Your credit report is a detailed record of your financial history, including your borrowing and repayment activities. You need it to show your creditworthiness and to secure loans, credit cards, or even rent a home. That is why you must monitor your credit report regularly.
As far as lenders are concerned, your credit score accurately reflects your financial situation. They will decide whether or not to advance your credit, and they want to avoid taking any risk that you will not pay what you owe. Thus, creditors reduce you to a number and a series of calculations that describe what type of credit risk you are. Your report will also contain information on how much money you have borrowed and if you have paid it back.
Given the critical importance of your credit report, you should closely monitor it over time, keeping in mind that creditors must report accurate information. Damaging information on your credit report can cause you to not qualify for a mortgage or a car loan. However, you can speak up if inaccurate data is on the credit report.
If you believe a credit bureau or a credit reporting agency violated the law, you can file a lawsuit seeking compensation. You should contact a credit reporting lawyer to learn whether you may have a potential lawsuit. It does not cost you anything to speak to a lawyer, and they will not even charge you to file a lawsuit on your behalf.
Do Not Let Negative Information on Your Credit Report Surprise You
The last thing you want to learn is that something is wrong with your credit report. You may be applying for a mortgage or car loan, only to find out that the lenders rejected your application because there is adverse information on your credit report.
While you can still contest this information, resolving it will take a while, and you may not get the necessary credit. You may have already taken steps in anticipation of receiving credit, such as not renewing your lease, and you may have to scramble when you cannot qualify for a mortgage.
Many people do not stay on top of their credit reports and only learn that there is false information when they fail to qualify for credit. The time to do the work is well before you decide to apply for credit, and you may need time to address any inconsistencies and even improve your credit
Meanwhile, you have rights under federal law that govern how creditors can report information and what credit bureaus may include on your report. You can take action against the credit bureau and the debt collectors themselves if they have broken the law.
Review Credit Alerts and Get Free Copies of Your Credit Report
By monitoring your credit report, you can stay informed about any changes or discrepancies that may occur. Regularly reviewing your report allows you to promptly identify errors, fraudulent activities, or signs of identity theft. Addressing these issues early on can help prevent long-lasting damage to your credit score and financial reputation.
You can pay for a credit monitoring service to receive updates and alerts when something changes on your credit report. Nowadays, some banks provide credit monitoring services as part of their offerings. Credit card companies may provide you with your FICO score so you can see when there are changes that you need to investigate.
If you have received an alert that something has changed with your credit, you need to act immediately to learn what happened and to see if there is anything that you can do about it.
You can also order free credit reports from each of the three main credit bureaus, which are:
- Experian
- TransUnion
- Equifax
You can get one free credit report each year, so it is best to space out when you order. You are best off ordering one free credit report every four months to check the reported information continuously. Make sure to review your overall score and also check each individual entry.
You may agree with the information on the credit report. Still, it is helpful to be aware of your situation so that you can repair your credit if necessary before applying for a loan.
You can see what issuers see when they evaluate you as a potentially worthy credit risk. They will base their credit decisions on whether you can repay them on time. Creditors may also vary their interest rates based on your credit history. If you have bad credit, you may not qualify for credit at all, or you may get a poor interest rate.
The Fair Credit Reporting Act Is Here to Protect You
For over 50 years, there has been a law on the books called the Fair Credit Reporting Act, which Congress passed in 1970.
The FCRA ensures that there is only accurate information on your credit report and gives you some due process, where you can challenge any inaccurate information. If the credit bureaus fail to follow the law’s procedures, you can sue them directly for damages.
Under the FCRA, you can file a dispute with the credit bureau if incorrect information is on your credit report. Usually, credit bureaus report the information that individual creditors give to them and have no reason to question it. Once you alert them that something is wrong, they must investigate it. However, if the credit bureaus believe the alert is frivolous, they can decide not to look into it further.
You Can Dispute Inaccurate Information With the Credit Bureau
Credit bureaus allow you to file a dispute online or by mail. You should include a description of what is wrong and documentary evidence that backs up your side of the story.
Credit bureaus owe you legal obligations and responsibilities. After all, they make money by being the repository of information that concerns you and determines whether you can borrow money. Usually, you are not their client, so they do not feel they owe you any customer service. However, the law says otherwise.
