What Debt Collectors Can and Can’t Do

If you're hearing from a debt collector, you're probably stressed, confused, or even scared. But the law gives you important protections and knowing your rights is the first step toward taking back control. Simply put, knowledge=power.

The Fair Debt Collection Practices Act (FDCPA) protects you from harassment, deception, and unfair tactics by debt collectors. This federal law applies even if you legitimately owe the debt.

Here’s what you need to know.

What Is the FDCPA and When Does It Apply?

The FDCPA is a federal law that governs how third-party debt collectors can interact with consumers. It’s been on the books since 1977 and is enforced by the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB).

Here’s what that means for you:

  • It applies only to third-party collectors. These are companies hired by the original creditor (like a credit card company, hospital, or utility provider) to collect a debt. It doesn't cover original creditors collecting their own debts.

    • ➡️ Example: Say you have a credit card through Affinity Plus Credit Union. If Affinity Plus calls you or sends you a letter, the FDCPA doesn’t apply because they’re the original creditor collecting their own debt. However, let’s say Affinity Plus transfers your debt to Messerli & Kramer, a debt collection law firm. Messerli must comply with the FDCPA because they are a third party collecting a debt for someone else.

    • ➡️ Tip: Some states, including Wisconsin, have state debt collection laws that do apply to original creditors.

  • It only covers personal, family, or household debts. That includes credit cards, loans, medical bills, car loans, mortgages, student loans, etc. It doesn’t cover business debts.

  • You’re still protected even if you owe the money. The FDCPA isn’t just for people being wrongly pursued. Even if the debt is legit, collectors still have to treat you fairly and follow the law.

What Debt Collectors Can Do

Debt collectors do have legal ways to try to collect money. These include:

  • Contact You About a Debt. Collectors can call, write, or email to ask for payment.

  • Report to Credit Bureaus. Debt collectors can report unpaid debts to credit reporting agencies, but the information must be accurate.

  • Sue You in Court. They can start a lawsuit to collect a debt, as long as it's within the statute of limitations.

  • Garnish Your Bank Account or Wages (If They Have a Judgment)
    If a debt collector sues you and wins in court, they can garnish your wages or bank account. That means money could be taken directly from your paycheck or checking account to satisfy the debt.

    • ➡️ Important: They cannot garnish anything unless they first get a court judgment against you. If a collector is threatening garnishment without a judgment, that may be illegal.

What Debt Collectors Can’t Do

The FDCPA bans false, misleading, harassing, abusive, and unfair collection practices such as:

  • Harass or Threaten You. A debt collector can't yell, curse, threaten violence, or repeatedly call to annoy you.

  • Call at Inappropriate Times. They can’t contact you before 8 AM or after 9 PM in your time zone.

  • Lie or Mislead You. The collector can’t pretend to be a lawyer or government agent, lie about the amount you owe, or say you’ll be arrested if you don’t pay.

  • Talk About Your Debt with Others. A debt collector can’t tell your friends, boss, neighbors, or relatives about your debt (other than your spouse or attorney).

  • Keep Contacting You After You Tell Them to Stop. If you send a letter telling them to stop contacting you, they must stop—except to confirm they won’t contact you again or to notify you of legal action.

  • Add Unauthorized Fees. Collectors can’t tack on extra interest, fees, or charges unless your contract or state law allows it.

What to Do Next

If you're dealing with a debt collector right now, here are three practical steps to take:

  • Write Everything Down. Keep a record of all phone calls, voicemails, letters, emails, and texts. Keep screenshots of all inbound and outbound calls and texts and keep all voicemails, letters, emails, and court papers.

  • Don’t Assume They’re Right. Just because a debt collector says you owe money doesn’t make it true. Don’t agree to pay until you understand who’s collecting and what the debt is.

  • Talk to a Consumer Protection Lawyer. If you're being harassed or threatened, or just unsure what your rights are, a quick consultation can help you figure out your options. Most consumer lawyers offer free initial consults.

Serving Minnesota and Western Wisconsin

Think a debt collector has stepped over the line? Book a free consult with FDCPA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin sue debt collectors who break the law. He’s recovered millions of dollars for clients and held collectors liable for illegal conduct. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

Disputing Credit Report Errors: What Works, What Doesn’t, and When to Get Help

Finding an error on your credit report can be frustrating, even frightening, especially if it’s affecting your ability to get a loan, rent an apartment, or apply for a job. But you’re not alone, and you have rights under federal law. This step-by-step guide will show you exactly how to dispute the error, protect your credit, and start fixing the problem.

Step 1: Write a Letter to the Credit Reporting Agency

Your first step is to prepare a dispute letter and send it to the credit reporting agency. The most common CRAs are Experian, Equifax, and TransUnion.

It’s critical that your dispute go directly to the CRA, not just the creditor or company that furnished the information. Under the Fair Credit Reporting Act, you have no meaningful legal rights until a dispute is made to the credit reporting agency itself.

⚠️ Why Not Use the CRA’s Website?

Although all the CRAs offer online dispute forms, we strongly recommend mailing a letter instead. Here’s why:

  • Online portals may require you to waive some of your legal rights, including your right to sue in court if the CRA doesn’t follow the law.

  • You can’t attach detailed documentation as easily.

  • A letter creates a strong paper trail, which is critical if the CRA doesn’t fix the error.

📋 Credit Report Dispute Letter Checklist

Before you send your letter, make sure it includes:

✅ Your full name, address, and Social Security number
✅ A list of the inaccurate items (circle them on a copy of your credit report)
✅ A detailed explanation of what’s wrong with each item
✅ Copies of documents that support your position
✅ Information about any previous disputes, including phone calls
✅ A clear statement of what you want them to do (e.g., delete, correct)

✍️ Tip: Avoid internet templates or generic sample letters — many are shallow or misleading. The best letter uses your own words.

Step 2: Mail the Letter Certified and Keep a Copy of the Letter for Your Records

Mail your letter using certified mail with return receipt and keep a full copy of your letter and proof of delivery. This documentation is vital in case the CRA ignores your dispute or fails to fix the mistake.

Step 3: Review the CRA’s Response to Your Dispute

Within about 30 days, the CRA will send you a response and an updated credit report. This response will tell you whether the disputed item was corrected or deleted.

Compare this new report to your old one. If the mistake is fixed, great! If not, save the response and continue to Step 4.

📄 Tip: The CRA must conduct a real investigation — it can’t just rubber-stamp whatever the furnisher says. If it fails to investigate properly, it may have violated your rights under federal law.

Step 4: Talk to an Attorney if Your Dispute Didn’t Fix the Mistake

If your dispute letter was clear and well-documented but the CRA still refuses to fix the mistake, don’t give up.

At this point, you should talk to a consumer protection attorney with experience handling FCRA claims. A lawyer can:

  • Review your dispute and CRA response;

  • Advise you on if you should dispute a second time;

  • Force the CRA to act or face legal consequences

  • Help you seek damages for harm to your credit

Most FCRA attorneys offer free consultations and, if your legal rights were violated, the law may require the CRA to pay your legal fees. If you live in Minnesota or Western Wisconsin, feel free to contact us.

FREE CREDIT REPORT ERROR RESOURCES

How Much Money Can You Get from a Successful FCRA Lawsuit?

If your credit report contains false information, and the credit reporting agencies or furnishers fail to fix it after you dispute it, you may have the right to sue under the Fair Credit Reporting Act (FCRA). One of the first questions people ask is: How much money can I actually recover if I win?

The answer depends on how the law was violated, and how badly you were harmed.

Here’s a breakdown of what’s possible in an FCRA case.

