ni on bl ocked t he O FA C A l ert fr om appea r i ng on61 h e r c re d it r e p o rt . J .A . 1 8 3 -8 4
. S im ilarly , T ra n s U n io n a rg u e s th a t it sh o u ld n o t b e liab le
u n d e r t h e F CR A b e c a u s e t h e r e s p o n s i b i l i t y f o rUS A P AT RI OT A c t co m p lian c e f

a lls o n p o ten tial c re d ito rs a n d n o t cr e d it
re p o rtin g a g e n c ies . W e a re w e ll aw a re th a t a n y o n e in v o lv e d in fi n a n c i a l t r a n s a c t i o n s h a s s i g n i f i c a n tr e s p o n s i b i l i t i e s u n d e rt he U SA PA T R I O T A ct , as not ed above
. H ow ever , not hi ng i n t he U SA PA T R I O T A cts ugges ts tha tC ongr es s i nt ended the obl i gat i ons ar i s i ng under t hat A ct t o i m m uni ze c r edi tr epor t i ng agenc i es from dut i es t heyw oul d ot herw i s e have undert he FC R A
. O nce Cort ez di s put ed the ac cur ac yof the i nform at i on in T ra n s U n io n ’s c re d it rep o rt, T ra n s U n io n w a s o b lig a ted to
r ei nves t i gat e thati nform at i on. T he cardeal er ’ s r es pons i bi l i t i es undert he U SA PA T R I O T A ct ar e s i m pl yi r r el evantt o T r ans U ni on’ s dut yunder t he F C R A ; t he di s t r i ctcour tr ecogni zed that
w hen i tdeni ed T r ans U ni on’ s m ot i on forj udgm entas a mat t er
o f l a w. 2. F ai l ure t o N ot e D i s pute , 1 5 U . S . C . § § 1 6 8 1 i( b ) an d (c). 15 U
. S. C
. § 1681i s et s for t h a fa i r l ys peci fi c pr oces s for d is p u tin g in f

o rm a tio n in a c re d it r e p o rt . A s d is c u s s e d a b o v e , aT he cr edi tr eport i ng agenc ym ayal s o det erm i ne that 32 th e d is p u te is f

ri v o lo u s o r i rr e le v a n t u n d e r 1 5 U .S .C . § 1681i ( a) ( 3) , butt hatpr ocedur e i s notr el evanther e. 62 cons um erm us tfi r s ti nform t he cr edi tagenc yt hats /he di s put es t he i nform at i on. 15 U
. S. C
. § 1681i ( a) ( 1)
. T he cr edi tr epor t i ng agenc ym us tr ei nves t i gat e pr om pt l y bas ed on t hatdi s put e. T he agenc ym us tt hen appr opr i at el yr es pond t o the di s put e bas ed on t he r es ul t s o f i t s r ei nves t i gat i on. T hi s i ncl udes del et i ng or
m o d ify ing d ispu ted i n fo rm ati o n w h en ap p rop ri ate. I d. § 1681i ( a) ( 5)
. T he cr edi tr epor t i ng agenc ym us tal s o not i fyt he

32
c o n su m e r p ro m p tlyo f th e re su lts o f

th e r e in v e stig a tio n in
w ri tin g . Id
. § 1681i ( a) ( 6)
. T he mi ni m um cont ent s of that not i ce a r e pr es cr i bed bythe s t atut e. A s r el evanther e, the not i ce
m ust i nclude: “(i ) a st at em ent t hat t he r ei nv est i gati on is compl et ed; ( i i ) a consum err eportthati s bas ed upon the
cons um er ’ s fi l e as t hatfi l e i s r evi s ed as a re su l tof the
r ei nves t i gat i on; [and]
. . . ( i v) a not i ce t hat t he consumerhas the
r i g h t t o a d d a s t a t e me n t t o th e c o n s u me r ’ s f i l e d i s p u t i n g t he
acc ur acyorcompl et enes s of the i nform at i on . . . . ” Id . § 1 6 8 1 i( a)(6 )(B ). “I f t he re i nves t i gat i on does not r es ol ve t he di s put e, ” the63 cons um erm ayfi l e a s t at ementof hi s orher d isput e w i t h the
c re d it r e p o rt in g a g e n c y . Id
. § 1681i ( b)
. “W heneve r a s t at ement of di s put e i s fi l ed, ” the cr edi tr epor t i ng agenc y“i n any
su b se q u e n t co n su m e r re p o rt c o n tain in g th e in f o rm a tio n in ques t i on, [m us t ] cl ear l ynot e that i t i s di s put ed bythe cons um er
an d p r o v i d e e i t h e r t h e c o n s u me r ’ s s t a t e me n t o r a c l earand
acc ur at e codi fi cat i on ors um m aryt her eof. ” Id . § 1 6 8 1 i(c ). T h is al l ow s “po t enti al credi t ors [t o] hav e bo t h si des of the st ory[so that t hey ] can r each an i nd epen den t determ i nati on of how to tr e a t . . . s p e c if

ic , d is p u te d ” in f

o rm a tio n . C ah l i n v. G en. Motors A cce ptance Corp. , 9 3 6 F . 2 d 1 1 5 1 , 1 1 6 0 n . 2 3 (11 th C ir
. 1 9 9 1 ). C or t ez c l ai m s that T r ans U ni on w as obl i gat ed t o i ncl ude
n o ti ce o f h er d ispu te ab o u t th e O F A C alerts i n h er c red itrep o rt under§ 1681i ( c)
. A s n o ted ear l i er , i n a l et t erdat ed M ay10, 2 0 0 5 , T r ans U ni on t ol d C or t ez, “[O ] urr ecor ds s how t hatt he inf o rm at i on y ou di s put ed does notcurr ent l yappea ron y our T r ans U ni on cr edi t r epor t . ” J . A
. 545. T her eaf t er , T r ans U ni on t w i ce i ssu ed C o rt ez’ s cr edi t r epor t w i t h t he
m i s l eadi ng/ err o neous O FA C al ert s and w i t houtnot i ng t hat Cort e z was d i s p u t i n g t h o s e a l e r t s . Tr a n s Uni o n d o e s n o tdenyC o n g re ss d id n o t re q u ire th a t co n su m e rs s u b m it 33 di s put es on s peci fi c form s , and anys uch t echni cal r equi r ements eems i ncons i s t entw i t h t he r emedi al focus of the F C R A
. See Sul l i van v. G r eenwood C r edi tU ni on , 520 F. 3d 70, 7 3 (1 st C ir. 2 0 0 8 ); see al so C us hm an , 115 F. 3d at223. 64 t hi s . I t s onl yar gum enti s t hatC or t ez ne verex p l i ci t l yfi l ed a
s t at ementof di s put e under§ 1681i ( b) and thus , i t h ad no
o b lig a tio n to in c lu d e a sta tem e n t in th o se su b se q u e n t cr e d it
re p o rts u n d e r § 1 6 8 1 i( c ) . T h e a rg u m e n t o n c e a g a in is unconvi nci ng. I n G ui m ond , th e c o u rt e x p lain e d th a t a § 1 6 8 1 i(c ) c laim
r equi r es a s how i ng t hat( 1) t he pl ai nt i ff di s put ed an i t em i n her fi l e; ( 2) anyr ei nves t i gat i on conduct ed bythe cons um er
r epor t i ng agenc ydi d notr es ol ve the di s put e; (3) the pl ai nt i ff fi l ed a s t at ement o f di s put e; and ( 4) the s t at ementw as not i ncl uded w i t h s ubs equentcopi es of hercr edi tr epor t . 45 F. 3d at 1335. T he courtul t im at el yhel d thatG ui m ond’ s § 1681i ( c) cl ai m fai l ed bec aus e, al t hough s he m etthe fi r s ttw o el ement s of t he cl ai m , sh e fa il ed t o pr es entevi dence t hats he fi l ed a
s ta te m e n t o f

