In a recent ALM article, Eddie L. Holiday III examines the Eleventh Circuit's decision in Milgram v. Chase Bank USA, a case involving an employee who fraudulently opened credit card accounts in a business owner's name and used company bank accounts to make payments on those accounts. Despite substantial evidence of identity theft and a criminal conviction, the court ultimately found that the plaintiff could not establish that the bank's investigation was unreasonable under the Fair Credit Reporting Act (FCRA).
Eddie explores the distinction between actual authority and apparent authority, the standards governing credit furnishers' investigations of disputed accounts, and the challenges consumers face when contesting the accuracy of information reported to credit bureaus. He also highlights practical lessons for financial institutions and discusses how the court's reasoning may influence future litigation involving credit reporting disputes and declaratory judgment actions.
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