Statutory Damages: Up to $1,000

If the credit reporting agency (or the company that reported the information) willfully violated the law, you can recover statutory damages even if you can’t prove you lost any money. These range from $100 to $1,000 per violation.

A willful violation occurs when a company knowingly or recklessly ignores its responsibilities under the FCRA.

Actual Damages: No Set Limit

If you’ve suffered harm, financially or emotionally, as a result of credit reporting errors, the law allows you to recover those actual damages. This could include:

  • Higher interest rates or loan denials

  • Loss of housing or job opportunities

  • Emotional distress — especially in cases of repeated or egregious errors

  • Out-of-pocket expenses from trying to fix the mistake

There is no cap on how much you can recover in actual damages, but you’ll need proof to back up your claim. In some cases, actual damages have reached tens or even hundreds of thousands of dollars, especially when the error caused serious and lasting consequences.

Punitive Damages: For Serious Violations

In willful violation cases, courts may also award punitive damages. Punitive damages is money awarded to punish the credit bureau or furnisher and deter future misconduct.

Punitive damages are not appropriate in every case and the burden of proof is high. But when they are awarded, the amounts can be significant. For example, some courts have upheld six and seven-figure punitive awards where the conduct was particularly egregious.

Attorneys’ Fees and Costs: Paid by the Other Side if You Win

One of the most important protections the FCRA gives consumers is this: If you win your case, the credit bureau or furnisher has to pay your legal fees and court costs. This important protection allows people of ordinary means to hire good lawyers and pursue these cases without going broke because most FCRA lawyers take these cases on contingent fees with no up front costs.

Example: How FCRA Damages Add Up

Let’s say your credit report wrongly shows a repossessed car loan that was never yours. You dispute it three times, but the credit bureau never fixes it. As a result, you have to settle for a more expensive rental and spend months stressing over your finances.

A successful lawsuit could potentially recover:

  • $1,000 in statutory damages if the defendant acted willfully

  • $10,000 in higher housing costs

  • $15,000 in emotional distress

  • Attorney’s fees (covered by the other side)

That’s $26,000+, without even accounting for potential punitive damages.

Bottom Line: You Have Rights. And Options

The credit reporting agencies and furnishers don’t always take consumer disputes seriously. But when they violate the law, you can fight back — and recover money for the harm they’ve caused.

If you've disputed a credit report error and the mistake still hasn’t been fixed, you may have a strong FCRA claim. Talking to an experienced consumer protection attorney can help you understand your rights and what your case might be worth. If you live in Minnesota or Western Wisconsin, feel free to contact us.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

What to Do When a Credit Reporting Agency Won’t Fix an Error

You found an error on your credit report and sent a dispute letter to the Credit Reporting Agency. You even included documents to back up your case. But about month later, you got a response from the credit bureau saying the account is “verified” or “accurate.”

Now what?

Unfortunately, this is a common, and incredibly frustrating, experience. But you’re not out of options. Here’s what you can do if a credit reporting agency refuses to correct a credit report error after your first dispute.

Step 1: Review the Response Carefully

Your first step is to clearly understand the results of the investigation. Did they keep the mistake on your report? Or did they fix it? This isn’t always obvious and it may help to compare the updated report you got as part of the investigation results with your old report from before you disputed.

It’s also important to know if they actually investigated your dispute. Although CRAs are generally required to investigate disputes, there are some exceptions. For example, if you failed to provide enough information with your dispute, the CRA may not have been able to conduct an investigation.

Step 2: Consider Disputing Again and Include More Information

Take another look at your initial dispute letter. Did you clearly identify the account that is wrong? Did you explain the mistake in enough detail? Did you send documents that show the error? If not, consider sending a second dispute letter with a clearer explanation or stronger supporting documentation.

Don’t just send the same dispute letter a second time. CRAs can properly refuse to investigate a dispute if it’s substantially the same as a previous dispute, or if it provides no new information.

Step 3: Dispute with the Furnisher (the Company That Reported the Error)

You can also send a written dispute directly to the company that reported the inaccurate information. They are called the “furnisher” and include banks, lenders, credit card companies, and debt collectors. Include a clear explanation of the error and all supporting documentation.

Important: only do this if you’ve already disputed to the Credit Bureaus (Experian, Equifax, TransUnion, etc) and they’ve failed to fix the error. Direct disputes to furnishers are typically not governed by the Fair Credit Reporting Act and you don’t have any meaningful recourse if the furnisher ignores your dispute.

Step 4: File a Complaint with the CFPB or State Attorney General

If you’re getting nowhere, consider filing a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB will forward your complaint to the credit bureau or furnisher and require a response. This process sometimes leads to faster resolutions.

You should also file a complaint with your state regulator. Minnesota residents should file a complaint with the Minnesota Attorney General and Wisconsin residents should complain to the Wisconsin Department of Agriculture, Trade, and Consumer Protection.

Step 5: Talk to a Consumer Protection Lawyer

If you’ve completed Steps 1-4 here, and the mistake has still not been fixed, it may be time to talk to an attorney who handles credit reporting cases.

A lawyer can help you determine your next steps and whether you may have a legal claim under the Fair Credit Reporting Act. Many lawyers who handle credit reporting error cases provide a free consult and do not charge up front fees for representation. If you live in Minnesota or Western Wisconsin, feel free to contact us.

Final Thoughts

It’s incredibly frustrating when you do everything right and the system still fails you. But remember: You have rights. Credit bureaus and furnishers don’t get the final say when they don’t follow the law.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

How Long Do Credit Bureaus Have to Investigate a Credit Report Dispute?

If you’ve found a mistake on your credit report and sent a dispute to the credit bureau, you’re probably wondering how long it will take to get a response. The good news is that the Fair Credit Reporting Act sets strict deadlines for the credit bureaus to complete their investigation.

Once the credit bureau receives your dispute, it generally has 30 days to investigate and respond. That clock starts ticking the day they get your dispute. If you submit more information after the initial filing, they may get an extra 15 days, but only if the new information is relevant to the investigation.

During that time, the credit bureau must contact the company that provided the disputed information (called the "furnisher") and pass along the details of your dispute. The furnisher must then investigate and report back.

When the investigation is complete, the credit bureau must send you the results in writing. This will typically include a free copy of your updated credit report.

Bottom line: You should expect a response within 30 to 45 days of filing your dispute. If the bureau doesn’t respond or fails to fix a clear error, you may have legal options. It’s probably worth contacting a lawyer who handles FCRA cases. If you live in Minnesota or Western Wisconsin, feel free to contact us.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

5 Mistakes to Avoid When Disputing a Credit Report Error

Many people unknowingly sabotage their credit report disputes by making preventable errors. In this post, we’ll walk through the five most common mistakes people make when disputing credit report errors and how you can avoid them.

Mistake 1: Disputing the Error Online

Yes, it’s fast and easy to file a dispute through the credit bureaus’ online portals. But here’s the catch: online disputes often limit what you can say, don’t let you submit full supporting documentation, and may waive important rights under federal law.

What to do instead: Write a physical letter and mail it (with proof of delivery) to the credit reporting agencies. This gives you control over the content of your dispute and creates a better paper trail in case you need to escalate later.

Mistake 2: Not Sending the Dispute to the CRA

A common misconception is that you need to contact the creditor or lender (also known as the “furnisher”) who reported the wrong info. While it’s okay to let them know, your legal rights kick in only when you send the dispute to the Credit Reporting Agency. The three most common CRAs are Experian, Equifax, and TransUnion.

Why it matters: Under the Fair Credit Reporting Act, the credit bureaus are legally required to investigate when you send them a dispute, not when you contact the creditor directly.

Mistake 3: Leaving Out Key Details

You don’t need to write a novel, but your dispute letter should clearly identify the mistake and provide enough information for someone unfamiliar with your situation to understand the problem.