d is p u te . Id
. 33 T h o u g h w e d o n o t d isa g re e w ith th e a b o v e sta n d a rd , this
cas e i s di s t i ngui s habl e and fr ankl y , extr aor di nary . T r ans U ni on65 a d m its n o t o n lyth a t itn e v e r re in v e stig a ted C o rte z ’s d isp u te, it
conce des t hati tneverinten d ed t o do s o beca us e of i t s fi xed pol i cyr egar di ng O FA C alert s . M or eover , aft erC or t ez ha d
s ubm i t t ed one ve rbal and tw o w r i t t en r eques t s , T r ans U ni on
r es ponded t o herw i t h a l et t erthat s t at ed, “A ft er r evi ew i ng y our
corr es pondence , w e w er e unabl e t o det erm i ne t he natur e of y our
r eques t . ” A ft erC or t ez w r ot e t o T r ans U ni on a t hi r d t i m e, T r ans U ni on r es ponded t o herthat“the i nform at i on y ou di s put ed does
n o t cu rre n tlya p p e a r o n y o u r T ra n s U n io n c re d it r e p o rt.” T h is fi nal r es pons e by T ran s U ni on t o C or t ez w as pat ent l yfal s e. T r ans U ni on t hw ar t ed C or t ez’ s abi l i t y t o r eques t t hata s t at ement of di s p u te b e i ncl uded i n s ubs equentcr edi tr epor t s byt el l i ng C or t ez thatt he di s put ed i nform at i on w as noti n herr epor ti n t he fi r s tpl ace . St i l l , C or t ez per s i s t ed. She r es t at ed herdi s put e eve n aft ers he w as fal s el yt ol d thati nform at i on w as r emoved fr om her
c re d it rep o rt, i .e., ev e n a f ter th e re in v e stig a ti o n w a s c o m p lete and s he w as m i s i nform ed by t he cr edi t r epor t i ng agenc yt hatt he i s s ue s he had r ai s ed w as r es ol ved. G i ven t hat evi dence , i tw as
r e a so n a b le f

o r th e ju ryto c o n c lu d e th a t C o rte z h a d a d e q u a tely i nform ed Tra ns U ni on thati t s r ei nves t i gat i on di d notr es ol ve herE ven though C or t ez’ s cl ai m i s s uppor t ed by 34 num er ous r eques t s t o t he cr edi tr epor t i ng agenc y , w e do not su g g e st th a t a c o n su m e r m u st m a k e m o re th a n o n e re q u e st to have not i ce of

a di s put e i ncl uded i n a cr edi tr epor tunder15 U .S .C . § 1 6 8 1 i( b ) a n d (c ).
66 d isp u te a n d th a t T ra n s U n io n f a iled to n o te th a t o n h e r c re d it
r epor t , as r equi r ed byt he FC R A
. A ccor di ngl y , w e af fi r m t he 34 di s t r i ctcour t ’ s deci s i on deny i ng T r an s U ni on’ s m ot i on for j u d g me n ta s a ma t t e ro f l a w o n Co r t e z ’ s § 1 6 8 1 i ( c ) c l a i m. H a v in g c o n c lu d e d th a t th e d istric t co u rt d id n o t er r in d e n y i n g T r a n s Un i o n ’ s mo t i o n s f o r j u d g me n t a s a ma t t e r o f l a w, and thus aff

i r m i ng t he di s t r i ctcour t’ s r efus al t o overturn t he j ur y ’ s l i abi l i t ydet erm i nat i on, w e t urn t o C or t ez’ s cl ai m thatthe di s t r i ctcour terr ed i n r educi ng herpuni t i ve damage aw ar d. A lth o u g h , as w e w il l exp lai n , w e co n clud e tha t w e m u st aff irm th a t r e d u c tio n , w e a re n e v e rt h e le s s tr o u b le d b yit.

I I I . DAM AG ES In h e r a p p e a l, C o rte z a rg u e s th a t s h e is e n tit led to
r ei ns t at ementof the j ury ’ s puni t i ve damages aw ar d beca us e the di s t r i ctcour tdi d nothave t he author i t yt o or dert he condi t i onal
re m itt itu r, w h ich sh e a c c e p ted u n d e r p ro tes t. In its c ro ss -a p p e a l, T r ans U ni on ar gues t hat t he puni t i ve dam ages s houl d nothave67 been s ubm i t t ed to the j ury , thatthe di s t r i ctcourts houl d have
r educe d t he com p ens at orydamages , and thatthe puni t i ve d am ag es a re e x ce ssive ev en af ter th e d istri ct co u rt ’s rem itti tur. A . R e m i t t i t ur “[T] he r emi t t i turi s w el l es t abl i s hed as a d e v i ce e m pl oy ed
w hen t he tr i al j ud ge finds t hat a deci si on of the j uryi s cl e a rly
uns uppor t ed and/ o r e x cess i ve. ” Spence v. B d. of E duc. of C h ris tin a Sc h . D ist. , 8 0 6 F .2 d 1 1 9 8 , 1 2 0 1 (3 d C ir. 1 9 8 6 ). W h ile
c o u rts o f ten u se th e ter m “ re m itt itu r” to re f e r to a n y re d u c tio n in a damages aw ar d, i ncl udi ng on e w hi ch i s i m pos ed t o s at i s fy
co n sti tuti o n al du e p roc ess c o n ce rns, the t erm is actua ll yfa r m o re sp eci fi c. I n Johans en v. C om bus t i on E ngi neer i ng, I nc. , 170 F. 3d 1320 ( 11t h C i r . 1999) , the C our tof A ppea ls forthe E l eventh C i r cui texpl ai ned the di ffe r ence betw een a
co n sti tuti o n all yred u ce d v erd ictan d a re m itti tur: A cons t i tut i onal l y r educe d ver di ct . . . i s r eal l ynot a r emi t t i turatal l
. A r emi t t i tur i s a s ubs t i tut i on of t he cour t ’ s j udgm ent for t hatof the j uryr egar di ng th e a p p rop ri ate a w ard o f d am ag es. T h e c o u rt o rde rs a rem itti tur w h en itb eli ev es th e jury ’s aw ard i s u n re a so n a b le o n th e f a c t s . A con st i tut i on a l r e du c t i on , on t he othe r ha nd , i s a det erm i nat i on t hatt he l aw does notp erm i tt he aw ard
. U n li k e a r em itti tur, w h ich is d iscreti o n ary w ith th e c o u rt . . . a c o u rt h a s a m a n d a to ryd u tyto68 corr ectan un con st i tuti on al l yexcessi ve v erdi ctso t hati tconform s t o t he r equi r ement s of the due pr oces s cl aus e. I d. a t 1 3 3 1 (f

o o tn o te a n d c itatio n o m itt e d ); s ee al s o R os s v. Kan sa s C it

y Pow er& Li

ghtC o. , 2 9 3 F .3 d 1 0 4 1 , 1 0 4 9 -5 0 (8 th C ir . 2 0 0 2 ). D e sp ite the d if

f e re n c e s b e tw e e n a c o n stitu tio n a lly
r educe d ver di ctand a r emi t t i tur , i t i s m i s l eadi ng t o s ugges tt hat
a cons t i tut i onal l yr equi r ed r educt i on i n an aw ard “i s r eal l ynot
a re mi t t i tu ra ta l l ” b e c a u s e n u me r o u s c o u r t s , i n c l u d i n g t he S u p re m e C o u rt , re f

e r t o it a s s u c h
. S e e , e .g ., B M W o f N. A m ., Inc. v. G ore , 5 1 7 U .S . 5 5 9 , 5 8 3 (1 9 9 6 ) (“ In m o st c a se s, th e ra tio
w i l l be w i t hi n a cons t i tut i onal l yacc ept abl e r ange, and r emi t t i tur
w ill n o t b e ju stif

