FAIR CREDIT REPORTING ACT
about the fcra
Originally passed by Congress in 1970, the Fair Credit Reporting Act ("FCRA") was enacted to promote accuracy, fairness, and privacy of consumer information published by consumer reporting agencies. A key purpose of the FCRA is to ensure that false negative information is not published on a consumer's credit report. The statute provides procedures that allow consumers to notify credit reporting agencies of inaccurately published information and there are strict penalties if the reporting agency does not investigate and correct the problem.
Accuracy in a consumer credit report is extremely important. Credit reports are used to determine a consumer's credit score, a key factor in determining whether a person is eligible to obtain financing and the interest rate of financing. Credit reports are also used in some employment and housing background checks. In 2015 the Federal Trade Commission found that nearly 25% of all consumers have inaccurate information on their credit report. Many consumers do not realize they have inaccurate information on their credit report and end up being denied financing, paying a higher interest rate, being denied an apartment or being denied a job as a result.
damages for the consumer
Consumers who's rights are violated under the FCRA can recover actual damages, punitive damages, costs of litigation and attorney fees. The FCRA is unique from other federal consumer protection statutes in that it enables consumers to recover punitive damages. Because the FCRA has a provision that requires the wrongful party to pay the attorney fees and court costs for the consumer, quality legal representation can be affordable.
examples of violations
The following are examples of common credit reporting errors that consumers encounter.
- Loans reported as delinquent when all payments have been made.
- Information about another person appearing on the consumer's credit report. Mistaken identity is common and often occurs for people with popular names and/or generational names such as a Jr.
- Failing to report that a debt was discharged in bankruptcy.
- Reporting old debts as new or "re-aged."
- Reporting civil judgments more than 10 years after they were entered.
- Reporting an account as active when it was closed by the consumer.
- Reporting information relating to a bankruptcy more than seven years after discharge.
- Misstating the loan balance due.
- Listing a consumer as a debtor on an account where they are only an authorized user but not obligor.
what can northeast law group do for you?
Since 2012 Adam Deutsch has represented consumers in lawsuits against credit reporting agencies and financial companies reporting inaccurate information. Northeast Law Group has the expertise to handle these complex cases to ensure that false information on a credit report is removed and/or corrected and to obtain damages to compensate for injuries. Choosing the right attorney is important because the FCRA has many nuanced components that require a high degree of detail and knowledge. The approach taken by Northeast Law Group seeks to maximize the client's likelihood of obtaining the highest financial award possible including punitive damages. If you or someone you know is the victim of false information being reported on their credit report, contact Northeast Law Group for more information. Our representation is affordable and effective, putting the consumer first.