There are times when people have their identity stolen. This usually results in them having negative items on their credit report. It’s also possible for a merchant to make a mistake and put something bad on a person’s credit report. In some situations, the credit reporting agency can make a mistake that causes negative items to be placed on a person’s credit report. When this happens, the goal is to have the negative items removed as quickly as possible. In some situations, the credit reporting agency may refuse to correct the mistakes. It could take legal action to fix a person’s credit history.
This journey to correcting a credit report begins with filing a dispute with the credit reporting agency. A person has the right to dispute anything they feel is wrong on their credit report. Once an individual has disputed the items, the credit reporting agency is obligated to delete the disputed items or do more investigation on and report their decision to the person filing the dispute. It’s possible the credit reporting agency will realize certain items are mistakes and remove them. It’s also possible the credit reporting agency contacted the merchant or source of the item and believe the charges are accurate. To correct a credit report will now take more effort.
A person can directly contact the source of the negative reporting. They may be able to discuss the situation and agree to have the items removed. Some creditors have seen their mistake and sent a letter to the credit bureau explaining the mistake and requesting it be removed. If the merchant refuses to remove the item, it is time to call the credit reporting agency directly and request more investigation be done concerning the disputed items. It doing this does not get the desired result, a person can file a complaint about the credit reporting agency with the Federal Trade Commission (FTC).
All states have laws that address issues with credit reporting agencies as well as creditors. A person can file a complaint with their state’s consumer protection agency. They won’t represent people on an individual basis. If there are enough complaints filed against a company and significant evidence showing the business is engaging in bad behavior, the state agency will take action against the company.
Lawsuit Against Creditor
Inaccurate information on a person’s credit report can cause them to experience many negative things. Individuals have been denied loans for cars as well as houses, denied employment in certain industries and more. These are complicated situations. An experienced attorney will know how a lawsuit could provide the best possible result.
Lawsuit Against Credit Reporting Agency
People can experience significant damage to their lives and continue to be harmed if a credit reporting agency continues to provide incomplete or inaccurate information. This may happen even after a person has filed complaints with the credit reporting agency, the FTC, the merchant and more. In some cases, a person is left with no other option but to file a lawsuit with the credit reporting agency. It is possible for an individual to sue for actual damages. This could include lost wages, attorney’s fees as well as court costs. People can also sue for intentional infliction of emotional distress as well as defamation and more. Should the behavior of the credit reporting agency be outrageous, a person can sue for punitive damage designed to punish the bad behavior.
Dealing with negative items on a credit report can be easily corrected. Problems develop when credit reporting agencies do not acknowledge fraudulent charges and merchants refuse to acknowledge their mistakes. It can significantly impact an individual’s life. Contact the specialists at Morgan Legal Group PC to help guide your path.