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.

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About Safe Haven Credit

I don't much like the pompous attitude of the credit bureaus and the damage they have caused consumers and businesses, so I like to rant about it here...
This entry was posted in bad credit, Consumer Advocate, credit bureaus, credit law, Credit Repair, credit Scores, Debt collection, FCRA and tagged , , , , , , , , , , , , . Bookmark the permalink.

19 Responses to Discover What You Can Sue The Credit Bureaus For!

  1. I really like that one. Keep up the good work on your blog.

  2. Terri J. Conklin says:

    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.

  3. Peggy Hember says:

    I have a new issue. My ex owes me more than 20K in back child support. The child support recovery office is telling me that they report it to Equifax. Yes this debt doesn’t appear on my ex’s credit report. When I ask Equifax why it isn’t there, they give me the run around and tell me they can’t give me specific info on his credit history. I am only asking for them to tell me why a debt owed to me doesn’t appear when it is court ordered. I don’t care about the rest of his report.. but I don’t think it is fair that this debt doesn’t appear. What can I do about the credit bureau not placing this debt on his credit record?

    • Peggy, about the only thing you can do is pressure the support office to file the debt with the bureaus. It is unusual that they haven’t already done so. What state are you in? Thanks Mark

      • trisha says:

        No city, state, county or federal agency reports to credit bureaus. These items make it onto your report only when the credit bureaus send their vendors to collect the info from the courts. I am presently going after the three CBs as we speak.

      • Trisha- thanks for your comment and you are exactly right. Keep us posted on your results. We would love to let the world know the truth about the credit bureaus. Mark

  4. Rick says:

    Dear Peggy… Are there not more important things in your life than retribution? What serious importance would HIS credit report have on YOUR life? Take the kids to the park.

  5. MaryBeth says:

    Do you have a list of attorneys in the Mobile, Alabama area who will sue creditors and the credit bureau?

  6. Terry V. says:

    I sued in small claims court credit bureau got $50.000 in fimds and I got the max of $5,000 and they are never alowed to report my credit again because I proved there was a fraud account reported and they did nothing about it so I sued them. Its up to the court in hand to deside if they will let you sue in small claims or not.

  7. Terry V. says:

    Small claims are not aloud to have attorneys involved. And its hard for them to proove anything you just have to have the proof when and before you go to court most has to be filed with the application is filed at court, and this all cost me $47.00 so it dont cost thousands just make shure info is submited at time of application, its easy.

  8. Joseph says:

    Do you have a list of attorneys that will sue in Troy, nc

  9. Joan Stagg says:

    in early 2012 I was laid off from my employer of 28 years. my credit score was 802 at the time but Unfortunately I filed Bankruptcy in early 2012, My mortgage servicer was Indi Mac/ One West.
    Indi Mac/ One west notified the credit bureaus almost 7 times about the bankcruptcy. I have my credit monitored, and print out the report on a quarterly basis. it took over 2 years but I ws able to get my score back up to a 749 by the month of April 2014.
    In late 2013 Indi Mac/ One West transferred my Mortgage to a new servicer “Ocwen Loan Servicing” after 8 Months of paying my Mortgage a week early each Month. Ocwen notified the credit bureaus that I was Delinquent for the month of March 2014. They also Re-Reported The bankruptcy from 2012 when they weren’t even my servicer at the time… I have called and tried to get them to change this. I even sent them a fax showing all of my payment history of my property and that I had never been delinquent EVER.
    yesterday I got another email from the credit monitoring service and it showed that Ocwen reported the same information again making it look like I just filed Bankruptcy and was delinquent in the month of April 2014l. My credit score has been knocked down by over 100 points.. is there anything I can do?? Is it legal for the New Servicer to report something from over 2 years ago, when they were not even the mortgage servicer at the time??

    • Joan Stagg says:

      I live in New York

    • Typically it is not the bank that reports bankruptcy information. This information is usually gathered by the credit bureau scavengers searching local court records. If the reporting dates are incorrect this information can be corrected typically by writing the credit bureau. You definitely don’t want it to appear you have filed another bankruptcy. Check the court number to verify it is the same filing and not someone else’s.

      Late payments reported by the bank are another problem. If you have the documentation to prove they are in error, under Sec. 617 of the FCRA you can request PROOF documentation. They are required to comply. You should do this to see what they are basing this late payment on. If they are unable to provide the proof they must DELETE the information reported to the bureaus. If they don’t, in my opinion, they have damaged your reputation and invaded your privacy. Seems like good reasons to litigate (in my opinion).

  10. Pingback: Suing The Credit Bureaus? Have A Purpose | Safe Haven Credit

  11. Keith Boyd says:

    In 2013 I was sued by a debt collecter they reaged three old bills had it on all three credit reports then when I showed up in court with the proof they backed down I got a default judgement only cause they lawyer new better.Can I still sue the credit reporting bureaus they new the real dates all along..keith…phila,pa

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