Can You Sue Credit Bureaus?
It is a common question for people to ask who have had negative items stay on their credit report for an extended period of time. The simple answer to this question is yes but you need a lawyer’s assistance. However, there are many factors involved in answering this question and they need to be carefully considered.
The credit reporting agencies such as Experian, Equifax, and TransUnion are for-profit businesses. Their main goal is to make money. Their business practices are carefully regulated by the Fair Credit Reporting Act (FCRA). The FCRA was implemented in 1970 in order to ensure that consumer rights were protected when dealing with credit reporting agencies.
The FCRA regulates how credit reporting agencies can collect and report information. The FCRA also regulates how the credit reporting agencies interact with both consumers and creditors when handling disputes; these regulations are contained in sections 611-626.
Credit bureaus and their employees (both current and former employees) cannot be sued for libel, slander, or defamation of character when they communicate with third parties regarding a disputed item. This includes oral statements made to third parties, written statements or reports made to creditors, employers, etc. This is why Congress passed the Fair Credit Reporting Act, so you can sue them under this law.
Credit bureaus are supposed to investigate your disputes within 30 days of the oral or written dispute to them. They must conduct a reasonable investigation for what your dispute details. The key is though that the information that you are disputing has to be objectively inaccurate. It is very challenging to sue to get accurate information removed.
Credit bureaus are liable for the accuracy of their reporting even in cases where the information provided by the creditor, or other third parties is accurate. So even if a credit bureau reports inaccurate information about an account (usually something like “never late”, when in fact they were), they and the credit furnisher could be held liable for this inaccuracy.
False Credit Reporting Lawsuit
What you can do is sue the credit reporting agency under Title II of the Fair Credit Reporting Act (FCRA) which deals with consumer disputes over incorrect or incomplete information in their credit reports. You would have to prove in your case that the original creditor deliberately and or willfully ignored the FCRA by keeping inaccurate information reporting, therefore violating their duties under the law.
Credit Report Defamation
Although you can have negative items completely deleted from your credit report, you may be able to prevent them from being reflected in future credit bureau reports.
Credit bureaus are required by law to provide your past creditors with your written requests to remove information that you feel is inaccurate or incomplete. After they receive this request, the creditor must investigate within 30 days and either verify the accuracy of the information or correct it themselves. If they decide that the negative information should be removed, they may send a written statement to the credit bureaus asking them to update your record accordingly.
Defamation Of Credit Lawsuit
Negative items on your credit report cannot be removed as a result of a lawsuit, as well as the furnisher. The items just need to be inaccurate.
Can I Sue A Creditor For False Reporting?
Credit Damage Lawyers
Credit repair companies are all the same and if you are serious on getting inaccurate information removed then you use a credit damage lawyer. They can’t promise what will happen but will aggressively fight for your rights and to get the negative and inaccurate information removed. Credit repair companies charge a fee and clients on unrealistic promises. At Cook Law, LLC we offer a free consultation.
Credit repair companies are regulated by the Federal Trade Commission (FTC), and they can be under the Credit Repair Organization Act. Credit bureaus are sued for under FCRA. . The FTC’s Credit Repair Organizations Act states that any credit repair agent must fully understand federal law and limits how and when they can charge you for services.