On August 17, the U.S. District Court for the Northern District of Georgia granted preliminary approval of a $100 million class action settlement, resolving claims under the FCRA. The plaintiffs alleged that, between March 17, 2022, and April 8, 2022, a coding error at a credit reporting agency (CRA) caused certain credit scores and credit attributes reported to third parties to differ from what they would have been absent the error. The plaintiffs further alleged the CRA failed to follow reasonable procedures to assure the maximum possible accuracy of the information it reported, in violation of the FCRA. The settlement class consists of approximately four million individuals whose credit scores or attributes were purportedly affected and reported to third parties during that period.

The proposed settlement creates a non-reversionary $100 million common fund, which the motion describes as the largest class action settlement ever achieved under the FCRA. The fund will cover all payments to class members, attorneys’ fees, costs, expenses, and notice and administrative costs. Class members who submit valid claim forms within 90 days of the notice date will receive a pro rata share of the net settlement distribution amount. In exchange, class members who do not opt out will release all claims arising from the coding error, including claims under state consumer protection laws.