Cheryl Beaudry v. TeleCheck Servs., Inc.
20-6018
| 6th Cir. | Jul 27, 2021Background
- Tennessee changed driver’s-license numbers from eight to nine digits (a leading "0" was added to existing numbers).
- TeleCheck updated its system to accept nine-digit numbers but did not link them to customers’ original eight-digit numbers.
- Because TeleCheck’s predictive-scoring logic treated an unlinked nine-digit number as a new writer, failure to link could increase the chance TeleCheck would recommend a decline (Code 3).
- Cheryl Beaudry sued TeleCheck under the FCRA §1681e(b) for failing to follow reasonable procedures to assure maximum possible accuracy; the Sixth Circuit previously held she could pursue a willful-violation claim without alleging actual damages (Beaudry v. TeleCheck, 579 F.3d 702).
- Beaudry died; remaining relief sought was statutory damages. After Spokeo and TransUnion, the district court granted summary judgment for TeleCheck for lack of Article III standing; the Sixth Circuit affirmed.
- The court emphasized that TeleCheck’s records showed no declines tied to Beaudry’s nine-digit number (declines used her eight-digit number and Code 4), and Beaudry’s contrary theory relied on speculation and lacked traceability and redressability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing — causation/traceability | Beaudry: several checks were declined because TeleCheck failed to link her numbers | TeleCheck: no evidence links any declines to its failure to link numbers | No traceability; Beaudry offered no evidence tying any specific decline to TeleCheck’s conduct |
| Standing — redressability of risk | Beaudry: being placed at risk of rejection suffices for statutory damages | TeleCheck: statutory damages cannot remedy a mere risk of future harm | Statutory damages cannot redress a mere risk; plaintiff must show an actual concrete injury |
| Informational injury | Beaudry: inaccurate linkage in TeleCheck’s database is an informational injury | TeleCheck: mere inaccurate information is insufficient for Article III injury | Mere existence of inaccurate information does not confer standing (Spokeo/TransUnion) |
| Evidence/speculation | Beaudry: lost TeleCheck records mean declines likely occurred but were not preserved | TeleCheck: plaintiff’s theory is speculative and undeveloped | Speculation cannot establish causation at summary judgment (Parsons) |
Key Cases Cited
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (standing requires injury in fact, causation, redressability)
- Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (bare procedural FCRA violations do not automatically confer standing)
- TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (statutory damages cannot remedy a mere risk of future harm; concrete harm required)
- Beaudry v. TeleCheck Servs., Inc., 579 F.3d 702 (6th Cir.) (earlier holding that willful FCRA claim may proceed without alleging monetary damages)
- Parsons v. U.S. Dep’t of Justice, 801 F.3d 701 (speculation insufficient to establish traceability at summary judgment)
- Bench Billboard Co. v. City of Cincinnati, 675 F.3d 974 (traceability principles in standing analysis)