What to include:

  • Your full name, address, and date of birth

  • A copy of your ID (to prove your identity)

  • A copy of your credit report with the error highlighted

  • A short but clear explanation of what’s wrong and why it’s wrong

  • Any supporting documents (bank statements, letters, receipts, court records, etc.)

Mistake 4: Not Saying What You Want

Don’t assume the credit bureau will know how to fix the error. Be direct and tell them what you want them to do. Whether it’s deleting an account, updating a payment status, or correcting a balance, it’s important to be specific.

Sample sentence:
“I am requesting that you delete this account from my credit report because it does not belong to me.”

Being clear about your request improves your chances of getting the outcome you want.

Mistake 5: Not Keeping Records

You’d be surprised how many people send off a dispute and then don’t keep a copy. That’s risky, especially if you need to follow up or take legal action later.

What to keep:

  • A copy of your dispute letter

  • All supporting documents included with your letter

  • Return receipts or tracking information

  • Any response letters from the credit bureaus

You’re building a paper trail that could be critical down the road if the error isn’t fixed properly.

Final Thoughts: Get it Right the First Time

Disputing a credit report error can feel intimidating, but it doesn’t have to be. By avoiding these five common mistakes, you give yourself the best shot at a successful outcome.

And remember, if the credit bureaus or creditors don’t fix the problem after you’ve properly disputed it, you may have legal options. Consider talking to a consumer rights lawyer who handles Fair Credit Reporting Act cases to learn more. If you live in Minnesota or Western Wisconsin, feel free to contact us.

FREE CREDIT REPORT ERROR RESOURCES

How to Recover from Identity Theft and Repair Your Credit Report

Identity theft can feel overwhelming, violating, and deeply unfair. It happens when someone uses your personal information, like your name, Social Security number, or account details, to open new accounts or rack up charges in your name.

If this has happened to you, you're not alone. According to the Bureau of Justice Statistics, 17.6 million Americans were victims of identity theft in just one year. But there are concrete steps you can take to stop the fraud, clean up your credit, and reclaim your peace of mind. Here's how to recognize the signs and what to do if you've become a victim.

How to Spot Identity Theft

The sooner you catch identity theft, the easier it is to limit the damage. Here’s what to watch for:

Check your credit reports regularly
Under the Fair Credit Reporting Act (FCRA), you’re entitled to one free report per year from each of the three major credit bureaus (Equifax, Experian, and TransUnion). Get yours at AnnualCreditReport.com, the only official source.

Tip: Stagger your requests (one bureau every four months) to keep tabs on your credit year-round for free.

Look for red flags:

  • Accounts you didn’t open

  • Credit inquiries from companies you never applied to

  • Incorrect personal information (like unfamiliar addresses or Social Security number digits)

  • Balances that seem too high on your current accounts

Monitor your bills and mail:
Don’t ignore strange bills, collection notices, or calls about debts you don’t recognize. These are often the first signs someone has stolen your identity.

8 Steps for Recovering From Identity Theft

Step 1: Contact the companies where fraud occurred

Call each creditor’s fraud department. Ask them to close or freeze the account immediately. Document every call: date, time, the name of the person you spoke to, and what was said.

STEP 2: Place a fraud alert on your credit reports

A fraud alert is free and lasts for 90 days (you can renew it). It signals to lenders that they must verify your identity before opening new accounts. You only need to contact one bureau — they’ll notify the others.

  • Extended fraud alert: If you’ve filed a police report or an Identity Theft Report, you can request an extended alert that lasts seven years.

  • Credit freeze: Consider freezing your credit, which blocks access to your reports entirely. In Minnesota, identity theft victims can do this for free.

STEP 3: File a report with the FTC

Visit IdentityTheft.gov to file a report and create a personalized recovery plan. Print and save the report — it’s called an Identity Theft Report and is a critical part of the recovery process.

STEP 4: Consider filing a police report

Some creditors or bureaus may require one. When you go to the police department to file the report, make sure to bring the following documents:

  • A copy of your FTC report

  • Your government-issued ID

  • Proof of your address

  • Any evidence of the theft

Ask for a copy of the police report and keep it in your records.

STEP 5: Close Fraudulent Accounts and Reverse Unauthorized Charges

List every fake account and any unauthorized charges on your real accounts. Then:

  • Contact the creditor’s fraud department

  • Send your FTC report and police report

  • Request written confirmation that accounts were closed and you won’t be held responsible

Keep all letters and responses.

STEP 6: Dispute Fraudulent Items with the Credit Bureaus

Write a dispute letter to Equifax, Experian, and TransUnion. Include:

  • A copy of your credit report with fraud items circled

  • Your FTC Identity Theft Report (and police report, if available)

  • A clear request to block the fraudulent items from your report

You can find sample letters at IdentityTheft.gov. Save all correspondence.

STEP 7: Notify Any Debt Collectors Involved

If you're being contacted about debts you didn’t create, don’t ignore it.

  • Send a written letter explaining the identity theft

  • Include your FTC and police reports, plus any letters from creditors clearing you

  • Request they stop contacting you and remove the debt

Keep a log of collection calls and save all letters.

STEP 8: Get Legal Help if Disputes Aren’t Resolved

If the credit bureaus refuse to remove fraudulent accounts, or if collectors keep harassing you, don’t fight alone. Consumer protection laws like the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) give you powerful rights.

A consumer protection who handles identity theft cases can:

  • Force credit bureaus and creditors to correct your report

  • Stop illegal collection activity

  • Help you sue if your rights were violated

In many cases, these laws allow you to recover damages — and make the wrongdoers pay your attorney’s fees.

Final Thoughts

Recovering from identity theft takes time, patience, and documentation, but you can take control. The steps above aren’t just helpful; they’re your legal rights. Keep records, follow up persistently, and don’t hesitate to ask for help when you need it.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

Your Rights Under the FCRA: How to Sue When a Credit Bureau Breaks the Rules

You found a serious error on your credit report. Maybe it’s a loan you never took out, or a delinquency that’s just plain wrong, or even someone else’s account showing up under your name. You did everything right: you filed a dispute with the credit bureau, explained the problem, and waited.

But they didn’t fix it.

If that sounds familiar, you’re not alone, and you may have a legal claim under the Fair Credit Reporting Act (FCRA).

What Is the FCRA and How Does it Protect Me?

The FCRA is a federal law that regulates how credit reporting agencies like Experian, Equifax, and TransUnion handle your credit information. It also applies to the companies (like banks, lenders, or debt collectors) that supply the data. These companies are called “furnishers” under the FCRA because they provided, or furnish, credit information to the credit bureaus.

Probably the most important consumer protection under the FCRA is the process to investigate and remove inaccurate information. Here, the FCRA requires credit reporting agencies and furnishers to investigate credit report errors after you notify them there’s a problem. These investigations must be reasonably detailed and thorough and include a review of all relevant information.

The FCRA Is on Your Side — If You’ve Taken the Right First Step

The Fair Credit Reporting Act gives you real legal tools, but only after you take a crucial first step: filing a written dispute with the credit bureau.

Once you do that, the law is clear. The credit bureau must:

  • Conduct a reasonable investigation into the error,

  • Correct or delete inaccurate information if the dispute is valid,

  • And respond within 30 days of receiving your dispute.

But here’s the problem: many credit bureaus rely on automated systems that do little more than match dispute codes to canned responses. If they don’t actually investigate or if they blow you off entirely, that’s not just unfair. It’s illegal.

Depending on how serious their violation is, here’s what you may be entitled to:

  • Willful violations: Up to $1,000 in statutory damages, plus any actual damages (like lost credit opportunities, higher interest rates, or emotional distress).

