Good v. U.S. Department of Education

Jeffrey Good submitted disputes to each of the three major credit reporting agencies, alerting them to errors in his credit reports. Two of the credit reporting agencies corrected the errors, but the third, TransUnion, did not. Mr. Good then filed suit under the Fair Credit Reporting Act (FCRA) against TransUnion, as well as the Higher Education Loan Authority of the State of Missouri (MOHELA) and the U.S. Department of Education. As to MOHELA and the Department, he alleged that they violated FCRA by failing to investigate and correct erroneous information after he notified Trans Union.

In a motion to dismiss the lawsuit, MOHELA asserted that it was immune from suit as an “arm of the state” of Missouri. The Department of Education also moved to dismiss, asserting that it was immune from suit under the principle of federal sovereign immunity. The district court held that both MOHELA and the Department were immune and dismissed the claims against them.

Public Citizen represented the plaintiff on appeal. First, our brief explained that MOHELA is not entitled to immunity because the facts show that MOHELA is not an arm of the state of Missouri. Second, the brief addressed the Department of Education’s argument that FCRA does not waive the government’s sovereign immunity from suit, explaining that the text of the FCRA unambiguously authorizes suit against federal agencies and, thereby, waives federal sovereign immunity. In an opinion issued in November 2024, the Tenth Circuit agreed with our arguments on both issues and reversed the district court’s decision. On the second issue, the court’s decision followed our Supreme Court victory in Department of Agriculture Rural Development Rural Housing Service v. Kirtz, 601 U.S. 42 (2024).