ACA Joins Coalition Supporting FCRA Reform Legislation

The legislation would create important reports to curb abusive litigation practices while maintaining consumer protections in the FCRA.

ACA International has joined a coalition of financial services, technology and banking associations to support important legislation to align the Fair Credit Reporting Act with other financial consumer protection laws by limiting statutory damages in class-action lawsuits.

The legislation, the FCRA Liability Harmonization Act, H.R. 5775, was introduced in October 2025 by U.S. Rep. Barry Loudermilk, R-Ga.

In addition to the limits on statutory damages, the legislation would also eliminate punitive damages and limit attorneys’ fees.

“Together, these reforms would help curb abusive litigation practices while preserving strong consumer protections and an effective dispute resolution process,” the coalition’s letter (PDF) to U.S. Reps. French Hill, R-Ark., and Andy Barr, R-Ky., states.

The letter notes the FCRA “is out of alignment with other consumer financial protection statutes by allowing class action plaintiffs to pursue unlimited damages — including punitive damages. In contrast, there are a number of other federal consumer protection laws that establish reasonable limits on economic liability.”

As a result of these inconsistencies, lawsuits are often filed based on little or no actual injury, rather on novel legal theories and pressure businesses into settlements.

Businesses’ resources are then diverted away from job creation and innovation, driving up costs for consumers, to compensate for the settlements.

The coalition urges Congress to pass the FCRA Liability Harmonization Act to curtail abusive litigation practices while sustaining consumer protections.

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