by Matt Cook /
December 17, 2021 /
Credit Reporting Errors

Can You Sue For Incorrect Credit Reporting?

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What Can I Do?

You absolutely have the right to raise disputes for what you believe are errors on your credit report. As soon as a dispute is raised, the credit reference agency must begin an investigation into what you have raised or remove the error. If the credit reference agency does not remove what you have claimed to be inaccurate, they still have to get in contact with you. There are times where they may communicate that the creditor who has made the error has defended their position and stands that their report is correct. If this happens, you have to take further action. You can try:

  • Getting in contact with the creditor
  • Raising a second dispute with the reference agency with extra information
  • Raise a complaint about the reference agency to a Government body
  • Raise a complaint about the creditor to a Government body
  • Lodge a complaint to the State’s consumer protection
  • Speak with your senator
  • Sue the reference agency
  • Sue the creditor

If your credit reference agency does not change your report and you’re convinced that the information on your report is incorrect, you will have to ramp up the action.

Getting In Contact With The Creditor

Finding contact details of a creditor can be tricky, especially if the creditor has been purchased by somebody else or ceases to exist. However, most details of the creditor should remain online somewhere – if not, try and ask the credit reference agency if they have any details about the financial institution. It’s best to start with a telephone call, but sometimes it’s not that simple. It’s always a good idea however, to write a letter or email – either initially or as a follow-up. The best thing about written communication is that you can provide evidence with date and time stamps to a court. Emails can often indicate if the person you have contacted has refused to respond too. You should send a copy of the letter to the credit reference agency – and if you’re sending an email, it’s a good idea to CC in the credit reference agency. This is even better for evidence, as a secondary party should be able to confirm your history of contact. If you have contacted the creditor before, they do not necessarily have to respond to the same raised dispute. However, if you provide more information or evidence to your dispute – you could get through to a more senior staff member like the CEO or COO and potentially can rectify the situation. If though, the creditor refuses to respond or help you with your dispute – you can raise this with your credit reference agency. They tend to have their own departments that deal with these disputes directly. Depending on which agency or agencies have the error reported on your credit report, you’ll have to contact all of them directly.

Raise Another Dispute With The Credit Reference Agency

Raising another dispute to the reference agency will only be worth it if you have further information to supply. If you simply file another dispute without any further evidence or information, the reference agency will likely do nothing.

Complaining About The Credit Reference Agency

You may wish to escalate your complaint – which you can do by contacting the CFPB (Consumer Financial Protection Bureau). They will either work on your behalf to get something from the reference agency or they will move your complaint on to a different Government body which is more suited to the nature of your complaint. Either way – you’re moving forward.

Complaining About The CreditorComplaining About The Creditor

If your creditor still refuses to rectify the error or does not respond to any of your correspondence, you can file a complaint with the FTC (Federal Trade Commission). You could also file a complaint with the financial institution’s regulator, if they have one. You’re better off starting with the FTC as they can assist you in your search for a resolution by guiding you to the right people to contact.

Contacting The State Consumer Protection Agency

Laws alter from State to State, so it’s always worth raising a complaint with the agency, as there might be a specific law regarding or in relation with credit reference agencies and creditors.

Speaking With The SenatorSpeaking With The Senator

Senators help to draft legislation and should know all the ins and outs about the laws and regulations. At the very least, they can help investigate or contact the relevant people on your behalf.

Adding A Statement To Your Report

It is your right to add a statement to your report. You can try and explain your situation and dispute in much further detail, but try to keep it brief and to the point. If after all this, you still have no luck with progressing your dispute, then you should try legal proceedings.

Sue The Credit Reference Agency, Creditor Or Both

The Fair Credit Reporting Act says that you have the right to sue a credit reference agency if they have made negligent or willful noncompliance of the law (within 24 months) after you notice the error, or up to five years after the harmful behavior begins. You have grounds to sue if due to their error in reporting and their negligent failure to rectify the error, you have had inaccurate information passed on to further potential lenders and have either been refused credit or charged increased interest as a result of the false information. It’s not as simple to sue a creditor as it is to sue a reference agency, due to several ways a creditor can avoid liability – which the Fair Credit Reporting Act helps them do. However, it doesn’t mean they will always win the case.

What To Know

Yes, you can sue for incorrect credit reporting but it’s worth taking less serious action first. If you have tried everything else and still can’t solve the problem, you might want to talk to an experienced lawyer who can help you.

Seeking Compensation for Damages Caused by Credit Reporting Mistakes

Credit reporting mistakes can have a significant impact on your financial life. Whether it’s an error on your credit report or inaccurate information on your credit file, these mistakes can lead to a lower credit score, which in turn can result in higher interest rates or even denial of credit.

If credit reporting mistakes caused you harm, you may be able to get money to make up for it. There are many ways to seek compensation, including bringing a lawsuit against the credit reporting agency, reporting agency, or the credit reporting agencies themselves.

To bring a successful lawsuit, you will need to prove that the credit reporting agency, reporting agency, or credit reporting agencies made an error that caused you damages. These damages can include lost credit opportunities, punitive damages, or even emotional distress.

You can also file a complaint with the Federal Trade Commission or the Consumer Financial Protection Bureau, which can investigate and potentially take action against the credit reporting agency or reporting company that caused the mistake.

Key Considerations Before Suing a Bank for Incorrect Credit Reporting

If you believe that a bank has reported incorrect information about your credit report, you may be able to sue them for damages. However, before you bring a lawsuit, there are several key considerations to keep in mind.

First, it’s important to understand the role of credit reporting agencies in the process. Credit reporting agencies are in charge of keeping track of your credit history and using that information to figure out your credit score. Banks and other creditors report your credit information to these agencies, who then include it in your credit report. If there’s an error on your credit report, it’s important to determine which agency is responsible for the mistake.

Next, you’ll want to carefully look over your credit report to make sure the information is correct. You can request a free copy of your credit report from each of the three major credit reporting agencies once a year. If you find an error, you should dispute it with both the credit reporting agency and the bank that gave the wrong information. The Fair Credit Reporting Act (FCRA) tells you how to handle mistakes on your credit report.

If the mistake isn’t fixed after you tell the bank about it, you may want to sue the bank. However, before you do so, you should consult with a consumer protection attorney to assess your case. There are many ways that mistakes can happen with credit reports, and the laws that cover these situations can be hard to understand. Your lawyer can help you understand how the legal process works, what kinds of damages you might be able to get, and how much it might cost to go to court.