Any business enterprise that furnishes credit handles the personal information of consumers. Some businesses, such as banks and other financial institutions, may handle the data of millions of consumers. Whenever names, birthdates, social security numbers, and other personal information is exchanged and disseminated, especially through electronic media over the internet, the potential for errors and other mistakes is rampant.
Any former bankruptcy debtor who believes his or her credit has been damaged by false credit reporting can obtain a full credit file disclosure, which is different than a credit report as it typically contains more information than a standard credit report. Upon reviewing this disclosure, a consumer should be able to have enough evidence to dispute any false or incorrect information with the credit reporting agencies.
It is crucial that consumers know that formally disputing a mistake with the credit reporting agencies is a necessary act when disputing any credit reporting mistakes. The Fair Credit Report Act (FCRA) requires filing a dispute with the credit report agencies as a prerequisite to having any private remedy for damages suffered as a result of false, inaccurate credit reporting.
Consumers may sue for credit damaged by reporting to credit bureaus of erroneous account details such as balances owed and late payments. They may also sue for a creditor wrongly dealing with an issue related to identity theft. Consult the Morrison Law Group to learn about your options in these situations.
Damages for loss include:
- Increased out-of-pocket expenses for payments on high-interest loans;
- Loss of credit capacity;
- Loss of credit expectancy;
- Loss of credit reputation;
- Loss of time; and
- Emotional stress.
Disputed mistakes that are not corrected may require legal action to compel results. If an actual mistake is disputed and never resolved, consumers have the following remedies for willful violations of the FCRA:
- Actual damages of not less than $100 and not more than $1000 per violation;
- Emotional damages for emotional stress or physical ailments caused by the erroneous reporting; and
- Punitive damages.
Consumers may be awarded the actual damages they sustain for negligent violations of the FCRA.
Theron Morrison has helped 8,000 people file bankruptcy and gain a fresh start. He has helped over 20,000 Utah residents deal with all types of financial difficulties caused by various severe and tragic events. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.