Alexandra Zimmer | U.S. Department of Agriculture Rural Development Rural Housing Service v. Kirtz

The United States Department of Agriculture Rural Development Rural Housing Service (“Rural Housing Service”) appeals the Third Circuit Court of Appeal’s reversal of the Eastern District of Pennsylvania’s dismissal of Kirtz’s complaint. Kirtz alleged Rural Housing Service and other defendants, including Trans Union LLC and Pennsylvania Higher Education Assistance Agency, violated the Fair Credit Reporting Act by not making a good-faith effort to investigate and correct discrepancies in the loan status that appeared on his credit report. The Fair Credit Reporting Act sets forth certain obligations for persons who provide consumer reporting agencies with credit information.

The district court’s grant of dismissal was based on the United States’ sovereign immunity. Quoting Lane v. Pena, 518 U.S. 187, 192 (1996), the district court reasoned the government’s immunity waiver “must be unequivocally expressed in statutory text.” Further, the courts have held that the scope of that immunity “must be strictly construed in favor of the government, settling any ambiguity in favor of immunity.” United States v. Williams, 514 U.S. 527, 531 (1995). The district court declined to find that the Fair Credit Reporting Act granted such explicit waiver of the United States’ sovereign immunity and therefore dismissed Kirtz’s claim.