  • Negligent violations: You can still recover actual damages — if you can prove the harm you suffered.

Even better? If you win your case, the law requires the credit bureau to pay your attorney fees and costs. This means that most FCRA lawyers will handle your case without any up-front attorney fees.

So if you've disputed the mistake and nothing changed, the law is now in your corner and it's time to fight back.

What to Do Next

If you've already disputed an error on your credit report and the credit bureau still hasn’t fixed it, you may have a valid FCRA claim. That means you could be entitled to financial compensation, correction of the error, and the credit bureau could be forced to pay your attorney fees.

Here's how a FCRA lawyer can help you now:

  • Review your documents — your dispute letter, the bureau’s response, and your credit report.

  • Evaluate your legal options — whether the bureau broke the law, and if a lawsuit is the right next move.

  • Handle the case from start to finish — no up-front costs, no guessing, and no fighting alone.

You did your part. You followed the rules. Now it’s time to make them follow the law.

Contact an experienced FCRA lawyer today to finally fix the damage they’ve caused. If you live in Minnesota or Western Wisconsin, feel free to contact us.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

How to Get Your Free Credit Report and Understand It

Let’s say you just found out that there is a mistake on your credit report. Maybe a lender turned down your loan application because of a delinquency that you know isn’t right. Or maybe a landlord denied your rental application because of a late payment that you know was actually on-time. Or maybe an account that isn’t yours popped up on your credit monitoring service. Either way, your next step is to get a full copy of your credit report to figure out what caused the mistake and start the process of fixing it.

How to Get Your Credit Report for Free

You’re entitled to one free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, and Trans Union) every 12 months. Use the website AnnualCreditReport.com to get your free copy. This is the only website to get your free report. Beware of imposter websites.

You can also order your free report over the phone by calling (877) 322-8228 or by mail by filling out this form and mailing it to Annual Credit Report Request Service; P.O. Box 105281, Atlanta, GA 30348.

You can order all three reports at once, or you can stagger the reports every couple of months so that you can monitor your credit reports throughout the year. Consider using this staggering technique before you pay for a credit monitoring product.

Your credit report won't contain your credit score, but there are a couple of easy ways to get it. First, many credit cards provide your credit score on each billing statement. If you have credit cards, check your billing statements to see if your score is provided. Another way to get it is to buy it from one of the credit bureaus. You can also buy your credit score at any time from MyFICO.com. Keep in mind that your credit score may be different depending on who you buy it from.

How to Know What You’re Looking At On Your Credit Report

A credit report is not the same as a credit score. It’s a detailed history of your credit activity, and it’s what lenders use to decide whether they trust you to repay a loan or credit line. Your credit report includes:

  • Personal Information. Your name, addresses, Social Security number (last 4 digits), date of birth, and employment history.

  • Account Information. All your open and closed credit accounts, including credit cards, mortgages, auto loans, and student loans. It shows balances, payment history, and whether you’ve been on time.

  • Public Records. Bankruptcies and possibly tax liens or judgments (though these are less common now).

  • Credit Inquiries. A list of companies that have recently checked your credit, either because you applied for something or through a soft pull (like when you check your own credit).

How to Read Your Credit Report Without Getting Lost

Credit reports can feel a bit technical, but here’s how to break it down:

Check for accuracy:

  • Is your name spelled correctly?

  • Are all listed addresses places you’ve actually lived?

  • Do all accounts belong to you?

  • Are the balances and payment histories accurate?

  • Are any accounts marked “late” when you know you paid on time?

  • If you’ve filed bankruptcy in the past, are there any accounts that were wiped out that still show a balance due?

Watch for red flags:

  • Accounts you don’t recognize (could be fraud or a mixed file)

  • Duplicate listings of the same debt

  • Collections or charge-offs that don’t belong to you

  • Very old debts that should’ve dropped off your report

  • Addresses that you never lived at (could indicate fraud or a mixed file)

What to Do If You Find an Error

If you notice anything wrong, even something small, don’t ignore it.
Errors can hurt your credit score and lead to higher interest rates, loan denials, or lost housing and job opportunities.

Start by:

  • Gathering proof (statements, letters, screenshots)

  • Sending a written dispute to the credit bureaus.

  • Keeping copies of everything you send

You can file disputes online, but mailing a written dispute gives you more legal protection.

Final Thoughts

Getting and reading your credit report might seem intimidating at first, but it’s one of the easiest and most important steps you can take to protect your financial future.

You have a right to a clear and accurate report, and understanding what’s on it puts you in control.

FREE CREDIT REPORT ERROR RESOURCES


Denied Credit Because of a Credit Report Error? Here’s What to Do.

Finding out your loan or credit application was denied can be frustrating. But it’s even worse when the reason is a mistake on your credit report.

Maybe the report shows a loan you never took out. Maybe it lists a missed payment you know you made. Whatever the error, you have rights—and you don’t have to let the mistake stand.

Step 1: Read the Adverse Action Notice

If your application is denied, or if the lender offers you worse terms than expected, they are required by federal law to send you an adverse action notice. This notice will tell you:

  • The name, address, and phone number of the credit reporting agency (Equifax, Experian, or TransUnion) that supplied your credit report;

  • The credit score used in the decision and the key factors affecting it;

  • Your right to get a free copy of that credit report; and

  • How to dispute inaccurate information.

Step 2: Get the Credit Report Used in the Decision

Use the instructions in the notice to request your report directly from the credit reporting agency. You’re entitled to a free copy.

Step 3: Look for the Error

Carefully review the report to find what the lender saw. Common credit reporting mistakes include:

  • Accounts that don’t belong to you

  • Payments wrongly listed as late or unpaid

  • Outdated information that should’ve been removed

  • Mixed-up data from someone with a similar name or Social Security number

Step 4: Dispute the Error with the Credit Reporting Agency

To protect your rights under the Fair Credit Reporting Act (FCRA), you must send your dispute directly to the credit reporting agency (not just the creditor like Royal Credit Union or Bremer Bank).

We strongly recommend writing a dispute letter and sending it by mail, rather than using the online form. Include:

  • A clear explanation of what’s wrong

  • A copy of your credit report with the error highlighted

  • Any documents that support your claim (payment receipts, identity theft reports, etc.)

Step 5: Take Action If the Error Isn’t Fixed

If the credit reporting agency or creditor doesn’t correct the error—or performs a sloppy, automated investigation—you may need to take further steps.

  • You can send a second, more detailed dispute

  • Or you can talk to a lawyer who handles credit reporting cases

Don’t Let a Credit Report Mistake Cost You

We’ve seen our Minnesota and Wisconsin clients denied mortgages, car loans, and even jobs because of false information on their credit reports. If this is happening to you, don’t wait. You have rights—you just have to use them.

FREE CREDIT REPORT ERROR RESOURCES

What Is a “Mixed File” on My Credit Report and What Can I Do About It?

If your credit report suddenly shows debts you don’t recognize, accounts you never opened, or names that aren’t quite yours, you might be dealing with a mixed file.

Mixed files are one of the most serious, and frustrating, types of credit report errors. According to the Federal Trade Commission, nearly half of all consumer complaints about credit reports involve this very issue. It can feel like identity theft, except no one stole your identity. Instead, the credit bureau just mixed your credit report up with someone else’s.

Let’s walk through what a mixed file is, how it happens, how it can affect you, and, most importantly, what you can do to fix it.

What Is a Mixed File?

A mixed file happens when a credit bureau combines the information of two or more people into a single credit report.

That means someone else’s credit history, good and bad, gets added to your report. Often, it’s someone with a similar name, address, or Social Security number.

