Credit Reporting Litigation

Need help fixing a credit report error?

More and more consumers are finding it extremely difficult to correct mistakes on their credit reports. Consumers often say the Credit Reporting Agencies and creditors ignore their complaints. Fixing mistakes on credit reports takes time and patience. The process can feel frustrating. Many consumers say no one listens to them. They feel powerless. In short, they say the companies give them the runaround. If you face this situation, we invite you to contact a  lawyer at the Law Office of Joseph Mauro for help. Bringing a lawsuit may be necessary to get the attention of the companies involved, and to get the problems fixed.

Your Rights Under the Fair Credit Reporting Act

The Fair Credit Reporting Act (FRCA) permits consumers to sue the Credit Reporting Agencies (CRAs), and the companies reporting the information to the CRAs. The law also allows the consumer to ask that the Defendant be ordered to pay the consumer’s reasonable attorney’s fees.

The Basics

Consumer credit reports are files of financial information. Consumer Credit Agencies (CRAs) collect and store these files. The three major CRAs are Experian, Equifax, and TransUnion. They gather information from financial institutions like credit card companies and banks. Then they sell that information to other people and companies.

These files include credit card data, personal identification (such as address, date of birth, and social security number), and public records like judgments or bankruptcies. Companies use credit reports to decide if a consumer is a good credit risk. In other words, they check if the consumer can be trusted to repay borrowed money. The reports show the consumer’s credit history.

Unfortunately, many consumers find that their credit report contains incorrect information. Many consumers also find that it can be extremely difficult to try to correct the bad information. Consumers often find that the CRAs can be extremely difficult to communicate with, and that their complaints get them nowhere.

Lawsuits Are Often the Only Answer

Consumers are permitted to sue companies for reporting incorrect information. Consumers can also sue the companies that report the incorrect information to the CRAs. While there are certain things that a consumer may have to do before bringing suit, consumers often find that bringing a lawsuit is the only way to correct errors on their credit report. The law also permits the consumer to ask the Court to order the defendant to pay reasonable attorney’s fees.

What the Fair Credit Reporting Act Says: 

The FCRA is a law that protects consumers by requiring fair treatment in matters related to their credit reports. The law gives consumers specific rights. The following is a brief overview of those rights, though it doesn’t include every right the FCRA provides.

• Consumers can dispute inaccurate information with the CRA. If a consumer believes that information appearing on their credit report is wrong, the consumer may tell the CRA that the information is wrong. The CRA must then reinvestigate the information. If the CRA finds that the information is wrong they must correct it or delete it. (You should keep a copy of all letters, and send all letters by certified mail, return receipt requested.)
• Consumers can dispute inaccurate information with the source of the information. If a consumer believes a creditor—like a credit card company or bank—is reporting inaccurate information to the CRA, the consumer can dispute it directly with the creditor. If the creditor agrees, they must correct the information. If the consumer does not agree with the creditor, the creditor may continue to report the information, but must include a notice that the consumer disputes the information. Be careful here however: If you decide to dispute the information with the creditor, you should also dispute the information with the CRAs as well. Disputing the information just with the creditor will not preserve all of the consumer’s rights.
• CRA’s may not report old information. In most cases, a consumer credit report may not contain negative information that is more than seven years old; ten years for bankruptcies.
• Access to Consumer Credit Reports is limited. Only certain people or companies can pull a consumer’s credit report, and they must have a legitimate purpose for doing so. For example, if a consumer applies for credit, the creditor may pull the consumer’s report.
• Consumers may sue for violations of their rights. When someone violates a consumer’s rights under the FCRA, the consumer may have the right to sue. Often, consumers must file lawsuits just to correct errors on their reports. The FCRA lets consumers ask the Court to order the violator to pay their reasonable attorney’s fees.