Credit Reporting Errors

The Fair Credit Reporting Act

The Fair Credit Reporting Act regulates credit bureaus and the businesses that provide them with information. The FCRA imposes two major duties: (1) credit bureaus must implement procedures to ensure the maximum possible accuracy on all credit reports; and (2) credit bureaus and those who furnish them with credit information must thoroughly investigate and correct mistakes on a report once they’ve been notified of the mistake.

If you have an error on your credit report, the FCRA provides the procedure to get that mistake corrected. And if the credit bureaus or furnishers of information unreasonably refuse to correct the mistake, the FCRA provides powerful legal remedies against the bureaus and furnishers.

Since 2009, I have represented people in Minnesota and Western Wisconsin who have been harmed by mistakes on their credit reports.

How a Credit Reporting Error Becomes a FCRA Case

To have a case under the FCRA, there must be something on your credit report that isn’t accurate. The law is clear that reporting accurate information doesn’t give rise to a FCRA case. But an inaccuracy itself isn’t enough in most cases. For most inaccuracies, you have to notify the credit bureaus of the mistake before the remedies under the FCRA kick in.

So the elements for a typical FCRA case are:

  • A clear inaccuracy on your credit report

  • A written dispute sent to a credit bureau

  • A failure to conduct a reasonable investigation

  • Measurable harm, such as loan denial, higher interest rates, housing issues, employment problems, or documented emotional distress

  • In some cases, statutory damages are available, even in the absence of provable actual harm.

Common FCRA Violations

The most common FCRA violations I’ve handled include:

  • Accounts that were paid off or wiped out in bankruptcy being reported as still owed;

  • Mixed credit files (another person’s data appears on your report)

  • Credit obtained through identity theft or without your authorization showing on a report

How the FCRA Process Works

A FCRA case almost always begins with a written dispute to the credit bureaus reporting the error. This can be a little counterintuitive. Most people assume you should notify the creditor furnishing the information directly. But the FCRA is clear, you must send the dispute notice to the credit bureaus themselves.

Once they have notice, the bureaus must notify the furnisher of the dispute. Both the furnisher and credit bureau must conduct their own, separate, investigations and notify you of the results.

If the bureau fails to correct a verifiable inaccuracy after being notified of it, and that failure causes actual harm, a FCRA claim arises. In some cases, claims may also be brought against the company furnishing the inaccurate information, such as a lender or debt collector.

When disputing an inaccuracy, clarity and documentation matter. You should write your dispute letter as if you were explaining the problem to a kindergartener. And you should attach all documents and evidence necessary to prove that the info on your report is wrong.

If you spend enough time online, you’ll see some “experts” advocate for vague, shallow disputes in an effort to trick the credit bureaus and furnishers into violating their investigation obligations. In my experience, this is never a good way to get a legitimate mistake fixed. Dispute letters should be written with the clear intention of getting the mistake corrected, not setting up a frivolous FCRA case.

FCRA and Bankruptcy

Credit reporting errors frequently arise after bankruptcy. This is especially disheartening because the purpose of bankruptcy is to provide filers with a fresh financial start. This fresh start only happens when the credit report accurately reflects all the debts that were wiped out in the bankruptcy. It’s a terrible indictment of the credit industry that I’ve had to bring numerous FCRA cases on behalf of bankruptcy filers to get their credit reports corrected wen a debt wiped out in bankruptcy was still showing as delinquent on their report.

FCRA Damages and Attorney Fees

The FCRA allows recovery of actual damages caused by inaccurate reporting. Typical actual damages come from credit denials, credit granted, but on worse terms, and emotional distress. And if you can prove that the FCRA violation was willful, statutory and punitive damages are be available. The FCRA is fee-shifting, meaning that if a violation is proven, the defendant is responsible for your attorney fees and costs.

Because of this fee-shifting, I handle FCRA cases on a contingency basis.

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

Serving Minnesota & Western Wisconsin

Since 2009, Todd has helped people across Minnesota and Western Wisconsin fix credit report errors and reclaim their financial stability. He’s recovered hundreds of thousands of dollars for clients and corrected all kinds of credit reporting mistakes. Originally from Wisconsin, and now based in the Twin Cities, Todd brings a close understanding of the region and the challenges local residents face. Clients describe him as professional, approachable, and easy to work with.

schedule a consult with todd

Examples of Clients We’ve Helped:

WISCONSIN CREDIT REPORT ERROR
Our client, an Ashland, Wisconsin man, filed Chapter 7 bankruptcy. A few months later, he noticed that a credit card account that was included in his bankruptcy was on his credit report as due and owing. He disputed the account by himself, but they wouldn’t fix it.

MINNESOTA IDENTITY THEFT VICTIM
Our client, a Minneapolis woman, was a victim of identity theft. About 12 accounts had been fraudulently opened in her name. She had been trying for months to get the accounts removed from her credit report, but the credit bureaus refused to help.