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 if you have items on your credit report, but they are false? Can you sue the original creditor for ignoring the FCRA when it deleted the information from their records? Yes! The FCRA is a law that regulates how creditors must report negative information to the three nationwide credit reporting companies – Equifax, Experian, and TransUnion. The FCRA is intended to regulate how creditors report negative information but is not intended for consumers suing creditors for violating the statute.

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

When you apply for credit, the lender must conduct a “reasonable investigation.” This applies to both paid and free services. The creditor must verify your identity and the information on your application. If there is evidence that something inaccurate appeared on your report, you may be able to dispute the information and have it removed from your record.

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

If you want to sue for defamation, you are unable to do this. The law the governs all of credit reporting is the Fair Credit Reporting Act. Defamation of credit lawsuits do not exist and suing under FCRA is the proper remedy.

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?

You could sue a creditor for false reporting. The statute of limitations for this type of lawsuit varies by state but is typically from 2 or 5 years. In order to file the suit, you would have to show that the creditor made a report on your account which was beyond what was required, and it wasn’t truthful. For instance, if your creditor informed the credit bureaus that you are delinquent on all of your accounts when in fact you were not, then they may be liable for false reporting.

Credit Damage Lawyers

What is the difference between a credit repair and damage law firm? All credit repair companies are not created equal. You need to know how to choose the right law firm and avoid credit repair companies at all costs. Credit repair companies will tell you whatever you want to hear to get your money to “fix” your credit. You need to consult with a lawyer who has experience with the Fair Credit Reporting Act, such as Cook Law LLC.

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.

Can You Sue A Company For Putting False Information On Your Credit Report?

The answer to this question is yes. Most of the time, when you are applying for a loan or credit card, your creditor will pull your credit report to determine whether you are financially responsible enough to have that type of credit. When they check your report, they look for any negative items on it that may influence their decision of whether or not to extend the credit to you.