The FCRA requires that any “action to enforce any liability created under this subchapter…be brought…not later than the earlier of … 2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability; or…5 years after the date on which the violation that is the basis for such liability occurs.” 15 U.S.C. § 1681p. Plaintiff argued that his FCRA claims is not time barred because he discovered the facts that supported his claim in 2009 or, in the alternative, the Statute of Limitations should have been tolled.

The statute of limitations for bringing suit to remedy an alleged FACTA violation is two years from discovery of the violation, but not later than five years from the violation. 15 U.S.C. § 1681p. The truncation provision, which had a phased-in effective date depending on when registers were manufactured, became fully effective in December 2006, 15 U.S.C. § 1681c(g)(3), and was met with an almost overnight onslaught of class action lawsuits.

A claim under the FCRA must be brought in federal district court not later than “2 years after the date of discovery by the plaintiff of the violation that is the basis for such liability or 5 years from the date on which the cause of action arose, whichever is earlier.” 15 U.S.C. § 1681p (emphasis added). The Fifth Circuit considered the 2003 amendment to section 1681p in rejecting the plaintiff’s claim that he could not have “discovered the violation until he researched the statute.”

[4] 15 U.S.C. § 1681n-1681o. [5] 15 U.S.C. § 1681p. [6] Spokeo, 136 S. Ct. at 1547 (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 560 (1992)). [7] Id. at 1549.

FCRA provides for a two-year statute of limitations, in certain situations. See 15 U.S.C. § 1681p. Because the plaintiff did not file suit regarding his claim that defendants failed to reasonably reinvestigate within two years of discovery of the violation, the Court granted summary judgment in favor of defendants.

FCRA also contains a statute of repose, an outside restriction requiring that FCRA claims be brought within five years of the date of the FCRA violation. See 15 U.S.C. § 1681p. The court in Blake further explained that because a motion to dismiss only tests the sufficiency of a complaint, such motions are typically only “appropriate vehicles to resolve a statute of limitations defense” if the “complaint affirmatively shows” that the “claims are time-barred.”

The FCRA provides for a two-year statute of limitation from the date of discovery of the FCRA violation, as well as a statute of repose requiring that FCRA claims be brought within five years of the date of the FCRA violation. See 15 U.S.C. § 1681p. Further, in many jurisdictions, including the Sixth Circuit, an FCRA limitations period begins to run when the plaintiff discovers the facts that give rise to the claim – not when the plaintiff discovers that these facts constitute a legal violation.

Each has a two year statute of limitations. 15 U.S.C. 1681p (earlier of two years from date of discovery or five years from date of the violation); Cal. Civ. Code § 1785.33 (two years from discovery but not more than seven years unless a defendant willfully violated the code); Cal. Civ. Code § 1786.52 (two years from date of discovery). For the two-year limit to apply, employers carry the burden to show that a “reasonably diligent plaintiff would have discovered the facts constituting the violation.”

Each has a two year statute of limitations. 15 U.S.C. 1681p (earlier of two years from date of discovery or five years from date of the violation); Cal. Civ. Code § 1785.33 (two years from discovery but not more than seven years unless a defendant willfully violated the code); Cal. Civ. Code § 1786.52 (two years from date of discovery). For the two-year limit to apply, employers carry the burden to show that a “reasonably diligent plaintiff would have discovered the facts constituting the violation.”