On June 30, 2026, the House Committee on Financial Services marked up several pieces of legislation, including H.R. 5775, the Fair Credit Reporting Act Liability Harmonization Act. The bill is one of NIADA’s top federal legislative priorities, and the association is working alongside a broad coalition of industry stakeholders to advance its passage. H.R. 5775 would modernize the Fair Credit Reporting Act (FCRA) by bringing its civil liability provisions more in line with those found in other federal consumer financial protection laws. Specifically, the legislation would cap statutory damages in class action lawsuits, eliminate punitive damages, and establish reasonable limits on attorney’s fees. Together, these reforms would help curb abusive litigation practices while preserving robust consumer protections and an effective process for resolving legitimate disputes. The bill was reported out of committee by a vote of 27 to 23.
As furnishers of credit information, independent automobile dealers must continue to comply fully with all of their obligations under the FCRA. Nothing in H.R. 5775 alters those responsibilities or weakens consumers’ rights under the law. Instead, the bill addresses the growing problem of opportunistic litigation by reducing incentives for meritless lawsuits that often enrich the plaintiffs’ bar without providing meaningful benefits to consumers.
H.R. 5775 will be a key issue during NIADA’s National Policy Conference on September 28–29, 2026, where independent dealers from across the country will meet with lawmakers to advocate for its enactment.
