FCRA LAWYERS CHICAGO IL

The Fair Credit Reporting Act (FCRA) serves as a shield for consumers against unfair treatment by credit reporting agencies (CRAs) while allowing lenders and other entities to use credit reports to assess an individual’s creditworthiness. These CRAs, also known as credit bureaus, collect data from a person’s credit history, such as payment patterns and timing. Major credit reporting agencies include Equifax, Experian, and Trans Union. This information is used throughout Chicago by landlords, employers, and other entities to make decisions on lending money or renting apartments. However, incorrect or incomplete data on a person’s credit report can cause harm. If you’re facing a lawsuit from a credit card collection agency, credit reporting agency, or credit bureaus, or are a victim of other Fair Credit Reporting Act violations, seek help from an FCRA attorney at Fair Credit Attorneys to assist with any credit report dispute. We can assist you with FCRA violations, credit report problems, negative information, incorrect information, false reporting, credit denials, disputed information, and help dispute inaccurate information that could cause financial harm.

Can I sue for FCRA violations?

“Credit repair” companies offered services or products that promised to fix a person’s credit report, allowing them to start anew and improve their credit scores. However, these “quick fixes” were not legally able to deliver what consumers needed. Even though Chicago consumers paid these companies, negative credit information remained on their credit reports for legal time periods, usually between three to seven years. Additionally, debt collectors still contacted them, causing emotional distress, inability to obtain credit, and embarrassment.

The Federal Credit Repair Organizations Act is a consumer protection federal law enacted in September 1996 to represent consumers. This statute prohibits credit repair organizations from misleading or misrepresenting their services and engaging in fraudulent activities. The Act also prevents credit reporting agencies from sharing your credit score, a person’s credit information, credit accounts, or other information without your permission. Incorrect data and false information in credit reports from credit agencies harms Americans, but you can sue to receive compensation for damages suffered with the assistance of an FCRA attorney.

Under the Fair Credit Reporting Act, you have the right to accurate information and equitable credit file reporting from the major bureaus. If the credit bureaus, a creditor, or another entity violates the Fair Credit Reporting Act, you can sue. You have up to two years from the date you discovered the Fair Credit Reporting Act violation to sue. However, in some cases, you may have up to five years from the date of the violation to file a lawsuit. Therefore, contact a credit report attorney at Fair Credit Attorneys so we can determine the statute of limitations that applies to your case.

What damages can I receive in an FCRA lawsuit?

If your Fair Credit Reporting Act rights are violated, you may be able to receive actual damages, punitive damages, and attorneys’ fees. The amount and type of damages you receive depend on whether the violation was intentional or due to negligence. If you can prove that a CRA or another entity violated your Fair Credit Reporting Act rights, didn’t use written permission or reasonable procedures, you may recover actual damages, which have no limit, or statutory damages ranging from $100 to $1,000. In cases where an individual violated your rights and obtained a copy of your free credit report from one of the credit reporting companies by lying or used it fraudulently in a case of identity theft, your damages may be greater than your actual damages or $1,000. Actual damages refer to provable financial losses that you suffered as a result of the violation.

What do statutory damages refer to?

To prove a willful violation, it is necessary for your lawyer to demonstrate that the infringement was done recklessly and that the person or entity was aware of it. In situations where a single defendant is involved in multiple credit file report cases with hundreds of violations, statutory damages may be awarded. These damages are granted during the complex legal process when the same defendant commits multiple violations against various victims.

What are the typical credit report errors?

The credit bureau may make the top three mistakes on your credit report due to incomplete or inaccurate information in your credit file. These mistakes commonly involve an incorrect address, misspelled name, or an entirely wrong name. Nonetheless, according to the Consumer Financial Protection Bureau, other errors are prevalent, such as incorrect dates for payments or account openings, falsely reported closed accounts as open, and credit reporting of accounts that are falsely labeled as delinquent or late. Another common mistake is when someone is erroneously reported as the account owner instead of an authorized user. You may dispute these errors with the credit bureau by gathering evidence and submitting a letter explaining the mistake if you find an error in your free credit report. The major credit bureaus have an online dispute process that specifies the necessary documentation for verifying your identity and correcting the inaccurate information.