Credit Bureaus Must Investigate and Resolve the Dispute
The FCRA requires credit bureaus to resolve the dispute within 30 days of when you have filed it. Sometimes, they may take up to 45 days to decide on your filing, and they will look into your disputed information.
Credit bureaus may sometimes request additional information before they push forward. However, if the request seems frivolous, the law allows them not to investigate.
Credit bureaus must perform a reasonable investigation and cannot simply be a rubber stamp for whatever the creditor says. If they do not actively look into your dispute, they can become a potential target in a lawsuit.
Once credit bureaus receive your dispute, they will forward information to the creditor who reported the incorrect information in the first place. The creditor must investigate and report the results back to the credit bureau. Then, the credit bureau will decide whether to keep the negative information on your credit report.
You Are Allowed to Your Own Due Process When You File a Dispute
You have a right to defend yourself, especially if you disagree with the credit bureau’s investigation results. You can add an explanatory note to your credit report that tells your side of the story.
Creditors can review what you say, although many will only pay attention to the negative information without really listening to you. Thus, you always want to have correct information on your credit report. Accordingly, you must know what creditors say about you and contest it if necessary.
The credit bureau needs to use its own judgment and investigation before accepting the creditor’s explanation. Ultimately, you can hold the credit bureau liable for failing to discharge their obligations under the FCRA. You can hold it liable for a willful violation of its job, and you can even hold it responsible for negligence.
You Can File a Lawsuit Against the Creditor Under the FCRA
If the credit bureau refuses to make necessary changes or drags its feet, it may have to pay you damages. You can also sue the creditor who reported the wrongful information, mainly because you asked them to review their report, and they continued to make a mistake.
If you successfully file a lawsuit under the FCRA, the damages you will receive depend on whether the violation was willful or negligent. You can recover statutory damages of up to $1,000 for an intentional violation.
Then, you may also receive the actual damages that you have suffered. For example, if you lost out on a mortgage because you did not qualify because of your credit report, you may have suffered financial losses. The credit bureau or the creditor who furnished the information may be responsible for paying all the damages. You may even recover punitive damages when the defendant willfully violated the law.
If you believe that the credit bureau or an information furnisher has violated the FCRA, contact an experienced credit reporting attorney today. You have two years from the date that you discovered the violation of the FCRA or five years from the date of the violation to file a lawsuit.
How an FCRA Lawyer Helps You
It is important to note that while you can dispute inaccuracies on your credit report alone, hiring an FCRA attorney significantly increases your chances of success. FCRA attorneys have a deep understanding of the law and the knowledge and experience necessary to navigate the complexities of the credit reporting system.
They know what evidence to gather, how to negotiate with credit reporting agencies, and how to build a solid case to ensure the best possible outcome for you.
An experienced FCRA attorney can help you by doing the following:
- Investigate your case to determine whether someone has violated the law
- File a lawsuit on your behalf
- Communicate with the creditor about your dispute
- Negotiate potential compensation with the credit bureau or creditor
- Try your case in court if you cannot reach a resolution before trial
Many FCRA cases can be complex, even if only a little money is on the line. The credit bureau and creditors have attorneys who protect them from liability, and you will need sound evidence in your favor to force them to even engage in settlement negotiations.
The good news is that defendants often settle cases, especially when they have committed large-scale violations and can face significant liability. They usually know they may be in serious trouble and do not want to face the court.
It Costs You Nothing to Hire an FCRA Attorney
One of the main benefits of hiring an FCRA attorney is that they work on a contingency fee basis, meaning that they only get paid if they successfully resolve your credit report dispute. In other words, you will not have to pay a dime if the attorney does not win your case. This fee structure ensures that your credit reporting lawyer will work hard to defend your rights and achieve a favorable outcome.
Furthermore, the FCRA allows for the recovery of attorney’s fees in successful cases. This arrangement means that if your attorney can prove that there has been a violation of the FCRA and removes any damaging information from your credit report, the responsible party will have to pay for your attorney’s fees. This compensation can remove the financial burden from your shoulders and allow you to focus on getting your credit report back on track.
In summary, it costs you nothing to hire an FCRA lawyer, and the benefits far outweigh any concerns about cost. With their experience and dedication, an attorney can level the playing field and help you confidently navigate the credit reporting system. If you are dealing with inaccuracies or other issues on your credit report, reach out to an FCRA attorney who can provide the guidance and support you need.