The Fair Credit Reporting Act (FCRA) continues to be one of the most litigated consumer protection laws in the U.S. Recent data shows a clear rise in lawsuits and regulatory attention, signaling that businesses handling credit data must continue to be proactive in ensuring compliance.
A Surge in FCRA Litigation
FCRA lawsuits are once again on the rise. From January to July 2025, filings increased by roughly 73.6% compared to the same period in 2024. Month-to-month trends highlight growing pressure: in June 2025, there were 663 lawsuits; by July, that number had climbed to 788 (WebRecon).
The last thing consumers, credit bureaus, and furnishers need are reporting errors that damage credit scores and trigger costly disputes, fines, or lawsuits. For consumers, these errors can mean higher interest rates, loan denials, increased insurance premiums, and even lost job or housing opportunities.
For credit bureaus and furnishers, managing disputes requires significant ongoing investment in staff, technology, and compliance processes. When these safeguards fail, the consequences can be severe, ranging from multi-million-dollar penalties or class-action lawsuits.
At the same time, bad actors are taking advantage. Credit repair organizations, debt relief firms, FCRA law firms, and new AI-powered credit repair tools are becoming more visible online. These tools make it easier to mass-generate disputes, track results, and exploit weaknesses in bureau processes. By streamlining fraudulent practices such as credit washing, they pose a growing threat to consumers, furnishers, and the credit ecosystem as a whole.
Regulatory Shifts: The FTC Steps Forward
While the Consumer Financial Protection Bureau (CFPB) has historically led enforcement of the FCRA, recent staffing and policy changes are opening the door for the Federal Trade Commission (FTC) to expand its role. The FTC has signaled that it intends to “reinvigorate” its oversight under the FCRA, which it considers the nation’s first major privacy law (Bloomberg Law). This renewed focus underscores that credit reporting, tenant screening, and debt collection practices remain firmly under the microscope.
With the CFPB scaling back in some areas, the FTC is positioning itself as a stronger backstop for consumer protection. For businesses, this means compliance efforts must withstand scrutiny from multiple regulators, federal and state alike.
Why Compliance Still Matters
The rise in litigation makes one fact clear: the FCRA is not only alive but actively enforced. Companies that furnish, use, or manage consumer credit data must:
- Validate the accuracy of information reported.
- Strengthen dispute investigation processes.
- Ensure transparent and compliant use of consumer reports.
Failing to do so risks more than just regulatory penalties but also damages consumer relationships and brand reputation.
That’s where the Data Quality Scanner comes into play, which helps lenders review 100% of furnished accounts, as well as 100% of disputes response to meet FCRA reporting and reasonable investigation standards. View self-guided demos of these tools in action here.
Bottom Line
Even as regulatory authority shifts, the FCRA remains a cornerstone of consumer protection. The increase in lawsuits and the FTC’s expanding role send a strong message: consumer reporting compliance is non-negotiable. Institutions that prioritize accuracy, transparency, and fairness will be best positioned to reduce risk and maintain trust in an evolving regulatory environment.
