Did you know that the Federal Trade Commission found that one in five consumers have at least one error on their credit reports? If you see an error on your credit report, then you are legally allowed to dispute it with your credit report agency.
Unfortunately, oftentimes these agencies simply ignore the problem. When this happens, you should consider FCRA litigation as a way of holding these credit report agencies accountable.
In this article, we’ll walk you through some of the ins and outs of FCRA litigations, as well as the steps you should take before pursuing them. Let’s get started!
What Credit Bureau Legally-Mandated Obligations Fall Under the FCRA?
The three main credit agencies in the United States collect a variety of information on consumers when compiling their credit reports.
This includes things like any outstanding debt you have, payment histories, employment histories, and other types of information. Because this information is so personal, these agencies are legally responsible for certain obligations to consumers.
The first obligation is that they must provide you with a credit report when requested to do so. This report must be free and provided within a short window of time.
The second obligation is that if you dispute something on your credit report, then they investigate it. If they find any inaccurate information, then they must delete or correct it.
They’re also obligated to remove outdated information that no longer applies to your credit report. Finally, it’s the responsibility of these agencies to only share your credit report and score with those who are legally allowed to view it. Any unauthorized sharing is illegal.
What First Steps Should You Take When You See a Credit Report Issue?
Now that you know the legal obligations of the credit agencies, what should you do if they don’t fulfill one of them? Regardless of if you want to press charges, there are certain things you should try first before going to court.
Most of them involve filing complaints and keeping a close record of the complaints. First, you should send a letter to your credit bureau. You should include any errors or mistakes, including:
- Identity mistakes like a misspelled name, phone number, or address
- Accounts that have not been reported correctly
- A credit limit error or a mistake in the balance
- Reinserting incorrect information into the report after you worked to correct it
Once you send the letter, the credit bureau has forty-five days to respond to the issue. If they don’t resolve the issue, then file a complaint with either the credit agency or the creditor.
If the issue isn’t resolved, then you can try complaining to either your State Consumer Protection Agency or your Congressional Representative. In some cases, these entities can help enforce the laws that are specific to their state.
If no resolution comes from any of these logged complaints, then you should move on to legal action.
When Should You Consider Suing?
You should consider suing if the mistake made by the credit bureau caused serious harm to you. This can typically occur if the agency continues to hand out false information about you even when you’ve asked for it to be corrected.
Inaccuracies on a report can make it next to impossible for you to get a loan on a car, house, or similar type of lending. It can also lead to higher interest rates and bad loan deals.
If your identity was stolen due to negligence, then it can take years before you sort out the damage caused by the agency. Under 15 U.S.C. § 1681 and following the Fair Credit Reporting Act (FCRA) you are allowed to sue a credit reporting agency. However, the agency must be either willfully negligent in its duties or noncompliant.
To prove this, you must seek the help of an experienced FCRA litigation expert. They can help you identify whether or not you have a strong case and the number of damages that you should seek.
Unfortunately, you must wait either two years after the discovery of the problem or five years have the damaging behavior occurred. Whichever one is sooner will suffice.
Keep in mind that if a creditor is responsible for the mistake, then you can also seek legal action against them. However, keep in mind that there are a variety of ways that creditors can avoid legal obligation for the damages that they cause. As such, these types of cases tend to not be as popular.
How to Find a Lawyer That Deals With Credit Report Litigation
If you want to sue the agency, then you must find a lawyer that specializes in suing debt collectors and credit agencies. This experience will be invaluable for helping you win your case. But how do you find the right type of lawyer?
You can start by asking around for referrals. If this fails, then consider going through nonprofit resources like the National Association of Consumer Advocates website.
You can also consult your local legal directory for some good options. Once you find a lawyer consult with them, and decide whether or not they should take on your case.
It’s also important to look for legal help in the specific state that you plan on filing the lawsuit. For example, if you live in NYC, then it’s important to find a New York FCRA litigation lawyer instead of, say, a Florida one.
Want More Content? Keep Reading
We hope this article helped you learn some of your options when you discover an issue with your credit report. Ideally, the crediting reporting body will fix the mistake on its own.
However, if they don’t comply, then you should discuss your options with an FCRA litigation attorney. That way, you get a credit score that accurately reflects your current financial situation, as well as damage recovery.
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