What constitutes a willful violation of the FCRA?

Unfortunately, there are entities and individuals who violate the FCRA and breach your trust. One type of violation is a breach of privacy. The credit bureaus are not allowed to disclose your information without your consent. It is a violation if a new employer, landlord, or any entity that has no legitimate reason to access your credit information obtains your credit report without your permission. You are not required to provide your credit information to a university, a potential employer, or anyone you plan to do business with.

Another violation occurs when credit information is requested from a bureau without a permissible purpose. For instance, a potential employer in Chicago must obtain written consent from you and have a valid reason to check your credit.

Your credit card company or loan collector should never provide incorrect or inaccurate information to a CRA, such as overstating the total balance on your account or reporting on-time payments as late. They should not supply information that they know is false as this is a violation of the FCRA.

A common mistake is when a CRA mixes information from two different people who have very similar information. If you have a common name or live in the same area as someone with similar information, then the bureaus must ensure that the information they provide is accurate. Inaccurate information, such as mistaking you for someone with the same name in the same area, is a violation of your rights under the FCRA. It is advisable to check your credit report regularly, especially if you have a common first name or the same name as someone else in your family, to ensure you are not a victim of identity theft or error.

What is an FCRA dispute?

The FCRA has two types of disputes: direct disputes and indirect disputes. A direct dispute occurs when you dispute incorrect or inaccurate information on your credit report directly to the company that furnished the information, usually a creditor. An indirect dispute is when you dispute wrong information to a CRA, such as Equifax.

Many people believe that filing a direct dispute with the company that provided the inaccurate information is the best route. However, an indirect dispute can be more effective. By law, the credit bureau must conduct a reasonable investigation of the disputed information and notify the data furnisher of your dispute, making them responsible for conducting a reasonable investigation of your claim. If your efforts are unsuccessful, you can sue the credit bureaus and the data furnisher in federal court under the law.

Since an indirect dispute enables you to file a lawsuit under the FCRA and federal litigation may be necessary to remove inaccurate information from your credit report, it is often recommended for making effective changes. When you schedule a free consultation with Fair Credit Attorneys, our FCRA lawyers can guide you through the process and discuss the advantages and disadvantages of each option based on your specific case.

How do I make corrections on my Credit Report?

Having errors on your credit report can cause significant damage to your creditworthiness. You may face difficulties in obtaining credit, loans, or opening new credit accounts. In addition, errors indicating identity theft can be even more concerning. For instance, if you notice that a payment is reported as late, while you actually paid it on time, or if there are derogatory marks in your credit history from over seven years ago, it could be a sign of identity theft.

To resolve credit report errors, you need to contact both the credit bureau and the organization that provided the inaccurate information. These entities are responsible for correcting any inaccurate or incomplete information in your report under the Fair Credit Reporting Act. The three major credit bureaus, Equifax, Experian, and Transunion, accept online dispute submissions.

In your dispute letter, you should include your complete name, correct address, telephone number, and email address. If the bureau requests hard copies, you should send copies of the supporting documents, but never the original ones. Also, indicate the reason for your dispute and upload any relevant information, such as your passport. The investigation of your dispute may take 30 to 45 days to complete. If your dispute is denied, you can file a complaint with the Consumer Financial Protection Bureau.

Studies show that around 34% of Americans have found at least one error on their credit reports. Common credit report errors include inaccurate credit limits, incorrect dates of payments or late payments, incorrect dates that accounts were opened or closed, and incorrect balances on accounts. Therefore, it is crucial to check your credit reports regularly for potential credit report errors, not just inaccurate contact information.

If you need help disputing credit report errors, Fair Credit Attorneys can provide legal assistance. They have helped thousands of clients in Chicago, IL through the dispute process and offer a free consultation to learn about your case and provide guidance on your rights under the Fair Credit Reporting Act. Upon determining that you have a valid case, they will investigate and work hard to ensure success in your case.