How Does It Happen?

Mixed files are usually caused by the credit reporting agencies themselves.

These companies, Equifax, Experian, and TransUnion, receive data from thousands of sources: banks, lenders, collection agencies, and public records. They match that data to your file using identifiers like:

  • Name

  • Social Security number

  • Date of birth

  • Current and past addresses

But their matching process doesn’t require an exact match and they won’t reveal their criteria. As a result, sometimes one person’s file gets mixed up with another’s. This usually happens for one or more of these reasons:

  • Similar names (e.g., Jon Smith vs. Jonathan Smith)

  • Generational name sharing (Sr./Jr./III)

  • Similar or transposed Social Security numbers

  • Shared addresses (like roommates or relatives)

In some cases, the error starts with a creditor who incorrectly reports your name on someone else’s account. But often, it’s the credit bureau’s matching system that allows the error to make it into your report.

Why Mixed Files Are So Dangerous

This isn’t just a minor clerical error. A mixed file can have major consequences for your life and finances.

It Can Devastate Your Credit Score

If the other person’s accounts are maxed out, delinquent, or in collections, your score can plummet overnight, even though the debts aren’t yours.

You Might Get Collection Calls or Letters

Debt collectors may start contacting you about debts you never incurred. It’s stressful and confusing, and hard to convince them it’s not your responsibility.

It’s Hard to Prove a Negative

One of the most frustrating aspects of a mixed file is how hard it can be to prove that an account doesn’t belong to you. You may have to provide:

  • Copies of your ID and Social Security card

  • Proof of your address history

  • Sworn affidavits or birth certificates

Even then, the bureaus don’t always fix the problem on the first try.

How to Fix a Mixed File

If you think someone else’s information is on your credit report, here’s what to do:

Step 1: Get All Three Credit Reports

Start by requesting your reports from Equifax, Experian, and TransUnion at AnnualCreditReport.com — the only federally authorized site for free credit reports.

Why all three? Because each bureau may report different information. A mixed file might show up on one report but not the others.

Step 2: Send a Written Dispute

Write a detailed letter to each credit bureau reporting the error. Describe which accounts are not yours and include any supporting documents you have.

  • Use certified mail with return receipt

  • Include a copy of your credit report with the wrong accounts clearly marked

  • Attach proof of your identity and address

Step 3: Be Persistent

Bureaus are required by law to investigate your dispute, usually within 30 days. But mixed files can be stubborn. Don’t hesitate to follow up, escalate, or resend documentation if needed.

When to Call a Lawyer

If you've disputed the error and the credit bureaus still haven’t fixed your report, it may be time to talk to a lawyer.

Under the Fair Credit Reporting Act (FCRA), you have the right to accurate credit reporting. If a bureau fails to properly investigate or correct your report, you may be entitled to:

  • Actual damages (like loan denials or emotional distress)

  • Statutory damages up to $1,000

  • Attorney’s fees and costs

Typically, you don’t have to pay a lawyer upfront. If you win, the credit bureau pays your legal fees.

Serving Minnesota and Western Wisconsin

Tired of fighting a credit report error on your own? Book a free consult with FCRA attorney Todd Murray today.

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their finances. He’s recovered millions of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, clients describe Todd as professional, approachable, and easy to work with.

Common Credit Reporting Mistakes And How to Spot and Fix Them

Credit reports are supposed to tell the story of how you manage debt, but sometimes, that story gets the facts wrong. In fact, a recent study indicates that nearly 80% of credit reports have a mistake on them. Credit report errors can hurt your credit score, cost you money, and even affect your ability to rent an apartment or get a job.

Imagine being denied a mortgage refinance because of a late payment on your credit report that wasn’t actually late. This is exactly what happened to a former client from St. Paul, let’s call him Dave. Dave’s credit report showed a late payment to his cell phone provider. This report was dead wrong. Dave had the deposited check proving that the cell phone company got his payment on time. But this inaccurate late payment kept Dave from refinancing his mortgage.

Or imagine being denied credit because your credit report doesn’t have your married name on it. This is what happened to Jenny, another former client from Eagan, Minnesota. Jenny changed her last name when she got married. But her credit reports showed her old name and didn’t include her new, married name. This led to repeated credit denials for loans she should have easily qualified for.

As these examples show, even a single mistake on your credit reports can result in credit denials or higher interest rates.

At this point, you might be asking yourself “how can I avoid being like Dave or Jenny?” The answer is simple: check your credit reports at least a couple times a year and fix any mistakes immediately.

Here’s a breakdown of the most common credit reporting errors, how to recognize them, and what to do if you find one.

Incorrect Personal Information

It might seem minor, but even a misspelled name or wrong address can cause mix-ups, especially if you share a name with someone else.

Common issues include:

  • Wrong address

  • Incorrect date of birth

  • Misspelled names or name mix-ups

  • Wrong Social Security number (even one digit off)

Why it matters: Errors in personal info can lead to someone else's accounts showing up on your report or can be signs of identity theft or fraud.

What to do: If you notice incorrect personal info, file a dispute (sample letter and instructions below) with each credit bureau showing the error. Be sure to provide documents like a copy of your ID, Social Security card, or utility bill showing the correct information.

Accounts That Don’t Belong to You

Sometimes, accounts from someone else — like a family member or a complete stranger — end up on your report.

This could be due to:

  • Identity theft

  • Mixed files (your information getting confused with another person’s)

  • Credit reporting errors from lenders, such as Blaze Credit Union or Associated Bank.

Why it matters: Accounts that don’t belong to you could be a sign of a serious problem, like identity theft or a mixed credit file. They can also lead lenders to believe you have more debt than you really do, which can lead to credit denials or higher interest rates.

What to do: Review the account details carefully to make absolutely sure it isn’t yours. If you’re sure, dispute it right away with each credit bureau showing the error. You may also consider requesting that a fraud alert be placed on your credit file.

Incorrect Payment History

Another frequent credit report mistake is when your payment history is reported incorrectly.

Common problems:

  • Payments marked “late” when you paid on time

  • Missed payments that were actually made

  • Accounts showing the wrong status (e.g., “delinquent” or “in collections” when they’re not)

Why it matters: Your payment history has a significant impact on your credit score so when it’s wrong, it’s a big deal.

What to do: Gather proof, like payment confirmations or bank statements, and submit it when disputing the error with the credit bureaus. You may also contact the lender directly and ask them to correct the reporting.

Outdated or Duplicate Information

Sometimes, old or closed accounts stay on your report longer than they should.

Examples include:

  • Accounts that should’ve been removed (e.g., after 7 years)

  • Closed accounts still marked “open”

  • The same debt listed more than once (especially with collections)

Why it matters: Closed accounts reported as open or the same debt listed twice can make it appear that you are carrying more debt than you really are. This may have an impact on your ability to get credit in the future.

What to do: Check the age of the accounts. If an account has been delinquent for more than 7 years, it should be removed from your report. If it's still there, you can dispute it. For duplicates, include screenshots or printed reports to highlight repeated entries along with your dispute letter.

Reinserted or Re-Appearing Errors

Sometimes, an error you’ve already disputed and fixed comes back. This is called reinserted information and it’s a red flag.

Under the law, credit bureaus have to notify you if they reinsert a disputed item, but that doesn’t always happen.

Why it matters: Reinserted debts are a serious problem. After all, you’ve already disputed the mistake once and the credit bureau has agreed it was wrong. But now they’ve put the mistake back on your report, dragging down your score.

What to do: If a corrected error comes back, dispute it again and request the reinsertion notice. If they fail to notify you or continue reporting inaccurate information, you may have grounds for a legal claim.

