Credit report errors? What are the benefits of the Fair Credit Reporting Act?

Last week's blog highlighted key info on how to properly correct and dispute credit reporting errors and brought in a number of consumer emails.

Frustrated consumers who find themselves in longtime battles with at least one, if not all, of the major credit reporting agencies, while fighting to correct inaccurate or fraudulent data contaminating their credit file, all too often ponder the same question; "Why is it so difficult to get them to correct their errors?"

That's a loaded question. Many of us believe that answer a number of reasons -none of which have changed in years. A few viewpoints include; the system itself is broken, and long over due for overhaul, the cra's have too much power over our data and to whom they decide to sell it to.  Most people believe they have little to no incentive to make any effective technological, procedural, staffing or policy changes needed to keep up with the billions of pieces of data they handle. Face it, they make hefty profits selling our data and then turning around and selling us the "privilege" of monitoring it -for them.

The second most FAQ, is without a doubt, "Can I sue the credit reporting agencies for failing to resolve my complaints?  

When repeated requests to correct erroneous data go ignored and the handling or mishandling of your data and your disputes negatively impact your life, then you can usually sue the credit reporting agencies --as well as the creditor who furnished the information to the credit reporting agency.

My friend, John Watts, consumer attorney and defender of consumer rights, from AlabamaConsumerLawBlog.com responds to these questions below:

You discovered one or more errors on your credit reports and you have disputed the errors directly with the credit reporting agencies

But the errors still remain.

And now you are thinking about suing the credit reporting agencies and the furnisher of the false information.

So what exactly is the benefit to you of suing under the Fair Credit Reporting Act?

The five benefits (aside from restoring your true and accurate credit file) are:

•     It is the best way to force the credit bureaus and the creditors to correct errors;

•     You can recover actual damages for the harm the errors have caused you;

•     Your attorneys can be paid by the companies that caused the errors so it does not cost you any out of pocket money to hire your lawyers;

•     You may be allowed to recover statutory damages (when you can't show actual damages) and punitive damages; and

•     Finally, you show these companies they cannot push you around

For a more in-depth article on these 5 resason click here




If you are in need of an experienced FCRA attorney,visit
National Association of Consumer Advocates and search for one in your area.