ied o n th is b a sis .”); s e e al so A s h v. G eor

gi aP aci f i c C or p. , 957 F. 2d 432, 438 ( 7th C i r . 1992) ( “Perhaps [ the p lai n ti ff ] ha s b ee n m isl ed b ythe d u al m ea n ing s o f ‘rem itti tur’. C our t s s om et i m es us e t hi s w or d t o r efe rt o an opt i on betw een a
r educe d aw ar d and a ne w t r i al ; atother t i m es cour t s s peak of any
re d u c tio n a s a re m ittit u r.” ). T h e d is tin c tio n is re le v a n t h e re . T h e re m ed ies av ail ab le t o a c o u rt w h e n red u cing a jury
aw ar d bas ed upon due proc es s conce r ns ar e not nece s s ar i l yt he69 s ame as t hose ava i l abl e w hen a c our texer ci s es i t s di s cr et i on b e c a u se it b e liev e s th e a m o u n t o f th e a w a rd is in c o n sis ten t w ith the e v iden c e in a c ase . T h e latt er is co n d it ion al, an d the c o u rt
m us t o ff er a new t r i al as an al t ernat i ve t o a r educt i on i n t he
a w a rd in o rd e r to a v o id d e p riv in g th e p lain tiff o f h is/h e r S e v e n th A m e n d m e n t r ig h t to a ju ry tria l. See H et z el v. P r i nce W

i l l i am C nt y. , 5 2 3 U .S . 2 0 8 , 2 1 1 (1 9 9 8 ) ( p e r c u ri a m ). I n Het z el , the C o u rtex p lai n ed that w h en a tri al co u rt det erm i nes t hatt he evi dence does nots upportthe j ury ’ s gener al d am ages aw ard, i t “has no autho ri t y . . . t o ent er an a b so lu te ju d g m e n t f

o r a n y o th e r su m th a n th a t as s e s s e d b y th e ju ry . . . .
w i t houtal l ow i ng pet i t i onerthe opt i on o f a new t r i al
. ” I d. ( quot a t i o n o mi t t e d )
. Th u s , a c o u r tmus ta f f o r d a p l a i n t i f

f t he
o p ti o n o f a n ew tr ial w h en itatt em p ts t o red u c e a ju ryaw ard beca us e i tbel i eves t he am ount of t he ver di ct i s nots uppor t ed by t he evi den ce . T hes e r educt i ons ar e fr equent l yr efe r r ed t o as
con dit i on al rem i t t i turs. T he sam e i s no t t rue w hen a cou rtm ust red u ce a d am ag e s aw ard to av o id a d en ial o f d u e p roc ess. In t hat cas e, t he aw ar d i s r educe d as a mat t erof l aw and ther e i s no interfe ren ce w ith the S ev en th A m en d m en t r igh t to h a v e a jury70 m a k e f in d in g s o f

f a c t. G ore , 517 U
. S. at5 8 5- 86. W e r evi ew di s cr et i onaryr educt i ons i n j ury aw ar ds for abus e of di s cr et i on,
s e e Ev a n s v . Po r tAu th
. o f N. Y. & N. J. , 273 F. 3d 346, 354 ( 3d C ir. 2 0 0 1 ), b u t w e c o n d u c t de no vo rev iew o f a tr ial co u rt ’s
con st i tuti on al l yrequi red r edu ct i on of d am ages. See Cooper I ndus
. , I nc. v. Leather m an ToolG r p. , I nc. , 532 U
. S. 424, 431 (20 0 1 ). T he Supr eme C our thas fu r t herl i m i t ed ourr evi ew of condi t i onal r emi t t i tur s l i ke the one w e have h ere . A s w e have j us tnot ed, t he choi ce be t w een a r educe d aw ar d and a new tr i al i s r equi r ed byt he Seventh A m endment , an d a cour tcannot
r educe an aw ar d w i t houtaff or di ng t he pl ai nt i ff the opt i o n of a
n e w tr ia l. See H

et z el , 523 U
. S. at211. I n Don o v a n v . P enn Shi ppi ng C o. , I

nc. , 429 U
. S. 648 ( 1977) ( per c u r i am), the Supr eme C our thel d t hat“a pl ai nt i ff i n fede r al co ur t. . . m ay
n o t app ea l from a rem itti tur o rde r he h as a cc ep ted” ev en w h ere th e p la in tif

f a c c e p te d th e re m itte d a w a rd u n d e r p ro te s t. Id
. at 6 5 0
. C o rt ez a r gues foran exc ept i on t o t hi s rul e underour deci s i on i n D em er et

zv. D ani el

s Mot orFr ei

ght , I nc. , 307 F. 2d 4 6 9 (3 d C ir . 1 9 6 2 ).W hen D e m e re tzw a s d e c id e d , a d istric t co u rt c o u ld 35 n o t ord er a n ew tr ial u n d er R u le 59 eith er su a sp o n te o r fo r a r eas on nots t at ed i n a part y ’ s m ot i on t en day s aft erthe entr yof j udgm ent . 307 F. 2d at472. 71 I n D e m e re tz , the d istr ic t c o u rt g a v e th e p lain tiff tw e n ty day s t o ei t her s ubm i t t o a new t r i al on damages ort o agr ee t o a
r educt i on in the jur y ’ s ver di ct . 307 F. 2d at471. T he pl ai nt i ff di d notr es pond w it h in t w entyday s , and the courtent er ed a ju d g m e n t in th e a m o u n t o f th e re d u c e d a w a rd
. I

d. T he pl ai nt i ff appea l ed, ar gui ng t hat i ti s “bey ond t he court ’ s pow er , ” once t he expl i ci tt i m e l i m i t at i on i n R ul e 59( d) of the Feder al R ul es of C i vi l Pr ocedur e has expi r ed, t o or d era new tr i al on a gr ound th a t th e d e f

e n d a n t d id n o t r a is e in its m o tio n f o r a n e w tr ia l. I

d.
a t4 7 2
. Th o u g h t h e a p p e a l o f a n o r d e rg r a n t i n g a n e w t r i al 35
nor m al l y w o ul d be i nt er l ocut ory , w e hel d t hatundert he Supr eme C our t ’ s deci s i on i n Ph i l l i p s v . N egl ey , 117 U
. S. 665 ( 1886) , t he or derw as r evi ew abl e as a fi nal j udgm ent beca us e the p la in tif f w a s c h a lle n g in g th e c o u rt ’s a u th o ri ty to a c t. D e m e re tz , 307 F. 2d at472
. W e hel d t hatthe courtdi d nothave the author i t yt o r educe the j ury ’ s aw ar d su a sp o n te beca us e the
or derh a d n o tb e e n e n t e r e d wi t h i n th e t i me l i mi te s t a b l i s h ed
u n d e r R u le 5 9 (d ). R u le 6 0 o f th e F e d e r a l R u les o f C iv ilC or t ez a l s o ar gues thatthe cons t i tut i onal i t yof 36 condi t i onal r emi t t i tur s i s ques t i onabl e. Si nce c ondi t i onal r emi t t i tur s have be en r ecogni zed bythe Supr eme C our tas e a rlya s 1 8 8 6 w ith o u t co n c e rn s b e in g ra ise d a b o u t th e ir p ro p ri e ty, see N