Final Thoughts

Credit report mistakes are more common than most people realize but they’re not something you have to live with.

Start by getting your free report at AnnualCreditReport.com. It’s the only federally authorized source and lets you check your reports from all three major bureaus for free.

Already found a mistake? File a dispute as soon as possible, and be sure to keep copies of all documentation. If the credit bureau or creditor doesn’t correct the error, you may have legal rights under the Fair Credit Reporting Act.

FREE CREDIT REPORT ERROR RESOURCES

How Credit Report Errors Cost You Money, Housing, and Job Opportunities

Finding a mistake on your credit report can feel frustrating or even scary. You’re not alone. Every year, millions of Americans discover errors that impact their finances, housing, and even job opportunities. Understanding how credit report errors can affect you is the first step toward protecting yourself and fixing the problem. Let’s walk through the major ways these mistakes can cause real harm, and what you can do about it.

How Credit Report Errors Can Cost You Money

Even a small mistake can have a surprisingly big financial impact. When your credit report shows something it shouldn’t, like a late payment you never missed, or an account you don’t recognize, your credit score can drop. And a lower score often means higher costs:

  • Higher interest rates on loans and credit cards

  • Bigger down payments on homes and vehicles

  • Higher insurance premiums in many states

  • Unexpected fees or security deposits

For example, let’s say you apply for a mortgage. A difference of just 50 points on your credit score (caused by an error) could cost you tens of thousands of dollars in extra interest over the life of the loan. Errors aren’t just frustrating, they can hit your wallet hard.

How Credit Report Errors Affect Housing Opportunities

Your credit report doesn’t just influence lenders, it affects where you live, too. Landlords and property managers often run credit checks when screening rental applications. If they see:

  • A collection account you don't recognize,

  • An old unpaid balance that should have been cleared,

  • Or simply a low score caused by mistakes,

they might decide to deny your rental application, even if the information is wrong. Mortgage lenders are just as cautious. In some cases, an error could lead to a denied loan application.

How Credit Report Errors Impact Employment

Credit report errors can even affect your job prospects, especially for roles involving money, data, or sensitive responsibilities. Employers don’t see your score, but they can view major negative marks like collections or judgments. These can raise red flags about financial responsibility even if the information is false.

For instance, someone applying for a bank job at, say, Associated Bank, might be passed over if their report wrongly shows a defaulted loan. That's why reviewing your report before applying for jobs is just as important as updating your resume.

What You Can Do If You Find a Credit Report Error

The good news? You have strong rights when it comes to your credit information. Here’s what to do if find out there’s a mistake on your credit reports:

  • Request Your Full Report. You can get free copies of your credit reports at AnnualCreditReport.com.

  • Review Carefully. Look for incorrect balances, unfamiliar accounts, wrongly reported late payments, and outdated information.

  • Gather Supporting Documents. Bank statements, payoff letters, or other proof can help strengthen your case.

  • Dispute the Error. Send a written dispute to the credit bureau (and sometimes the company that reported the information). Make sure to keep copies of everything you send.

  • Follow Up. Credit bureaus usually have 30 days to investigate your dispute. Make sure you get written confirmation of the results.

Final Thoughts

Credit report errors aren’t just small glitches, they can have real consequences for your finances, your home, and your career. The key is not to panic. Most errors can be corrected with the right steps. And the earlier you act, the easier it is to prevent bigger problems down the road.

If you recently found a mistake on your credit report, you’re already doing the right thing by learning more. Stay informed, stay organized, and stay diligent. Your credit score, and your peace of mind, is worth the effort.

FREE CREDIT REPORT ERROR RESOURCES

Dealing with Gurstel Law Firm? What you need to know.

Who is Gurstel law firm?

The Gurstel Law Firm is a debt collection law firm headquartered in Golden Valley, Minnesota. Their lawyers routinely appear in court throughout Minnesota and also handle debt collection cases in Arizona, California, Iowa, Nebraska, Nevada, Utah, and Wyoming.

Gurstel does collection work for some of the largest banks, credit card companies, and debt buyers in the country. They are aggressive and very effective at recovering money for their clients.

What to do if you’re being sued by gurstel

If you’re dealing with a debt collection lawsuit from Gurstel, you typically have three options: (1) defend the case; (2) negotiate a settlement; or (3) file bankruptcy.

It’s critical to familiarize yourself with the court process. The lawyers at Gurstel know the court rules very well and will use your lack of familiarity to their advantage in pursuing a court judgment against you. Our free Minnesota Debt Collection Lawsuit Guide is a great place to start learning more about the process.

What to do if you’re being garnished by gurstel law firm

If Gurstel is garnishing your bank account or wages, there are four possible ways to stop the garnishment: (1) claim an exemption; (2) negotiate a settlement; (3) vacate the judgment; or (4) file bankruptcy.

When dealing with a garnishment from Gurstel, knowledge about the process and the pros and cons of each potential solution is critical. Our free Minnesota Garnishment Guide will get your started.

 

Need help dealing with Gurstel Law Firm?
Schedule a consult with debt defense lawyer Todd Murray.

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Since 2009, Todd has helped hundreds of Minnesotans dealing with debt collection by Gurstel Law. His work has saved his clients lots of money and many sleepless nights. Todd’s clients describe him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

The complete guide to collection judgments in Minnesota.

Part 1 — Debt Collection Judgment Basics

 

what is a judgment?

A debt collection judgment is a court order that you owe the creditor money. The judgment is the final decision in a collection lawsuit. Most judgments are entered by default after the defendant fails to properly respond. This is why it's so important to answer the summons and complaint.

What can the creditor do with a judgment?

Once a creditor has a judgment, it has the ability to garnish both your bank account and paycheck. It also creates an automatic lien against any real estate that you own, which you’ll have to pay off if you want to sell or re-finance. And in some cases, creditors will seize some of your personal property and have it sold to pay the debt.

how does a creditor find my bank or employer for garnishment?

A judgment creditor may issue a Demand for Disclosure, which requires you to disclose all of your assets. There are signficant penalties—including an arrest warrant—for not complying.

Judgment creditors may also call you in for an interview—called a deposition—and ask you questions about your assets.

how long does a judgment last?

Judgments last for ten years and then can be renewed for another ten years. There is no limit to how many times a judgment can be renewed as long as the creditor takes the appropriate steps every ten years. So a judgment against you will potentially last forever.

does a judgment accrue interest?

Judgments currently accrue interest a 4% annually under Minnesota law. This might actually be a relief if your debt was accruing a higher interest rate before the judgment.

WILL IT BE ON MY CREDIT REPORT?

The major credit bureaus—Equifax, Experian, and TransUnion—do not currently report judgment information. However, other credit reporting agencies, such as LexisNexis, do report judgments, so your ability to get credit, housing, and employment might be affected.

Part 2 — Dealing with a Collection Judgment

 

option #1 — If you can afford it, negotiate a settlement

For many people, the best choice is to negotiate a settlement of the debt collection judgment. Settling the judgment allows you to avoid the stress and inconvenience of garnishments and liens.

It’s important to understand that great deals are hard to come by after judgment because you've lost most of your leverage. But if you can demonstrate a significant financial hardship, or have a lump sum of cash available, you may be able to get the creditor to knock a decent chunk of the balance off.

It’s also important to be realistic: if the judgment is for a lot of money, or if you have several judgments, can you really afford to settle?

option #2 — if you meet the necessary criteria, vacate the judgment

If the judgment was obtained by default, you may be able to get it vacated or undone. Vacating the judgment doesn’t make the debt go away, it just sends the case back to the beginning and gives you a chance to defend yourself.

