Under Safeco Insurance Co. v. Burr (2007), a willful FCRA violation includes both knowing violations and reckless ones, meaning the company ran an unjustifiably high risk of violating the law that was known or so obvious it should have been known.
Section 1681n of the FCRA applies to any person who “willfully” fails to comply with the Act. The statute does not define the word, so the Supreme Court did in Safeco Insurance Co. of America v. Burr, 551 U.S. 47 (2007).
The Safeco standard
- Willful includes reckless. The Court held that when Congress makes willfulness a condition of civil liability, the term ordinarily covers reckless conduct, not just knowing violations.
- Reckless is an objective test. A company acts recklessly if it runs an unjustifiably high risk of violating the statute, one that is either known or so obvious that it should be known.
- Reasonable readings are protected. In Safeco, the insurer’s reading of the statute was wrong, but the Court found it was not objectively unreasonable because the text was unclear and no court or agency guidance had addressed the question. So the violation was not willful.
What this means for consumers
You do not have to prove a company intended to harm you or knew it was breaking the law. Proving that it acted with reckless disregard of a clear legal duty can be enough. Evidence that may be relevant includes:
- Repeating the same error after being told about it through disputes.
- Dispute procedures that do little more than ask the furnisher to confirm its own data.
- Policies that conflict with clear statutory text or established case law.
- Prior complaints, regulatory actions, or lawsuits about the same practice.
Why it matters
A willful violation opens the door to statutory damages of $100 to $1,000 as an alternative to actual damages, and to punitive damages. A negligent violation under § 1681o allows actual damages, costs, and fees only.
Whether conduct was willful is a fact-specific question. A free case review can help evaluate it, with no fee unless we win.
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Updated November 2026. This page is general information, not legal advice.