Credit Report Errors and FCRA Violations: What You Need to Know

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The federal Fair Credit Reporting Act (FCRA) is one of the strongest consumer protection laws. The FCRA is designed to ensure the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. Unfortunately, credit reporting errors and violations of the FCRA are common. We have been helping consumers fight against credit reporting agencies and damaging mistakes for over 26 years.

Credit reporting errors can have serious consequences for consumers, leading to loan denials, higher interest rates, and even lost job opportunities. The Fair Credit Reporting Act (FCRA) is designed to protect you from these issues, but violations still occur frequently. Below, we discuss some of the most common FCRA violations related to credit reports and what you can do to protect your rights.

Common FCRA Violations Related to Credit Reporting:

1. Inaccurate Information: The most common FCRA violation involves reporting outdated or incorrect information on your credit report. Whether it’s an incorrect account status, wrong balance, or information from someone else’s credit file, credit reporting agencies (CRAs) must ensure the accuracy and completeness of your report.
2. Failure to Investigate Disputes: When consumers dispute inaccuracies on their credit reports, CRAs and information furnishers are legally required to investigate within 30 days. Failure to properly investigate or correct the errors constitutes a violation of the FCRA.
3. Improper Disclosure of Credit Information: Your credit report can only be accessed for specific purposes, such as credit approval, insurance, or employment screening. If an entity accesses your credit report without proper authorization, it is a violation of your rights under the FCRA.
4. Improper Handling of Opt-Out Requests: You have the right to opt out of unsolicited credit and insurance offers. CRAs must provide a simple process for this, and failure to handle these requests properly can lead to FCRA violations.
5. Failure to Provide Required Disclosures: Consumers are entitled to one free credit report per year and must be informed of their rights under the FCRA. If a CRA fails to provide these disclosures or makes it difficult for you to access them, they are in violation of the law.

If any of these violations have affected you, it’s essential to take action. Contact an FCRA attorney for a free, no-obligation case evaluation by filling out our online form or calling 1-877-735-8600.

Credit reporting agencies (CRAs) collect and maintain your credit information. The three largest CRAs in the U.S. are Experian, Equifax, and TransUnion. These agencies provide credit reports to companies when they perform credit checks, such as for loan approvals, credit card applications, employment screenings, and rental applications.

When incorrect information appears on your credit report, you have the legal right to dispute it and seek correction under the FCRA.

The Fair Credit Reporting Act (FCRA) provides several protections for consumers dealing with credit report errors:

1. 1. Right to Dispute Errors: You can dispute any mistakes on your credit report. The CRA is required to investigate and correct inaccuracies within 30 days.
   2. Mandatory Removal of Inaccurate Information: If a CRA cannot verify the accuracy of the information in your report, they must remove it.
   3. Limits on Reporting Negative Information: Negative credit information can only remain on your report for a set period—usually seven years. Bankruptcy is the exception and can be reported for up to ten years.
   4. Right to Sue for Damages: If a CRA violates your rights under the FCRA, you have the right to file a lawsuit and seek damages, including compensation for emotional distress, lost wages, and more.

For more, view Summary of Your Rights Under The Fair Credit Reporting Act (FCRA)

After receiving your dispute, the CRA forwards it to the information furnisher (such as a bank or creditor) for investigation. They must complete the investigation and report any corrections to the CRA within 30 days.

Unfortunately, CRAs often fail to thoroughly investigate disputes, resulting in unresolved errors. In these cases, multiple attempts may be necessary, but there is no guarantee the issue will be fixed.

The timeline for correcting credit report errors can vary, especially if legal action becomes necessary. In a video, our partner, John Soumilas, explains how long it typically takes to resolve these issues after filing a lawsuit against a CRA or background check company.

If you’ve tried to resolve errors on your credit report without success, or if the credit reporting agency continues to ignore your disputes, it’s time to consult with an FCRA attorney. At Francis Mailman Soumilas, P.C., we specialize in holding CRAs accountable for FCRA violations and helping consumers like you fix their credit reports and seek compensation for damages.

Don’t let credit report errors ruin your financial future. Contact us today for a free consultation.

Fill out our online case review form or call us at 1-877-735-8600 to discuss your case with an experienced credit report attorney.