Eleventh Circuit Weighs in on FCRA “Legitimate Business Purpose,” Affirms Dismissal in Favor...

In 2011 and 2013, Peri Domante’s personal information was stolen and fraudulently used to open two accounts with Dish Networks, LLC (“Dish”), a provider of television services. After being alerted to the fraud, Domante sued Dish for violation of the Fair Credit Reporting Act (“FCRA”).  The parties settled the lawsuit.  A part of the agreement, Dish promised to flag Domante’s Social Security number to preclude further unauthorized attempts to obtain Dish services. To implement this provision, Dish entered Domante’s personal information, including her date of birth and Social Security number, into an internal system designed to prevent unauthorized accounts from being opened.

In 2017, an unknown individual applied online for a Dish account using the last four digits of Domante’s Social Security number, date of birth, and first name, while using a different last name, address, and telephone number. Dish’s automated system submitted the applicant’s information to a consumer reporting agency (“CRA”) to verify the individual’s identity. The CRA matched this information with Domante and returned her credit report to Dish, which included Domante’s full Social Security number. Dish then blocked the application, and no Dish account was opened in Domante’s name.  Dish also requested that the CRA delete the inquiry from Domante’s credit record, and the CRA complied.

Domante sued Dish in the U.S. District Court for the Middle District of Florida, alleging that Dish negligently and willfully obtained her credit report without a “permissible purpose” in violation of § 1681b of the FCRA.

The trial court granted summary judgment in favor of Dish, ruling that it had a legitimate business need to verify the information that was submitted to determine the eligibility of the applicant. FULL ARTICLE

© 2020

InteliCrunch is a free service provided by a collective of people who monitor the background screening industry and how events affect not only the people in it, but even more importantly, the real human impact the industry has on today's society.*All third party logos and / or images used on this website are the sole property and / or registered trademarks of their respective companies or copyright holders. Use of these logos, images or likenesses does not, in any way, imply the endorsement of InteliCrunch by any of the businesses, brands or individuals represented, their parent companies, officers, employees, partners, or affiliates. Any such usage is for informational / news purposes only.  Any / all articles, announcements, releases or third-party-authored content is / are linked back to the original "source"  and author credit given  Furthermore, InteliCrunch is not responsible for, and does not warrant the safety of any third-party links or sites to which any viewer may be directed from InteliCrunch.  InteliCrunch has made reasonable efforts to ensure that any news or informational links on the site are from "known and reputable"  sources / websites.