. P ac. R
. C o. v. Herbert , 116 U
. S. 642, 646- 47 (1 8 8 6 ), w e c a n s a f

e ly d is re g a rd th a t a rg u m e n t. See a l so Johans en , 170 F. 3d at1328- 29. 72 P ro c e d u re d id n o t c o n tain a sim ilar li m itatio n , b u t th a t R u le d id not appl y beca us e t he di s t r i ct cour t w as not att empt i ng t o corr ect
a c le ri c a l o rd e r o r m is ta k e . Id
. at473. C or t ez a t t empt s t o ar gue thatsinc e she condi t i oned her
a c c e p tan c e o f

th e re m itt itu r u p o n th e c o u rt’s l e g a l a u th o rityto i m p o s e it, D onovan do es no t app l y and she s ho uld be abl e to chal l enge the mer i t s of the r educt i on i n herpuni t i ve damages
u n d er D e m e re tz . S h e a rg u e s tha t, o th e rw ise , “ [ s h e ] w o u ld
never , as a pr act i cal m att er , be abl e t o have he rcas e dec i ded by a j ur yorbe abl e t o have m eani ngful appel l at e r evi ew of anyt r i al
cour terr or s . ” C or t ez Repl yB r . at51. 36 C o rt ez maybe corr ecti n cl ai m i ng t hats he w as on the hor ns of a di l emm a and t hat t he pr act i cal r es ul tof di s m i s s i ng her chal l enge t o t he court ’s re m i t t i turw i l l be t o pl ace i tbey ond appel l at e r evi ew . N evert hel es s , the C our thel d i n D onovan that a pl ai nt i ff c annot chal l enge a r emi t t i tur s /he has agr eed t o, evenB ec au se C o rt ez ac ce p ted th e c o n d it ion al rem itti tur, 37 w e d o n o t nee d to rea ch the issu e o f w h ethe r th e d istri ct co u rt ab u sed it s d iscreti o n in red u cing the p u n it ive d am ag es a w ard f r o m $ 7 5 0 , 0 0 0 t o $ 1 0 0 , 0 0 0
. We d o n o t e , h o we v e r , th a twe ar e tr oubl ed byt he court ’ s r eas oni ng i n r educi ng the puni t i ve d am ag es. T h ere is certainlyn o thing w ron g w ith a jury focus i ng on a “de fenda nt ’ s s eemi ng i ns ens i t i vi t y ” i n deci di ng ho w m uch t o aw ard as pun i t i ve d am ages. Id
. “ Puni t i ve damages aw ar ds ar e ‘ t he pr oductof num er ous , and s om et i m es i nt angi bl e, fac t or s . . . . ’ ” C G B O ccupat i onalTher apy , I nc. v. R H A Heal th Ser vs . , I

nc . , 499 F. 3d 184, 195 ( 3d C i r . 2007) ( quot i ng TX

O P r od. C or

p. v. A l l i ance Res
. C or

p. , 50 9 U. S. 4 4 3 , 4 5 7 (1 9 9 3 ) ( p lu ra lity o p in io n ) ( e llip s is in o ri g in a l) ). B yt hei rverydefi ni t i on, puni t i ve damages ar e i nt ended 73 i f the pl ai nt i ff ha s onl yagr eed unde rpr ot es torpur s uantt o a p u rpo rt ed rese rva ti o n o f righ ts. Itis th ere fo re c lear that C o rt ez ’s chal l enge t o t he re m i t t i tur m us t be re j ect ed notw i t hs t andi ng t he d ilem m a sh e f

o u n d h e rse lf

in . H e r o n lyc o u rse o f

a c tio n w o u ld have be en t o r ej ectt he r emi t t i turand pr ocee d to a s econd tr i al
w hi ch c o u l d h a v e b e e n l i mi t e d t o t h e i s s u e o f d a ma g e s . She
w oul d t hen be i n t he unenvi abl e pos i t i on of ri s ki ng no puni t i ve
a w a rd a t a ll. T he di s t r i ctcour t clea r l yhad the author i t yt o ent erthe Sept ember13, 2007 condi t i onal r emi tt i tur and C or t ez’ s at t empt t o avoi d t he Supr eme Court ’ s deci s i on i n D onovan i s m eri t l ess. Sh e c a n n o t n o w c o n t e s t t h e me r i t s o f t h e d i s t r i c t c o u r t ’ s or der
r e d u c i n g t h e j u r y’ s a w a r d o f p u n i t i v e d a m a g e s . A c c o r d i n g l y, 37t o puni s h a def endant ; theyar e noti nt ended t o compensa t e the pl ai nt i ff. “[P] uni t i ve damages s erve a br oaderfunct i on; they ar e ai m ed atdet err ence and r etr i but i on. ” S ta te Fa rm Mu t. A u to . In s. C o . v. C a m

p b e ll , 5 3 8 U .S . 4 0 8 , 4 1 6 (3 d C ir . 2 0 0 3 ). A ju ryc a n c o n sid e r th e re lativ e w e a lth o f a d e f e n d a n t in deci di ng w hatamount i s s uffi ci entt o i nfl i ctthe i nt ended p u n is h m e n t. See R es t at ement( Second) of Tort s § 908( 2) ( 1979) ( l i s t i ng w eal t h as a fa ct orw hi ch “c an” be cons i der ed in d e te rm in in g p u n itiv e d a m a g e s ). C om m on s ens e s ugges t s thata corner“mom and pop” s t or e s houl d notbe s ubj ectt o t he s ame puni t i ve l evel of damages as a companyw or t h cl os e t o a bi l l i on dol l ar s . T he l at t erw oul d s i m pl ynotbe det err ed byan aw ar d t hatm i ghtbe l ar ge enough t o putt he form eroutof bus i nes s . M or eover , the r ecor d cert ai nl ys uppor t s a j urybecomi ng “i ncens ed” ove r T ran s U n ion ’s “inse n sit ivity ” to C o rt ez ’s claim , an d w e a re har d pr es s ed t o under s t and the di s t r i ctcour t ’ s r el i ance on t hat pos s i bl e r eac t i on t o w hatT r ans U ni on di d, and/ or c o n sid e ra tio n s o f

T ra n s U n io n ’s f

isc a l w e a lth a s re a so n s to re d u c e th e p u n itiv e a w a rd
. 74 w e w i l l aff

i r m t he di st r i ctcour t ’ s entr yof j udgm entfor $1 00 , 00 0 in pun i t i ve d am ages.

B . C om pensat ory D am ages U nl i ke puni t i ve damages thatar e i nt ended t o puni s h and det er , “[c ] om pens at orydam ages ar e i nt ended t o r edr es s the
concr et e l os s t hat the pl ai nt i ff ha s s uffe r ed byr eas on of the defe ndant ’ s w r ongful conduct
. ” Stat e Farm Mut . A ut o. I ns . C o.
v . C a m p b e ll , 538 U
. S. 408, 416 ( 3d C i r . 2003) (quot at i ons
o m itte d ). A j ur y can aw ar d actual damages fornegl i gentvi ol at i ons75 of the FC R A and both actual and puni t i ve dam ag es forw i l l ful vi ol at i ons . 1 5 U . S. C
. §§ 1681o, 1681n. “A j ury ’ s damages
aw ar d w i l l notbe ups ets o l ong as t her e exi s t s s uffi ci ent
e v id e n c e o n th e re c o rd , w h ich if a c c e p te d b yth e ju ry , w o u ld
su st ai n t he aw ar d. ” T

h a b a u lt v. C h a it , 5 4 1 F. 3 d 5 1 2 , 5 3 2 ( 3d C i r . 2 0 0 8 )
. W e r e v e r s e a d i s t r i c t c o u r t ’ s d e c i s i o n on compensa t or ydamages and gr anta new t r i al onl y i f the ver di ct is “ s o g ro s s ly ex c e s s iv e a s to s h o c k t h e j u d ic ia l c o n s c ie n c e .” R i ver a v. V

. I
. H ous i ng A uth. , 854 F. 2d 24, 27 ( 3d C i r . 1988) (q u o tatio n o m itt e d ). A lth o u g h o u r re v iew o f a d a m a g e a w a rd is

