Court: Can gov’t be sued for credit card mistakes?

WASHINGTON — The Supreme Court on Tuesday pondered whether it should allow the federal government to face millions of dollars in class-action lawsuits for violating identity theft protection laws that ban the printing of credit card numbers and expiration dates on receipts.

Government lawyers argue that the United States is immune from being sued for money over violations of the Fair Credit Reporting Act. But a federal appeal court refused to throw out a class-action lawsuit from a Chicago lawyer who found part of his credit card number and the expiration date on his $350 receipt from a government website.

John Jacobs, the lawyer for James X. Bormes, argued in court that he could use either the FCRA or a second law, the Tucker Act, which allows the government to be sued in some circumstances, to negate the government’s sovereign immunity.

“If you’re right about this, the consequences are enormous,” Justice Ruth Bader Ginsburg warned.

The federal government is the largest creditor, lender and employer in the United States, and government lawyers said in court papers that if Bormes’ suit is allowed, the government could face “massive liability.”

A federal judge in Illinois threw out Bormes’ class-action lawsuit, saying that Congress did not explicitly waive the federal government’s sovereign immunity in the FCRA. But the lawsuit was revived by the U.S. Court of Appeals for the Federal Circuit, which said the Tucker Act supplied the necessary waiver. Government lawyers argued that the appeals court should have not looked to a second law, when the FCRA clearly did not make the government liable for damages.

“The United States is governed by the substance of the (Fair) Credit Reporting Act,” Ginsburg said. “The act applies to the government, but your point is that there’s no sanction for noncompliance, even though the United States, a government system, is supposed to conform to the standards in the act?”

“Are we taking the position that even if substantive obligations run against the United States, there still wouldn’t be a remedy, at least a remedy in damages against the United States? And the answer to that is yes,” said Sri Srinivasan, who argued for the federal government. “But that’s not at all atypical under this court’s sovereign immunity jurisprudence, and it’s not at all atypical for Congress to have fashioned a scheme that runs in that way.”

But Congress must have known that the government could be affected, Jacobs said. “Knowing that the government is one of the largest issuers of credit card receipts, one would have to wonder why they would want to exclude the government in terms of protecting the public” with the Fair Credit Reporting Act, Jacobs said.

The FCRA prohibits the showing of more than the last five digits of a card number or the expiration date on a credit card or debit card receipt, and defines a person liable under the act as “any individual, partnership, corporation, trust, estate, cooperative, association, government or governmental subdivision or agency.”

Bormes’ court filing receipt from the government’s www.pay.gov website showed four digits of his credit card number and the expiration date.

Government lawyers say that since the law doesn’t specifically say the U.S. government, it retains its immunity against lawsuits. But Jacobs argued that “any” clearly includes the United States government.

“The reason that this statute was passed was to protect consumers. The Congress was clear that if any government violates the statute, it has this liability,” he said.

Justices will make a decision before the end of the term.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

Frank DeMiero founded and directed the Seattle Jazz Singers, a semi-professional vocal group. They are pictured here performing at the DeMiero Jazz Festival. (Photos courtesy the DeMiero family)
‘He dreamed out loud’: Remembering music educator Frank DeMiero

DeMiero founded the music department at Edmonds College and was a trailblazer for jazz choirs nationwide.

Provided photo 
Tug Buse sits in a period-correct small ship’s boat much like what could have been used by the Guatamozin in 1803 for an excursion up the Stillaguamish River.
Local historian tries to track down historic pistol

Tug Buse’s main theory traces back to a Puget Sound expedition that predated Lewis and Clark.

Archbishop Murphy High School on Friday, Feb. 28 in Everett, Washington. (Will Geschke / The Herald)
Former teacher charged with possession of child pornography

Using an online investigation tool, detectives uncovered five clips depicting sexual exploitation of minors.

A person waits in line at a pharmacy next to a sign advertising free flu shots with most insurance on Thursday, Feb. 27, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Have you had the flu yet, Snohomish County? You’re not alone.

The rate of flu-related hospitalizations is the highest it’s been in six years, county data shows, and there are no signs it will slow down soon.

City of Everett Principal Engineer Zach Brown talks about where some of the piping will connect to the Port Gardner Storage Facility, an 8-million-gallon waste water storage facility, on Thursday, Feb. 27, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Port Gardner Storage Facility will allow Everett to meet state outflow requirements

The facility will temporarily store combined sewer and wastewater during storm events, protecting the bay from untreated releases.

Founder of Snohomish County Indivisible Naomi Dietrich speaks to those gather for the senator office rally on Wednesday, Feb. 5, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Membership numbers are booming for Snohomish County’s Indivisible chapter

Snohomish County’s Indivisible chapter, a progressive action group, has seen… Continue reading

‘You guys are in it’: Everett warned to prepare for severe thunderstorms

In addition to strong hail, wind and rain, the National Weather Service says the storms include the small chance of a tornado near Everett.

Dr. Katie Gilligan walks down a hallway with forest wallpaper and cloud light shades in the Mukilteo Evaluation and Treatment Center with Amanda Gian, right, and Alison Haddock, left, on Monday, March 24, 2025 in Mukilteo, Washington. (Olivia Vanni / The Herald)
Partnership works to train Snohomish County mental health doctors

Compass Health works with medical students from Washington State University to provide psychiatry training. Both groups hope to fill gaps in much-needed services.

Edmonds red-light camera program begins Friday

The city has installed cameras at two intersections. Violators will receive warnings for 30 days before $145 fines begin.

Snohomish County Elections office to host candidate workshops in April

The workshops will cover filing requirements, deadlines, finances and other information for aspiring candidates.

Port of Everett seeks new bids for bulkhead replacement project

The first bids to replace the aging support structure exceeded the Port of Everett’s $4.4 million budget for the project by 30%.

‘An uphill battle’: South County firefighter facing his toughest fight

Nick Jessen, 38, has stage four lung cancer, a disease disproportionately affecting his profession.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.