Credit reporting errors are sadly all-too common. Despite federal laws that require the credit reporting companies to produce accurate data, we have seen time and time again that Equifax, TransUnion, and Experian often fail in this obligation. This can lead to disastrous financial consequences for people like you.
If you believe that you have been the victim of a credit rating error, you may have the ability to demand compensation for any adverse effects you sustained as a result. The same laws that require the credit reporting bureaus to produce an accurate report also allow consumers to demand compensation through lawsuits in United States District Courts. A credit report attorney could also help obtain a fair result through negotiations with the credit agency. They have helped many people like you to dispute credit report errors and regain control over your finances.
Perhaps the simplest example of a credit report error is a false mark that indicates a failure to pay a bill or loan. Something as straightforward as a credit card company failing to report this payment to the credit agencies could have a harsh impact on your overall credit report. In fact, errors on the part of banks, loan providers, and other financial companies are a major source of credit reporting disputes.
Errors could also be the result of more nefarious activity. Identity theft could cause a credit report to contain false marks about loan applications or other financial activity tied to the thief. With many financial transactions now taking place online, it has become even easier for others to assume a person’s identity.
Credit history errors might also occur at the agency level if the credit reporting agency makes a clerical error concerning the input of data. They could also allow issues such as mixed or merged credit reports, or false closing of accounts, to appear and remain on a credit report. Each of these issues justifies you reaching out to the credit bureau and demanding a fix.
It is impossible to understate the importance that an accurate credit report has on a person’s life. A false or inaccurate report can occur at any time and lead to disastrous consequences for your financial stability if it is not remedied.
Many people discover a credit error when they are applying for new financing. For example, when attempting to buy a car, a credit report may result in a score that appears lower than expected, which could lead to a heightened interest rate or even a refusal to offer a loan to that person. A similar situation could occur when you are looking for a new apartment or even applying for a job.
Other people discover credit errors when they receive notice of a collection effort or are served with a lawsuit. In these situations, they may learn that another person has taken out a loan using their information and never made payments on the items in question. Knowing how to address these vital problems is essential for both your immediate and long-term financial health.
The legal basis for seeking a fix to an erroneous credit report comes from the protections offered in The Fair Credit Reporting Act (FCRA). This important group of laws regulates the credit reporting bureaus and obligates them to fix errors in their data that come to their attention. Sadly, these companies will not notice or address every error, and it falls to affected consumers to bring these issues to their attention.
The first step in this process involves filing a statement of dispute with the relevant bureau. This informs the agency of the error and the statement should include evidence of why the mistake requires a solution. If this fails to bring the desired result, a formal complaint with the Fair Trade Commission (FTC) may be appropriate. This complaint could result in a federal investigation into the credit agency’s business dealings.
A final option involves bringing the case to a United States District Court. FCRA offers a cause of action that allows consumers to demand remedies for either negligence or willful misconduct involved in a failure to fix a credit report. These lawsuits can demand payments to cover your losses or even provides financial awards for a willful failure to take appropriate action.
One of the most common questions that an attorney hears is, “What can I do about errors on my credit report?” This is because these errors can cost you thousands of dollars in interest rates, increase your insurance premiums, or even make it difficult to obtain a job or housing.
When these errors are genuine, you have the right to demand a fix. This could include an amended credit report and direct compensation for a failure to amend a known issue. Talking with a lawyer now could help you to identify the source of the dispute and seek out a fair resolution.