James Greenway v. Information Dynamics, Ltd., Etc.

We adopt the careful reasoning of Judge Copple, reported at 399 F.Supp. 1092 (D.Ariz.1975). The only contention here made by the appellant is that it is not a “consumer reporting agency”. Under the Federal Fair Credit Reporting Act’s definition of a “consumer report” (15 U.S.C. § 1681a(d)), the appellant’s argument must be rejected. Not only does a report of the previous issuance of an unpayable check bear “on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, [and] personal characteristics . . .”, a check itself is, essentially, an instrument of credit.

Affirmed.

. The majority rejects that which it perceives as its Brother Wright’s principal thesis, i.e., that supposed legislative history, even if accurate rather than only speculative, can override the plain, unambiguous language of a CongressionalAct and lawful regulations issued under authority conferred by the Act.

(dissenting):

I respectfully dissent because I believe that the activities of the appellant Information Dynamics, Ltd. (IDL) do not fall within the purview of the statute.

Information about a consumer’s bad check-writing habits does concededly “bear on” his “character, general reputation, personal characteristics, or mode of living.” [15 U.S.C. § 1681a(d).] But a check drawn on a commercial bank is tantamount to cash. It is a “commercial device intended for use as a temporary expedient for actual money, and generally designed for immediate payment, and not for circulation.” Black’s Law Dictionary 301 (4th rev. ed. 1968). (Emphasis added.) See State v. Perrigoue, 81 Wash.2d 640 , 503 P.2d 1063 (1972); Automotive Tire Service, Inc. v. First National Bank of Arizona, 102 Ariz. 512 , 433 P.2d 804 (1967). Unlike most credit transactions, a merchant receiving a check does not charge interest on the obligation since he anticipates prompt presentation and payment.

Therefore, IDL’s reporting system does not facilitate the merchant’s determination of whether to extend credit. It is equally clear that such information does not relate to insurance or employment matters. [15 U.S.C. §…

524 F.2d 1145 James GREENWAY et al., Appellees, v. INFORMATION DYNAMICS, LTD., etc., Appellant. No. 75-1311. United States Court of Appeals, Ninth Circuit. Oct. 2, 1975. Rehearing Denied Nov. 5, 1975. Paul W. Holloway (argued), of Anderson & Holloway, Phoenix, Ariz., for appellant. Dan J. McAuliffe (argued), of Snell & Wilmer, Phoenix, Ariz., for appellees. OPINION Before ELY and WRIGHT, Circuit Judges, and EAST, District Judge. * PER CURIAM: 1 We adopt the careful reasoning of Judge Copple, reported at 399 F.Supp. 1092 (D.Ariz.1975). The only contention here made by the appellant is that it is not a "consumer reporting agency". Under the Federal Fair Credit Reporting Act's definition of a "consumer report" (15 U.S.C. § 1681a(d)), the appellant's argument must be rejected. Not only does a report of the previous issuance of an unpayable check bear "on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, (and) personal characteristics . . .", a check itself is, essentially, an instrument of credit. 1 2 Affirmed. EUGENE A. WRIGHT, Circuit Judge (dissenting): 3 I respectfully dissent because I believe that the activities of the…