“ e x c e e d i n g l yn a r r o w, ” we h a v e a “ r e s p o n s i b i l i t yt o r e v i e w a damage aw ar d t o det erm i ne i f i t i s r at i onal l y bas ed. ” Wi l l i a ms
v. M ar t i n Mar i et ta A l um i na, I nc. , 8 1 7 F . 2 d 1 0 3 0 , 1 0 3 8 (3d C ir
. 19 87 ). In doing so, w e m ustview the fa ct s i n t he li gh tm ost f a v o ra b le to C o rt e z . R i vera , 854 F. 2d at25. W e have al r eadyexpl ai ned w hyt hi s r ecor d s uppor t s t he ju ry ’s d e ter m in a tio n o f T ra n s U n io n ’s lia b ili tyu n d e r: § 1681e( b) , forfai l i ng t o fol l ow r eas onabl e pr ocedu r es that
assur ed m axim um po ss ib le a c c u ra c yin p re p a rin g C o rte z ’s c re d it rep o rt ; § 1 6 8 1 i, fo r fa il ing to rea so n ab lyreinv esti g ate C o rt ez ’s76 d isp u tes a n d n o t in d ica tin g h e r dis p u te in h e r su b se q u e n t cr e d it
r epor t s ; and § 1681g, forfai l i ng t o pr ovi de C or t ez al l of the i nform at i on i n herfi l e w hen s he m ade he rr eques t . T r ans U ni on argues t hat the evidence C ort ez present ed w as i nsuff i ci ent as a
m at t erof l aw t o s uppor tth e co m p ens at orydamages aw ar d of $ 5 0 ,0 0 0 a n d , thu s, th e d is trict c o u rt a b u se d its d isc re tio n in fai l i ng t o r emi tt hataw ar d. W e do notagr ee. C o rt ez test ifi ed that sh e su ff ere d sev ere an x iety , fe ar, d i s t r e s s , a n d e mb a r r a s s me n ta s a r e s u l to f t h e e r r o n e o u s OF AC al er tand Tra ns U ni on’ s r efus al t o gi ve hera corr ect ed copyof herr epor t . T he anxi ety caus ed her t o fee l compel l ed t o w arn a
w ou l d-be credi t or abou t t he al ert , w hich l ed to add i t i on al stres s
an d e mba r r a s s me n t . Th e r e i s a l s o e v i d e n c e th a ts h e s u ffe r ed sle e p les sn e ss th a t re q u ire d m e d ica tio n . S h e c r ied f re q u e n tly becau se of t he frust rat i on from T rans U nion’s fai l ure to acknow l edge the i s s ue. C or t ez’ s daught er t es t i fi ed thatC or t ez
w as under extr eme s t r es s , t hat C or t ez cr i ed oft en and l os tw ei ght due t o t he s t r es s reg ard i ng hercr edi tr epor tovert he tw o- y ear
o rd e a l, a n d th a t C o rte z d isc u ss e d h e r c o n c e rn s a b o u t h e r c re d it
r epor teveryt i m e theys poke.77 T he ps y chol ogi caland s tr ess-related su ff ering thatC ort ez had t o endur e i s t he very ki nd of i nj ury t hat w oul d be expe ct ed t o r es ul tfr om err oneous l yas s oci at i ng a cons um erw i t h a “S pecial l yD esi gn at ed N at i on al
. ” In al l ow i ng s ui t s for dam ages, C o n g ress c ertainlyinten d ed to all o w co m p en sati o n fo r th e v ery k in d o f h a r m th a t th e F C R A w a s in ten d e d to p re v e n t. T h is is notl egi s l at i on m andat i ng a s afe t y s t andar d t o pr eventphy s i cal i nj ur y . I ti s l egi s l at i on des i gned t o fac i l i t at e banki n g an d the ext ens i on of cr edi tw hi l e prot ect i ng cons um er s fr om t he ki nd of i nj ur yt hatw i l l al m os tcert ai nl yr es ul tw hen err oneous i nform at i on i s i ns er t ed i nt o a cr edi tr epor t . T hus , damages for vi ol at i ons of the FC R A al l ow r ecove r yforhum il iat i on and embar r as s m entorm ent al di s t r es s even i f the p lai nt i ff ha s
s u f f e re d n o o u t- o f

-p o c k e t lo s s e s . P h ilb in , 101 F. 3d at963 n. 3. M o re o v e r, a c o n su m e r m a yb e a w a rd e d a c tu a l d a m a g e s e v e n if
s h e i s a b l e t o o b t a i n c r e d i t a f t e re x p l a n a t i o n o f

th e i n a c c u r a c y. See M or r is v. C r edi t B u reau of C i nci nnat i, I

nc. , 563 F. Supp. 962, 969 ( S. D . O hi o 1983)
. T i m e s penttr y i ng t o r es ol ve p ro b lem s w ith th e c re d it rep o rtin g a g e n c ym a ya lso b e tak e n in to
a c c o u n t. St eve ns on v. TR W I nc. , 9 8 7 F . 2 d 2 8 8 , 2 9 7 (5th C ir
.78 1 9 9 3 ). T he di s t r i ctcourtfound thata compensat oryaw ar d of $ 5 0 ,0 0 0 w a s “ e x c e e d in g lyg e n e ro u s” b u t co n c lu d e d th a t itd id
n o t j u s t i f yju d ic ia l in te rf

e re n c e . C or t ez , 2007 W L 2702945 at
* 2 . A s sta ted a b o v e , th e sc o p e o f o u r re v iew h e re is e x c e e d in g ly
narr ow . W e agr ee w i th the di s t r i ctcour tt hatt her e i s s uffi ci ent evi dence i n t he r ecor d t o s uppor tthe j ury ’ s co mpens at oryaw ar d. T r ans U ni on ci t es t o C ous i n v. Trans U ni on C or p. , 246 F. 3d 359 ( 5t h C i r . 2001) and C as el l a v. E qui f ax C r ed itInfo. Servs. , 56 F. 3d 469 ( 2d C i r . 1995) t o ar gue thatevi dence s i m i l ar t o t hatpr offe r ed byC or t ez w as r ej ect ed bythe C our t s of A ppea l s f

o rt h e Fi f

t h a n d Se c o n d Ci r c u i t s , r e s p e c t i v e l y , as i ns uffi ci entt o s uppor tcompensa t orydamage aw ar ds
. T r ans U ni on B r . at36, 38- 39. W e ar e notper s uaded. F i rs t , T rans U nion neg l ect s the fact t hat i n b oth of t ho se
c a se s, th e p lain tiff

s f a iled to sh o w th a t th e d e f e n d a n ts’ c re d it
re p o rt s w e re th e c a u s e o f th e p la in tif f s ’ e m o tio n a l d is tr e s s . See C o u sin , 246 F. 3d at 370 ( hol di ng t hatt he pl ai nt i ff f ai l ed t o s how t hatT r ans U ni on’ s cr edi tr epor tw as t he ca us e of e m ot i onal di s t r es s w her e ther e w er e r epor t s fr om m u lt iple agenc i es at79 p lay); C a se lla , 56 F. 3d at474- 75 ( hol di ng t hatt he pl ai nt i ff f a iled to sh o w th a t th e d e f e n d a n ts’ c re d it re p o rts a s o p p o se d to t h e c i t y o f Sa n Di e g o , whi c h was wr o n g l y r e p o r t i n g t hat d ef en d an t ow ed ch il d su p p o rt , w ere the ca u se o f th e p lai n ti ff ’s
e m o tio n a l d is tr e s s ). T h a t is n o t th e s itu a tio n h e re . S e c o n d , w e h a v e n o t ad o p ted , an d n o w re f u se to a d o p t, th e F if th C irc u it’s sta n d a rd re q u irin g “ a d e g re e o f sp e c if icity
w hi ch may inclu de corr obor at i ng t es t i m onyorm edi cal or p s y c h o lo g ic a l e v id e n c e in s u p p o rt o f th e d a m a g e a w a rd .” C o u sin , 2 4 6 F. 3d at371 ( quot at i on om i t t ed)
. Such
corr obor at i on goes onl y t o the w ei ghtof evi dence of i nj ury , not t he exi s t ence of i t . I f a j ury acc ept s t es t i m ony of a pl ai nt i ff that
e sta b lish e s a n in