In our experience, vacating a judgment is a long-shot option for most people for three reasons:

  • First, you must provide strong evidence that you never received the creditor’s lawsuit or that you had a good reason for not responding. Just telling the judge “I never got it” or “I didn’t know I needed to respond” isn’t going to cut it. 

  • Second, you have to show the court that you have a valid defense to the debt. 

  • Third, in most cases you have to vacate the judgment within one year of its entry. 

Because of these challenges, the vast majority of people would be better off choosing one of the other three options to deal with the judgment.

 

option # 3: If all else fails, bankruptcy may be your best option

If you can’t afford to settle and aren’t able to get the judgment vacated, your best choice is probably bankruptcy. Bankruptcy puts an immediate stop to garnishments and other collection activity. It allows you to remove judgment liens from your property. And it wipes out any other debts lurking out there.

Ready to talk to a lawyer about a judgment?
Schedule a consult with debt defense lawyer Todd Murray.

Since 2009, Todd has helped hundreds of Minnesotans deal with lawsuits, judgments, and garnishments. His work has saved his clients millions of dollars and many sleepless nights. Clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

What is wrongful repossession?

what is repossession?

When you buy a vehicle on credit, the contract will give the lender the right to take back the vehicle if you fall behind on your loan payments. In Minnesota, most repossessions are done by “self-help,” meaning without any court oversight.

How to know if a repossession is wrongful

In a self-help repossession, the lender has to follow certain steps, otherwise the repossession may be illegal:

  • You must be behind on payments. Seemingly, this would go without saying, but we occasionally see cases involving people who weren't late on their payments when their vehicle was repossessed. I've also heard of situations where the vehicle was repossessed even after the loan was paid in full.

  • If your lender has accepted repeated late payments, they must send you a letter first. In Minnesota, this is called a Cobb letter. The letter must give you notice that although your lender has accepted late payments from you in the past without repossessing, it now requires you to strictly comply with the payment due dates or it may repossess. This notice requirement may be unique to Minnesota.

  • The repo agent can't breach the peace during the repossession.  Although there isn’t a bright line definition of a breach of the peace, it typically occurs when the repo man has to resort to force or threats of force to take your vehicle.

  • The repo man can't break into a locked garage. Minnesota law forbids the repossession agent from breaking into your garage to seize your vehicle. However, this rule is a little fuzzier if you share a garage with other people, like in an apartment building.

  • The police can’t actively help the repossession. Sometimes, the repo company enlists the local police department to stand by during the repossession. As long as the police merely stand by to keep the peace, it’s probably not illegal. However, if the officers actively engage in the repossession, the repo may be against the law.

    Most of the courts that have looked at this issue have found that the police may act to diffuse a volatile situation, but may not aid the repossession agents in such a way that the repossession would not have occurred but for their assistance. If the police threaten you with arrest or command you to turn over the vehicle, they've probably crossed the line from keeping the peace into active involvement.

If your vehicle was wrongfully repossessed, you can sue for damages.

If the repo company wrongfully repossess your vehicle, you can sue them (and the lender) for damages. Depending on the circumstances, the defendants may have to pay your attorney fees and court costs.

What to watch for after your vehicle was legally repossessed

Even if the repossession was strictly by the book, there are a number of things you need to know about the post-repossession process. In most cases, once your lender repossesses the vehicle they will sell it at an auction and apply the sale proceeds to your loan balance. Keep an eye on a few things during this process:

  • The lender must send you a letter before and after the sale. The pre-sale letter must tell you when, where, and how the vehicle will be sold. It must also tell you how much money you have to pay to get the vehicle back. The post-sale letter must tell you how much the vehicle was sold for and explain whether you still owe money on the loan.

  • You may get sued if there is still a balance on your loan. This is called a deficiency lawsuit. It happens in cases where the auction sale proceeds were not enough to pay off the full balance of the loan. In this case, the lender may sue you to recover the remaining balance. Fortunately, there are a number of ways to defend a repossession deficiency lawsuit.

What to do if your vehicle hasn't been repossessed yet

If the lender is threatening to repossess, but hasn't seized your car yet, there are some options to avoid the repossession:

  • Can you re-finance the loan so that you can better afford the payments? Credit unions may offer better rates than more conventional auto lenders.

  • Can you sell the vehicle to a private party and get enough cash back to repay the loan? This is probably a long shot, but may be worth exploring just to cover all your bases.

  • Is filing bankruptcy an option? Both Chapter 7 and Chapter 13 bankruptcy may provide you with a number of attractive solutions to avoid repossession.

If you’ve explored all of these options with no luck, and repossession seems like a sure thing, here are some tips. First, keep all letters and documents related to the repossession, including the envelopes. Second, remove any non-essential personal property from your car (don’t forget the glovebox and trunk). Make a detailed list of stuff that you must keep in the car, like jumper cables, child seats, flashlights, tools, etc. Or better yet, take pictures or video. Finally, keep in mind that you don’t have to consent to the repo man entering your house or garage. But never use violence against the repo man. Keeping your car isn’t worth risking a dangerous confrontation.

Be very careful about hiding your vehicle to prevent a lawful repossession

Under Minnesota law, it may be a crime to refuse to disclose the location of, or otherwise conceal, a vehicle that your lender is legally entitled to repossess. The penalties include a hefty fine or even imprisonment. It’s fine to park your car in your garage, but be really careful about hiding or concealing it somewhere else to evade a lawful repossession.

Ready to talk to a lawyer about a repossession in Minnesota?
Schedule a free consult with attorney Todd Murray.

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Since 2009, Todd has been helping Minnesotans combat wrongful repossessions and defend repo deficiency lawsuits. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

Debt collectors cannot lie to you

The Fair Debt Collection Practices Act forbids a debt collector from making any false or misleading statements when they are attempting to collect a debt. If a debt collector lied to you, here's what you need to know about your rights under the FDCPA.

The FDCPA applies to “debt collectors” collecting “consumer debts”

The FDCPA only covers a debt collector that is collecting a debt for someone else. It does not apply to a creditor collecting its own debts. So if the false statement was made by a bank or credit card company that is collecting its own debts, the FDCPA doesn’t apply. But the FDCPA does apply to collection agencies, debt buyers, and law firms who are collecting debts for someone else.

In addition, the FDCPA only applies when the debt being collected is a consumer debt. This is a debt used for personal, family, or household purposes. If the debt was incurred for a business, the FDCPA doesn’t apply.

Common debt collection lies

Although the FDCPA is clear that virtually any false statement is a violation, there are some collection lies and misleading statements that seem to happen frequently. These include:

  • Telling you that you owe a debt that you already paid or that was discharged in bankruptcy

  • Threatening to sue or garnish you after the statute of limitations has expired;

  • Incorrectly reporting information on your credit report;

  • Mis-stating your rights in student loan collections;

  • Claiming that you personally owe a debt you have no obligation to pay, such as a debt for an ex-spouse or a deceased relative;

  • Incorrectly stating the balance of your account (possibly because of unauthorized fees or uncredited payments);

  • Suggesting that they are affiliated with an attorney when they are not;

The false statement probably has to be "material"

Although the FDCPA doesn't say anything about it, many courts have adopted a rule that the false statement has to be "material." This generally means that it's not enough to show merely that the debt collector lied to you. You must also show that they lie impacted your ability to evaluate your options in some way. In my opinion, any statement about the balance of the account, the legal status of the account, your legal rights, or the collector's legal remedies should be considered material.

