Understanding your Rights under the Fair Credit Reporting Act

You have the right to know the contents of your credit file and have any inaccuracies corrected promptly. Contact the credit agency that issued a report leading to a credit, housing, or employment denial. You are eligible for a free report if the information was used against you, you are a victim of identity theft with a fraud alert on your file, your file contains fraudulent information, or you are on public assistance or expect to apply for work within 60 days.

If you have fallen victim to identity theft, you have the right to request transaction records related to the theft, such as loan or credit card applications, from businesses. You can also authorize law enforcement agencies to request this information. Businesses must provide the requested information within 30 days. Some companies may be hesitant to disclose this information.

If your rights have been violated under the FCRA, you are entitled to seek actual or statutory damages, recover attorney’s fees and court costs and request punitive damages.

There are numerous violations of the Fair Credit Reporting Act that are commonly seen, involving the companies reporting information and the major bureaus handling that information. Some of these violations include furnishing and reporting old information, inaccurate reporting of debts, failure to update credit reports, mixing files, and not following proper debt dispute procedures for both credit bureaus and creditors. Additionally, privacy violations can occur if your credit report is disclosed to entities without a valid need.

Common violations of the FCRA include:

• Failure to update report to accurately reflect settlements and other forms of debt resolution.
• Failure to update reports after completion of bankruptcy.
• Agencies might also report old debts as new and report a financial account as active when it was closed by the consumer.
• Creditors give reporting agencies inaccurate financial information about you.
• Reporting agencies mixing up one person’s information with another’s because of similar (or same) name or social security number.
• Agencies fail to follow guidelines for handling disputes.
• Pulling your report for an impermissible purpose. For instance, viewing a credit report to determine if you have assets before filing certain kinds of lawsuits.
• Failing to send you notifications about your credit report or score in violation of the FCRA.
• Reporting agencies providing information to unauthorized persons or businesses.

What you need to do if your FCRA rights are violated

If you have been declined credit or suspect that a credit report has unfairly affected you, identify the national credit agency that supplied the report. The landlord or bank that rejected your application will inform you of the agency responsible for the report.

Reach out to the agency and ask for a copy of the report. Be aware that if the report contains inaccuracies, other agencies may be using the same faulty information in their reports. The agency that furnished the data must provide you with a free copy of the report within 30 days of the denial.

In case you discover incorrect or outdated information, inform the credit reporting agency in writing, outlining the mistake and demanding immediate correction. If the agency fails to take action after an investigation, and you remain convinced of the errors in the report, contact either the Federal Trade Commission or the nearest state attorney general’s office.

Also contact one of our Legal Access Plan FCRA attorneys for a free consultation. 

Seeking Compensation for FCRA Violations

The Fair Credit Reporting Act contains crucial information for an individual’s financial well-being. In cases of FCRA violations, the affected party has the right to pursue legal action to recover damages.

The amount of compensation that can be obtained largely depends on whether the violation was intentional or negligent. Parties that may be held accountable for violations include credit reporting agencies, businesses providing information to credit agencies, or entities using credit report data for decision-making related to employment or housing.

Intentional FCRA Violations

These are considered more severe violations and typically result in higher compensation, as they involve the deliberate actions of an agency, business, or individual that knowingly caused harm.

Compensable damages in these cases may include:

– Actual damages, which can be proven to have resulted from the actions or inaction of the responsible party, with no set limit on the amount of compensation.

– Statutory damages, which do not require proof but are typically capped between $100 and $1,000.

– Punitive damages, awarded to penalize the violator and prevent future FCRA violations, with no specified limit on the amount.

– Attorney fees and court costs, which may be covered if the lawsuit is successful.

Negligent FCRA Violations

When an agency, business, or individual acts carelessly or fails to exercise reasonable caution in handling your credit information, resulting in harm, it constitutes negligent behavior and may lead to financial compensation.

The available damages for negligent violations mirror those for intentional violations, including actual damages (unlimited), statutory damages (usually ranging from $100 to $1,000), punitive damages (unlimited), and coverage of attorney fees and court expenses.

Deadlines

There are four important deadlines to keep in mind when handling matters related to the Fair Credit Reporting Act.

Any incorrect information should be rectified or removed within 30 days of your dispute (or within 45 days if you provide further information following the submission of your written dispute).

Businesses or other entities providing information must inform you of any adverse information reported to the credit bureaus within 30 days.

If you identify an inaccuracy in your credit report, consult a Legal Access Plan FCRA attorney.  They can educate you regarding your rights, guide you through this complex process, get you compensation you may be entitled to, and even help discharge or favorably settle debt that you have challenged.