info@carolinalaw.com
info@carolinalaw.com
The process of credit reporting involves collecting, examining, and preserving data relating to an individual’s credit history and financial conduct. This data is used to create a credit report, which provides a comprehensive overview of your financial obligations and activities, including unpaid debts, payment history, and public records. Lenders, employers, landlords, and other entities rely on this information to assess an individual’s creditworthiness and make informed decisions. A healthy consumer report can open doors to better interest rates, job opportunities, rental properties, and more. Therefore, the information on your consumer history must be accurate and protected. Unfortunately, credit reporting errors are all too common.
Because credit reporting is so vital today, federal and state governments enacted strict regulations on the industry. The FCRA was enacted in 1970 to safeguard consumers against unjust actions related to credit reporting. This federal law sets out rules for how consumer reporting agencies (CRAs) collect, employ, and reveal customer information and provides individuals with specific rights regarding their credit reports.
Other protections include:
Both consumer reporting agencies (companies like Equifax, Experian, and TransUnion) and credit furnishers (companies who provide information to consumer reporting agencies such as your creditors) are subject to the requirements of the FCRA. Consumer reports relate to employment screening, landlord-tenant screening, bank accounts, background checks, subprime loans, car loans/car insurance, medical bills, utility payments, phone bill payments, retail returns, etc. The Federal Consumer Financial Protection Bureau maintains a helpful list of consumer reporting agencies you may use to monitor your financial health.
Credit reporting agencies include any company that compiles and sells credit reports. They are sometimes referred to as consumer reporting agencies or credit bureaus. Credit reporting companies gather information about your borrowing and repayment history from furnishers. This includes:
Lenders use this information to determine if a consumer will receive a loan and at what interest rate.
Credit reporting companies gather information from many data furnishers, which are any institution that provides financial information about a consumer. This includes lenders, debt collectors, and public records.
Most Americans are familiar with the concept of a credit score because it can play a pivotal role in a person’s life. This score is just one type of consumer report that summarizes a person’s creditworthiness. Depending on the business, a low credit score can prevent someone from receiving a loan or result in a high interest rate.
The FCRA contains clear regulations regarding consumer privacy. It permits credit reporting companies to provide credit reports only to users with a permissible purpose listed in the law. These agencies can only provide information about you to those with a valid need. This includes creditors, insurers, landlords, and related businesses. Additionally, employers must obtain consumer consent to view a person’s credit report.
According to a study by the Federal Trade Commission (FTC), one in five Americans has an error on at least one of their credit reports. Unfortunately, there are many common errors consumers encounter.
Credit reporting errors can arise from various sources, which can significantly impact your financial health. Here are some common causes:
It’s essential to check your credit reports frequently to ensure there are no errors. You can dispute false information with the reporting agency if you identify false information in your report. The company generally has 30 days to investigate and correct false or outdated data. A consumer must explain in writing what they think is incorrect and include any documentation to support that claim.
If errors in your credit report have led to negative consequences, you may have a case against the reporting agency. Deciding whether to take legal action involves considering several factors, such as the type and severity of the inaccurate information, the harm it has caused you, and how effective the correction process has been. Generally, FCRA lawsuits are filed when the mistakes are severe, the resulting damage is significant, the dispute resolution process is inadequate, or the errors remain uncorrected. An experienced FCRA attorney can best help you navigate a lawsuit. Maginnis Howard attorneys are prepared to handle all aspects on your behalf, including drafting complaints, communicating with reporting agencies, negotiating settlements, and even going to trial.
Your personal information should always be accurate and private. Unfortunately, many things can go wrong in a credit report or background check. We frequently assist clients dealing with these and similar issues:
Contact our intake staff for a free consultation if you are struggling with consumer reporting issues. We handle FCRA cases on a contingency basis, which means you don’t pay unless we recover something on your behalf. Our attorneys represent clients across the Carolinas from our Raleigh, Charlotte, and Fayetteville offices.