ju ryw ith o u t co rro b o ra tio n , th e p lain tiff sh o u ld be al l ow ed t o r ecove ru n d er the FC R A
. T he fa ctthatt he pl ai nt i ff’ s i nj ur i es r el at e t o the s t r es s and anxi etycaus ed byt he defe ndant ’ s conductdoes notchange t hat
. T hi s i s pr eci s el yt he ki nd of i nj ur yt hatC ongr es s m us thave know n w oul d r es ul tfr om
v io la tio n s o f

th e F C R A
. Fur t herm or e, ourr evi ew of other aw ar ds r ei nfor ces our bel i ef that t he aw ar d her e w as not exce s s i ve, and t hatt he di s t r i ctE qui val entval ue ca l cul at ed us i ng the I nfl at i on 38 C a lc u la to r o f

th e D e p a rt m e n t o f

L a b o r’ s B u re a u o f

S ta tis tic s . See ht tp: // dat a. bl s . gov/ cgi
- bi n/ cpi cal c. pl ( vi s i t ed on M ay3, 2 0 1 0 ). 80 cour tdi d notabus e i t s di s cr et i on i n deci di ng nott o r educe t he
c o m p e n s a to ry a w a r d
. S e e R o b in s o n v . E q u ifa x In fo . S e r v s ., LLC , 560 F. 3d 235, 243 ( 4th C i r . 2009) ( aff i r m i ng j uryaw ar d of $200, 000 foreconomi c and e m ot i onal damages bas ed on l os s of economi c oppor tuni t yi n the home m or t gage mar ket , emot i onal di s t r es s , and l os s of i ncome for appr oxi m at el y 300 hour s s pent
a d d re ss in g e rro rs in th e p lai n tif f ’s c re d it rep o rt); Sl oane v. Equi f ax I nf o. Se r v s . , LLC , 510 F. 3d 495, 505 ( 4th C i r . 2007) ( “A
s ur veyof the other , m or e r ece n t FC R A cas es t hati nvol ve
r eques t s forr emi t t i tur of em ot i onal di s t r es s aw ar ds s ugges t s that appr oved aw ar ds m or e typi cal l yr ange bet w ee n $20, 000 and $ 7 5 ,0 0 0 .”); St eve ns on , 987 F. 2d at298 ( aff i r m i ng “aw ar d of $30, 000 i n actual damages bas ed upon the fi nd ing o f m ent al
an g u ish,” w h ich is the eq u ivalen t of o v er $ 4 5 , 0 0 0 in 2 0 1 0 ). 38 T he j ur y obvi ous l y found t he t es t i m onyof C or t ez a nd her daught ercr edi bl e and a cce pt ed thei revi denc e thatC or t ez
s uffered cons i der abl e anxi ety , emot i onal di s t r es s , and hum i l i at i on as a r es ul tof bei ng asso ciat ed w i t h a governm ent81 l i s tt hati ncl udes peopl e w ho ar e i dent i fi ed as t err or i s t s . I ndeed, i n t he post
- 9/ 11 w or l d, nei t her t hat concl us i on nort he emot i onal im p a c t o f

b e in g a ss o c iate d w ith a list th a t m a yw e ll co n tain t err or i s t s s houl d come as any s urpr i s e. V i ew i ng t he fa ct s i n the l i ght m os t favor abl e t o C or t ez, as w e m us t , w e conc l ude thatthe j ur ycoul d r eas onabl yhave a t t r i but ed s i gni fi cantemot i onal d istre ss to th e K a f

k a e sq u e w o rld in w h ich C o rte z f o u n d h e rse lf
w hen s h e t r i e d t o d i s p u t e t h e OFA C a l e r ta n d Tr a n s Uni on
r efus ed t o acknow le dge thatt he i nform at i on even e xi s t ed. A ccor dingl y , w e af

fi r m t he di s t r i ctcour t ’ s deci s i on deny i ng T ran s U n ion ’s m o ti o n to rem itthe $ 5 0 ,0 0 0 co m p en sato ry damage aw ar d. C . T rans U ni on’ s C hal l enge t o t he P uni t i ve D am ages W e have al r eadyexpl ai ned w hy C ort ez’ s appea l of the
r educt i on of the puni t i ve dam ages i s m er i t l es s . T r ans U ni on app eal s the aw ard of an ypu nit i ve d am ages. It s ch al l eng e i s al so
m e ri tle s s . T rans U nion argues that i s w as ent i t l ed to j ud gm ent as a
m at t erof l aw on C or t ez’ s w i l l ful nes s cl ai m s beca us e Tra ns U n ion’ s det erm i nat i on thatt he O FA C i nform at i on w as notT he Supr eme C our t ’ s deci s i on i n Saf eco defi ned the 39 s ta n d a rd f

o r a ll w illf

u l v io la tio n s o f

th e F C R A
. Levi ne v. W or ld F i n. N

etw ork N at ’ lB ank , 5 5 4 F .3 d 1 3 1 4 , 1 3 1 8 (1 1 th C i r. 20 09 ) ( “T o p rove a w i l l ful vi olat i on , a con sum er m ust pr ove thata cons um err epor t i ng agenc yei t herknow i ngl yor re c k les slyv io late d th e re q u ire m e n ts o f th e [ F a ir C re d it R epor t i ng] A ct . ”) ( ci t i ng Saf eco , 1 2 7 S
. C t. at 22 0 8 ); P oehl v. C ountr yw i de H om e Loans , I

nc. , 5 2 8 F . 3 d 1 0 9 3 , 1 0 9 6 (8th C ir
. 2008) ( appl y i ng Saf

eco w i l l ful s t andar d t o vi ol at i ons of the F C R A b yc re d ito rs) ; Mu r r a y v . N e w C in g u la rW

ir e le s s S e r v s ., I nc. , 5 2 3 F . 3 d 7 1 9 , 7 2 5 -26 (7th C ir
. 2 0 0 8 ) (“[S ]t atuto ry d a m a g e s a re a v a ilab le o n lyf o r w ill f u l v io latio n s o f

th e A c t, and the Supr eme C our thel d i n Sa f eco Insuran ce C o. v. B urr , 551 U
. S. 47 ( 2007) , t hatthi s m eans r eckl es s nes s – s om ethi ng 82 governed byt he FC R A , even i f i tw er e err oneous , w as nei t her obj ect i vel yunr eas onabl e norr eckl es s . T r ans U ni on al s o ar gues th a t th e p u n iti v e d a m a g e s a w a rd , ev e n a s re m itt e d , is unconst i tut i onal
. A s pr evi ous l ynot ed, w e r evi ew the dec i s i on bydi s t r i ct court s t o r emi tdamage aw ar ds forabus e of d is c re tio n . E vans , 2 7 3 F . 3 d a t3 5 4
. We r e v i e w de novo a tr i al
cour t ’ s det erm i nati on r egar di ng the cons t i tut i onal i t yof a p u n itiv e d a m a g e s a w a rd
. C a m p b e ll , 538 U
. S. at418. I n Sa f eco I nsuran ce C o. of Am eri ca v. Bu rr , t h e S u p r e me C our thel d t hatw i l l ful vi ol at i ons of t he FC R A ar e as s es s ed for

“ re c k les s d isre g a rd .” 5 5 1 U .S . 4 7 , 6 0 , 6 9 (2 0 0 7 ); s ee G elm an v. Stat e Far m Mut . A ut o. I ns . C o. , 5 8 3 F . 3 d 1 8 7 , 1 9 2 n . 8 (3d C ir
. 2 0 0 9 ). A c c o rd in g to th e C o u rt:

39m o re tha n n eg li g en ce b u t l ess th an k n o w ledg e o f th e law ’s r equi r ement s . ”)
. I n Per ezv . Tr an s U ni on , LLC , 526 F. Supp. 2d 504 ( E . D . Pa. 2007) , the di s t r i ctcour tw r ongl yappl i ed our pr i ors t andar d, underw hi ch a pl ai nt i ff a l l egi ng a w i l l ful vi ol at i on of § 1681e( b) w as r equi r ed t o s how thatdefe ndant “know i ngl yand i nt ent i onal l ycomm i t t ed an a cti n cons ci ous di s r egar d fort he r i ght s of other s . ” I d. at510 ( quot i ng P h ilb in , 101 F. 3d at970)
. T he di s t r i ctcour tappl i ed that s t andar d hol di ng t hatthe Supr eme C ourt ’ s deci s i on i n Saf eco w a s lim ite d to th e s e c tio n o f th e F C R A a t is s u e in th a t c a s e . W e c lar if

yh e re th a t Saf

eco ’ s s t andar d defi ni ng w i l l ful appl i es t o a l l v i o l a t i o n s o f

t h e F CR A.
83 [ A ] c o m p a n y s u b

jec t to F C R A d o e s n o t ac t in r eckl es s di s r egar d of i tunless the ac t i on i s not onl ya vi ol at i on undera r eas onabl e r eadi ng of the s t atut e’ s t erm s , buts how s t hatt he companyr an a r i s k of vi ol at i ng the l aw s ubs t ant i al l y gr eat erthan th e risk a ss o c iate d w ith a re a d in g th a t w a s m e re ly carel ess. Saf eco , 55 1 U . S
. at 69
. T he fa ctthat Trans U nion’s act i on s r est upon a l egal concl us i on does not i m m uni ze i t fr om l i abi l i t yfor
r eckl es s conductunderthe F C R A
. A cr edi tr epor t i ng agenc y
m ayacti n r eckl es s di s r egar d of a s t atut e’s requi r ement s by
a d o p t i n g a n o b

j e c t i v e l y u n r e a s o n a b l e i n t e rp r e t a t i o n o f t h e l a w. I d. A l t hough t he Supr eme C our thas s ugges t ed thata dea r t h of author i t at i ve gui dance m ayhi ndera part y ’ s effo rt s t o i nt erpr et th e la w re a s o n a b ly, i d. at 70, C or t ez c orr ect l ynot es t hatt he l ack of def i ni t i ve autho ri ty d oes not , as a mat t erof l aw , i m m uni ze84 T ra n s U n io n f

ro m p o te n tia l lia b ility. A cr edi tr epor t i ng agenc ym ayal s o w i l l ful l yvi ol at e the FC R A byadopt i ng a pol i cy w i t h r eckl es s di s r egar d of w hether i t contr avene s a pl ai nt i ff’ s r i ght s underthe FC R A
. H er e, not w i t hs t andi ng t he conc l us i on of Tra ns U ni on’ s la w y er s , t he b r e a d t h a n d s c o p e o f t h e FCRA i s b o t h e v i d e n tand
e x t raor dinary . A s w e exp l ai ned at t he outs et , i t refer s t o “ a ll” i nform at i on, w her everi tm aybe s t or ed , t hati s i nt ended t o be
u se d o r th a t m a yb e u se d in e x ten d in g c re d it. M o re o v e r, itis undeni ab ly a rem edi al s t atut e thatm us tbe r ead i n a l i ber al
m anneri n or dert o eff

ectuat e the congr es s i o n a l i n t e n tu nder l y i ng it. See Sul l i van , 5 2 0 F .3 d a t 7 3 ; s ee al s o C us hm an , 115 F. 3d at 223. W e have no t r oubl e concl udi ng t hat , gi ven t he t ot al i t yof ci r cumst ance s s ur r oundi ng t he O FA C al ert , T r ans U ni on “r an a ri sk of v i olat i ng t he law subst anti al l ygreat er than t he risk
as s oci at ed w i t h a r eadi ng t hatw as m er el ycar el es s . ” Saf eco , 551 U . S. at69. T rans U nion correct l yrem i nd s us that w e are the fir st
c o u rt o f a p p e a ls to a d d r e s s w h e th e r th e F C R A a p p lies to i nform at i on fr om O FA C ’ s SD N L i s t i n t he form of a n alert85 rep o rt ed b y a c red itrep o rt ing ag en cy . T h is do es n o t, h o w ev er,
res ulti n a b orderl i ne case of l i abil i t y as T rans U nion sugg est s. I tm er el yes t abl i s hes t hatthe i s s ue has notbee n p rese nt ed t o a
c o u rt o f a p p e a ls b e f

o re . T h e c r e d it ag e n c yw h o se c o n d u c t is fi r s texami ned under t hat s ect i on of t he A cts houl d notr ece i ve
a p a ss b e c a u se th e iss u e h a s n e v e r be e n d e c id e d
. T h e sta tu te is f a r t o o c le a r t o s u p p o rt a n ys u c h lic e n s e . Furthe rm o r e, the ver di ctof thi s l ayj uryr evea l s an
u n d e rsta n d in g o f

th e d istin c tio n b e tw e e n n e g lig e n t an d w ill f u l. T he j ur yfound Tra ns U ni on negl igen ti n i t s vi ol at i on of § 1 6 8 1 e(b ) fo r fa il ing to h av e re aso n ab le pro ce d u res to a ssu re
m axi m um acc ur acyof the i nform at i on i n C or t ez’ s r epor t . In ot herw or ds , i n i t s i ni t i al pr epar at i on of the cr edi tr epor tw i t h the O FA C al er t , w her e Tra ns U ni on r el i ed on A ccui t y ’ s m at chi ng tec h n o lo g y , the ju ryf

o u n d th a t T r a n s U n io n d id n o t ac t w ith
re c k le s s d is re g a rd to C o rt e z ’s ri g h ts . See, e. g. , C a se lla , 56 F. 2d
a t 4 7 5 (hol ding t hat w here Sa n D i ego re- report ed fa l se chi ld
su p p o rt liab ili ty , cre d it rep o rtin g a g e n c ies d id n o t w il lf u lly vi ol at e § 1681e( b) w hen theyr epor t ed thatl i abi l i t yon the pl ai nt i ff’ s cr edi tr epor t ). H ow ever , the j uryfound thatT r ans86 U n io n w ill f

u lly v io late d § § 1 6 8 1 g a n d 1 6 8 1 i in its re sp o n se s to C or t ez’ s r eques tfor a copyof hercompl et e cr edi tr epor tand her
r eques tforr ei nves t i gat i on. T r ans U ni on cat egor i cal l ydenied t hatt he O FA C al er ti nform at i on w as on C or t ez’ s r epor t , even t hough i tcont i nued t o r epor tthatinf o rm at i on t o pot ent i al
cr edi t or s and fa i l ed t o i ncl ude anys t at ementin the r epor tt hat C o rte z d isp u ted th e O F A C in f o rm a tio n . T h e re c o rd c lea rly
s uppor t s t he j ur y ’ s r eas oned det erm i nat i o n th atT r ans U ni on w as
n o t“ m e r e l yc a r e l e s s ” i n f a i l i n g t o r e c o g n i z e t h a tt h e F CRA g o v e rn e d th e O F A C in f o rm a tio n it w a s re p o rt in g . I n at t empt i ng t o over turn t he puni t i ve damages aw ar d, T r ans U ni on r epea t s it s argumentthatthe O FA C i nform at i on
w as notpar t of t he cons um er ’ s “fi l e. ” W e have al r eadydi s pos ed
o f th a t ar g u m e n t, an d n e e d n o t d isc u ss it a g a in
. W e d o th in k it is w o rth reit era ti n g that the O F A C reg u lat ion s an d the T rea su ry D e p a rtm e n t’s w e b site b o th in d ica te th a t O F A C in f o rm a tio n in
a c re d it rep o rt is in f