If a debt collector lied to you, hold them accountable under the FDCPA

The FDCPA gives consumers the power to sue a debt collector that violates the law. It’s a great way to stop collection harassment cold and to hold the debt collector accountable for its illegal conduct. Under the FDCPA, a successful claim gets you:

  • Up to $1,000 in statutory damages (even if you’ve suffered no monetary loss);

  • Provable actual damages (including for emotional distress);

  • Your attorney fees and court costs must be paid by the collector

Most consumer lawyers, including me, handle FDCPA lawsuits on a contingency fee. This means that you don’t pay us any fees unless I recover money for you and those fees come from the collector’s pocket, not yours. Congress wrote the FDCPA this way to incentivize people to enforce the FDCPA and help the government regulate debt collectors and ensure compliance with the law.

How to defend a repossession deficiency lawsuit

If you’re being sued for a repossession deficiency, use our Minnesota Collection Lawsuit Guide to familiarize yourself with the process.

After your lender repossesses your car, they will sell it and apply the sale proceeds to your loan. In most cases, there will still be a deficiency remaining. More often than not, your lender will then sue you for that deficiency. If that happens, here are some possible defenses to the deficiency lawsuit:

  • Total amount of credit provided was less than $7,500. Under Minnesota law, if the total amount of the loan was $7,500 or less, than the creditor cannot chase the borrower for a deficiency.

  • Statute of limitations. In most Minnesota debt collection cases, such as credit cards, the statute of limitations is six years. However, the statute of limitations for a repossession deficiency claim is likely four years. If the creditor brings the deficiency lawsuit over four years after you made your last payment, the statute of limitations on the claim may have passed.

  • Incomplete or ineffective assignment of the loan. Like credit card debts, many repossession deficiency accounts are sold to third-party debt buyers. The debt buyer must be able to provide a complete and detailed chain of title of ownership of your account.

  • The sale of your car after repossession was not commercially reasonable. The general rule is that every aspect of the sale of a car after repossession must be commercially reasonable. This essentially means that the creditor must act in good faith and use its best efforts to get a fair price for your car.

  • The lender failed to send you the required pre- and post-sale notices. The pre-sale letter must tell you when, where, and how the vehicle will be sold. It must also tell you how much money you have to pay to get the vehicle back. The post-sale letter must tell you how much the vehicle was sold for and explain whether you still owe money on the loan. Failure to send these letters may prevent the lender from collecting a deficiency.

It's also possible that the creditor may not have followed the proper procedures when they repossessed your car. This may allow you to bring a counterclaim against them in the deficiency lawsuit. While a counterclaim is not technically a defense to a deficiency lawsuit, a valid counterclaim can often lead to a reasonable settlement of the deficiency claims or even offset the deficiency claim altogether.

Ready to talk to a lawyer about a Minnesota deficiency lawsuit?
Schedule a consult with attorney Todd Murray.

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Since 2009, Todd has been helping Minnesotans combat wrongful repossessions and defend repo deficiency lawsuits. Todd’s clients have described him as “very professional and easy to work with.” He lives in Minneapolis with his wife and four children.

The Minnesota Guide to Chapter 13 Bankruptcy: Part 4—The Process

Part 1—Chapter 13 Basics
Part 2—Benefits of Chapter 13
Part 3—How Your Plan Payment is Calculated

HOW DO I GET STARTED?

The Chapter 13 process starts when you hire a lawyer. We offer consultations by phone or video for your convenience. Once you decide it’s time to move forward, we’ll send you a services agreement to review and sign electronically. We also accept electronic payments. Our online questionnaire is easy to use and can be completed at your convenience.

What Does Chapter 13 cost?

In Chapter 13, you pay a flat fee out-of-pocket. When you're in financial trouble, you want predictability. You don't want your lawyer to run up the bill on you. That's why we quote you a flat fee at the beginning of the process, and that's what you pay. We agree on it at the start so you can plan for the expense.

Unlike Chapter 7, you don't need to pay your whole fee upfront in Chapter 13. In fact, in many cases Chapter 13 costs less up front than Chapter 7. We generally require a minimum of $1,000 before filing in a Chapter 13, but this can depend on your case.

What happens after you file your case?

As soon as the case is filed with the court, your bankruptcy protection begins. No creditors can call, write, or sue you, and any pending foreclosures, repossessions, or garnishments must stop immediately. After that, you’ll get a date for your bankruptcy meeting of creditors.

What is the meeting of creditors?

A meeting of creditors is a short interview that happens in person, or by phone/video. The bankruptcy trustee will go over your assets, debts, income, and expenses with you, and make sure you’re paying an appropriate amount to your creditors. Once we get the trustee and your creditors to agree to the plan, your case will be on track to get confirmed.

What happens after the plan is confirmed?

Once your case is confirmed, there’s not usually much to do in your case other than make your plan payments. We’ll generally check in every year around tax time, and you’ll have to let your lawyer know if you are having trouble making your payments so you can get some help. Because of your bankruptcy protection, your creditors will be breaking the law if they contact you after you file Chapter 13, so you should let your bankruptcy lawyer know right away if a collector is calling. We can put a stop to the calls and may even be able to get them to pay you for breaking the law.

Part 1—Chapter 13 Basics
Part 2—Benefits of Chapter 13
Part 3—How Your Plan Payment is Calculated

The Minnesota Guide to Chapter 13 Bankruptcy: Part 3—How Your Plan Payment is Calculated

Part 1—Chapter 13 Basics
Part 2—Benefits of Chapter 13
Part 4—The Chapter 13 Process

Chapter 13 involves paying your disposable income to creditors over a three or five-year period. Whatever isn't paid during that period is wiped out. But to figure out whether Chapter 13 is a good option, you need to know exactly how much your monthly payment will be. Here’s how we figure that out.

First, We predict your future income

To figure out your Chapter 13 payment, we need to predict your future income. We start by averaging out your income over the past six months. This amount can then be adjusted to account for changing circumstances, for example if you have just taken a pay cut or you know you won't be receiving the same amount of overtime.

Next, we predict your future expenses

Next, we figure out your expenses. We look at all the expenses that are necessary to take care of your family's needs: food, rent/mortgage, car payment, utilities, etc. We also look at things that you know you’ll be spending, like car repairs, home maintenance or dental work. Then we look at things you should be spending on, but haven't because you've been in financial trouble. This can include health insurance and other medical expenses, sometimes a 401(k) or life insurance, etc. If there's something that's not on our list of ordinary expenses, that doesn't mean we can't deduct it, as long as we can explain why it’s reasonable and necessary.

Once we count all these expenses, we subtract them from income and we get an idea of your disposable income.

Your attorney will help maximize your expenses

As your attorney, it’s our job is to protect the money that’s necessary for you to take care of yourself and your family. So we ask for two things: 1) verification of your expenses, so we can prove that you actually need to spend that money; and 2) information on why your expenses are reasonable and necessary.

For example, one client had an $800 monthly bill for auto fuel. This may seem unreasonably high, until we realized that the client lives 60 miles from where he works. If we can explain to the court why an expense is reasonable, there is a better chance it will be allowed.

THe payment has to be enough to cover required debts

Chapter 13 payments must be large enough to pay certain required debts. For example, if you are trying to get current on a mortgage, your total plan payments must cover the amount of your mortgage arrears. Plan payments also must cover any secured debt (car loans) that end within the plan period. Also, plan payments must cover any priority debt, such as some tax debt or government penalties within the plan period. If the total plan payments are enough to pay all of these required debts over the plan period, then your plan can be approved.

The payment has to treat your creditors fairly

If you have non-exempt property that you’re looking to protect in a Chapter 13, your Chapter 13 payments must be at least the value of your nonexempt property. In other words, in Chapter 13 your unsecured creditors can't receive any less in the plan than they would have received in Chapter 7 if your nonexempt property was liquidated.

Part 1—Chapter 13 Basics
Part 2—Benefits of Chapter 13
Part 4—The Chapter 13 Process