355 F. Supp. 3d 731
E.D. Ill.2019Background
- Plaintiff Terrace Browner alleges American Eagle Bank accessed her TransUnion consumer credit report without consent or any permissible purpose under the FCRA, obtaining personal data (addresses, DOB, employment, phone) and causing dignitary and financial harm.
- Complaint asserts unauthorized access amounted to a publication viewed by defendant’s employees and will be recorded on her credit report for two years.
- Defendant moved to dismiss for lack of Article III standing, arguing Browner pleaded only a bare procedural violation post-Spokeo and offered only conclusory allegations of injury.
- The sole legal claim is violation of 15 U.S.C. § 1681b (FCRA) for impermissible use/obtaining of a consumer report.
- The district court evaluated whether unauthorized access to a consumer report constitutes a concrete, particularized injury in fact under Article III, considering Spokeo and Seventh Circuit precedent.
- Court denied the motion to dismiss, holding alleged unauthorized access and invasion of privacy alleges a concrete injury sufficient for standing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Article III standing: did unauthorized access to consumer report allege injury in fact? | Unauthorized access invaded Browner's privacy and caused dignitary/financial harm and risk to credit/reputation. | Alleged only a bare statutory/procedural violation post-Spokeo; conclusory injury allegations insufficient. | Court: Alleged unauthorized access without permissible purpose is a concrete, historically cognizable privacy injury that satisfies injury in fact. |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (describes the three elements of Article III standing and "irreducible constitutional minimum")
- FW/PBS, Inc. v. Dallas, 493 U.S. 215 (1990) (plaintiff bears burden to establish each standing element)
- Groshek v. Time Warner Cable, Inc., 865 F.3d 884 (7th Cir. 2017) (discusses when procedural FCRA violations constitute concrete injury)
- Gubala v. Time Warner Cable, Inc., 846 F.3d 909 (7th Cir. 2017) (retention-of-data case finding no standing absent dissemination or misuse)
- Robertson v. Allied Solutions, LLC, 902 F.3d 690 (7th Cir. 2018) (denial of pre-adverse-action disclosures under FCRA can constitute concrete injury)
- Perrill v. Equifax Info. Servs., LLC, 205 F. Supp. 3d 869 (W.D. Tex. 2016) (unauthorized disclosure of credit reports recognized as concrete privacy injury)
- United States v. Bormes, 568 U.S. 6 (2012) (FCRA includes consumer privacy among its central purposes)
- U.S. Dep’t of Justice v. Reporters Comm. for Freedom of the Press, 489 U.S. 749 (1989) (recognizes a right to control dissemination of personal information)