a c t g o v e rn e d b yth e F C R A
. T h a t w e b site goes as faras t o m ent i on t hatt he FC R A and the FT C pr ovi de
cons um er s w i t h a r emedyw hen an i nval i d O FA C A l erti s on t h e i r c r e d it r e p o r t s . See87 h t tp : //ww w. t r e a s . g o v / o f f i c e s / e n f o r c e me n t/ o fac / faq/ ans w er . s ht
m l #cons um er 2 ( vi s i t ed J une 17, 2 0 1 0 ) (“H ow C an I G etT he O FA C A l er tO ff M yC r edi tR epor t ? A cons um erhas t he r i ght under t he Fai r C r edi t R epor t i ng A ct( FC R A ) , 15 U
. S. C
. 1681 et
s eq. , t o r eques tt he r emoval of i ncorr ecti nform at i on on hi s /her
cr edi t r epor t . T o acc om pl i s h t hi s , cons um er s s houl d cont actthe
cre d it rep o rt ing ag en cy o r b u rea u that issue d the c red itrep o rt . ”). E ven a cur s or y l ook atthatw ebs i t e s houl d have i nform ed Tra ns U nion of t he p eri l s of i t s approach t o O F A C al ert s. T r ans U ni on ar gues thatbeca us e the FT C , and notthe T r eas ur yD epart m ent , i s the agencyauthor i zed t o enfor ce the F CRA, t h e Tr e a s u r y De p a r t me n t ’ s c o n c l u s i o n s a b o u t t h e F CRA
ar e notr el evant . T hatar gum entonl ybol s t er s ourbel i ef thatthe j ur yact ed r eas onabl yi n concl udi ng t hat T r ans U ni on’ s act i ons
w e re n o t “m e re lyc a re les s” b u t w e re w ith re c k les s d isre g a rd to t he l aw . T he j ur ym ayw el l have c oncl uded thatT r ans U ni on
m ade a s t r a t e g i c d e c i s i o n t o i n c l u d e OFA C i n f o r ma t i o n i n t he
m an n er i tdi d beca us e the O FA C al ertw as a s epar at e pr oduct th a t c o u ld b e s o ld to c u s to m e rs a t a d d itio n a l c o s t. W hen cons i der ed t ogether w i t h our anal y s i s i n s uppor tof88 t he j ur y ’ s fi ndi ng of l i abi l i ty , w e ea s i l y co n cl ude thatT r ans U n io n su b sta n tially risk e d a c tin g in v io latio n o f th e law w h e n it
m a d e th e p o licy d e c isio n to e x c lu d e O F A C in f o rm a tio n f

ro m its FC R A compl i ance . A l t hough s uch a f i nding ca n notbe made l i ght l y , es peci al l yi n a ca s e of f i r s ti m pr es sion , iti s i m per at i ve t hatw e do not al l ow “a companyt hatt r aff i cs i n the r eput at i ons of or di narypeopl e” a fr ee pa s s t o i gnor e t he r equi r ement s of the FC R A e a c h t i me i tc r e a t i v e l yi n c o rp o r a t e s a n e w pi e c e of p e rs o n a l co n s u m e r in f

o rm a tio n in its re p o rt s . D ennis v. B EH
- 1, LLC , 5 2 0 F .3 d 1 0 6 6 , 1 0 7 1 (9 th C ir . 2 0 0 8 ). Fi nal l y , T r ans U ni on ar gues t hatt h e rem i t t ed puni t i ve d a m a g e s a w a rd v io late s its d u e p ro c e ss rig h ts u n d e r th e 1 4 th A m endment
. W e r evi ew the aw ar d d e novo to de t erm i ne
w hethert he aw ar d of puni t i ve damages i s “gr os s l yexce s s i ve or
arbi t r ary . ” C a mp b e ll , 538 U
. S. at416. I n C a m p b e ll , t he S u p rem e C o u rtsu m m a ri ze d the th ree g u idep o sts a co u rt
r evi ew i ng puni t i ve damages s houl d cons i der : “( 1) the degr ee of
re p re h e n sib ili tyo f

th e d e f e n d a n t’s m isc o n d u c t; (2 ) th e d isp a rity b etw een the ac tual orpot ent i al harm s uffe r ed bythe pl ai nt i ff and the puni t i ve damages aw ar d; and (3) the di ffe r ence betw een89 t he puni t i ve damages aw ar d byt he j uryand t he ci vi l penal t i es author i zed ori m pos ed i n compar abl e ca s es . ” I d. at418 ( ci t i ng G ore , 5 1 7 U .S . a t 5 7 5 ). T he di s t r i ctcour t ’ s r emi t t ed aw ar d of $100, 000 does not even be gi n t o appr oach the out erl i m i tof puni t i ve damages “ai m ed atd eterrenc e and r etr i but i on” al l ow ed bythe C o n s titu tio n . I

d. a t 4 1 6
. I n t e r ms o f

r e p r e h e n s i b i l i t y , th e f

i r s tg u i d e p o s t , Tr a ns U ni on i gnor ed “the overw hel m i ng l i kel i hood of l i abi l i t y ” and cont or t ed i t s pol i ci es t o avoi d i t s r es pons i bi l i t i es u n d ert he F C R A
. I

d. a t 4 1 9 . T ra n s U n io n a lso re p e a ted lyf a iled to
a c k n o w ledge t o C ort ez t hat the O F A C A l ertw as i n h er cr edit
re p o rt w h e n it k n e w th a t th e in f o rm a tio n w a s b e in g re p o rte d to its s u b s c ri b e rs . I

nt erMed. Suppl i es , Ltd. v. EB I Med. Sys
. , I

nc. , 1 8 1 F .3 d 4 4 6 , 4 6 7 (3 d C ir. 1 9 9 9 ) (th e d e g re e o f re p re h e n sib ili ty of a de fen d a n t ’ s c o n ducti ncl udes w hetherthe conduc t“i nvol ves d eli b era te f

alse stat em en ts rathe r th an o m issi o n s”). M o reo v er,
a lth o u g h C o rte z d id n o t s u f f e r se v e re p h y sic a l h a rm , th e g ra v ity of harm t hat coul d r es ul t fr om T r ans U ni on’ s “mat ch” of C or t ez
w i t h an i ndi vi dual on a “t err or i s t ” l i s tcannotbe overs t at ed.90 T hi s i s es peci al l yt rue bec aus e Tra ns U ni on’ s s ubs cr i ber s r el yon t he ac cur acyof the det ail ed per s onal i nform at i on T r ans U ni on pr ovi des
. G i ven the s ever e pot ent i al c o ns equenc es of s uch an
a ss o c iatio n , T ra n s U n io n ’s f a ilu re to tak e th e u tm o st c a re in
e n su rin g th e in f

o r m a tio n ’s a c c u ra c y– a t th e v e rylea st, comp aring b irth d ates w h en theyare av ail ab le – is rep reh en sibl e.

Th e d a ma g e s a war d a l s o s u r v i v e s s c ru t i n y u n d er t he
sec o n d g u id ep o st. A n aw ard that is tw ice the co m p en sato ry d am ag es a w ard fa ll s w ell w ith in the S u p rem e C o u rt ’s st an d ard f o r o rd in a ry c a s e s o f

a s in g le -d ig it r a tio
. C a m p b e ll , 538 U
. S. at 4 2 5 . F i nall y , w e agree w i t h the part i es that the thi rd guidepo st is n o t u se f

u l in th e a n a ly sis o f

p u n iti v e d a m a g e s h e re a s th e re is no “trul ycompar abl e” c i vi l pen a l tyt o a FC R A puni t i ve damages
aw ar d. C or t ez Repl yB r . at46; T r ans U ni on R epl yB r . at23- 26. A ccor di ngl y , w e af

fi r m the di s t r i ctcour t ’ s r emi t t ed puni t i ve damages aw ar d of $100, 000.

I V. CO NC L US I ON I n s um m ary , w e af

fi r m t he di s t r i ct cour t ’ s or der s deny i ng91 Tr a n s Uni o n ’ s mot i o n f o rj u d g me n ta s a ma t t e ro f l a w and
e n ter in g a r e m it te d ju d g m e n t, i n c lu d in g $ 5 0 ,0 0 0 in
com pen sat orydam ages an d $ 10 0, 00 0 in pun i t i ve d am ages, agai ns tT r ans U ni on.