Discover What You Can Sue The Credit Bureaus For!
The 4 Most Common Credit Bureau Violations
Unfortunately, the credit bureaus, debt collectors and creditors know that it is unlikely that you will sue them in court due to the time and expense. Because of this they can easily (and do) take advantage of you by reporting information about you in violation of the laws set up to protect you.
By learning some basic law (RIGHT HERE) and how small claims court works you can turn the tables on them, using the courts to force them into compliance with the law. We are not giving advice here, but suggesting that if you feel any of the following violations apply to you, speak with a consumer advocate attorney about suing.
Suing The Credit Bureaus
First Violation
If the credit bureau refuses to correct information on your credit report after being provided with proof, you can sue them for defamation and willful injury. (FCRA Section 623). You may be able to collect up to the amount of damage incurred and possibly punitive damages.
Second Violation
If the credit bureaus reinsert a removed item from your credit report without notifying you in writing within five business days, you can sue them for violating FCRA Part (A)(5)(B) which carries a fine of $1000.00.
Third Violation
If the credit bureaus fail to respond to your written disputes within 30 days, a 15-day extension may be granted if they receive information from the creditor within the first 30 days, you can sue them for violating FCRA Section 611 Part (A)(1) which carries a fine of $1000 per violation.
Fourth Violation
Re-aging an account is a violation of the FCRA (Sec. 605) If the bureaus update the date of last activity on your credit report in the hopes of keeping negative information on your account longer, you can sue them, which carries a fine of $1000.00 per violation.
Suing The Creditor
In July 2010, Congress forced creditors to comply with the FCRA and gave you the right to monetary reward for any violations.
First Violation
The creditor must report you credit history accurately, if they do not, you can sue them for defamation, and financial injury. See US Court of Appeals, Ninth Circuit, No. 00-15946, Nelson vs. Chase Manhattan for precedent. This violation carries a fine of $1,000.00 per violation.
Second Violation
If you dispute a debt with the creditor, and they fail to report the dispute to the credit bureaus, they will be in violation of Section 623, which carries a fine of $1,000 per violation.
Third Violation
If the creditor pulls your credit report without your permission, you can sue for injury to your credit report and credit score, which carries a fine of $1,000.00. (FRA Section 604 (A)(3).
This is knowledge which neither the creditors nor the credit bureaus want you to know. There is further reading in our library. In addition, order your FREE copy of “The Top Ten Credit Repair Tips” This should get you started in defending your rights and restoring and protecting your credit.
I really like that one. Keep up the good work on your blog.
This is all well and good if you have the many thousands of dollars it would cost to take the Credit Agency to court. The government giveth and then taketh away! Again,
Not always the case. Small Claims Court typically costs less the $100 and forces the creditor or credit bureaus into your local arena. Also, many consumer advocate attorneys will represent you for NO upfront costs, taking their fees from the settlement. We are finding that the bureaus are more reluctant to go to court without “proof documents”. The courts are continuing to favor consumers, especially in this current economic environment.