The Fair Credit Reporting Act (FCRA) protects consumers by regulating how their credit information is collected, maintained, and shared. When violations occur, they can severely affect your financial standing and reputation. Understanding how to report FCRA violations is vital to maintaining control over your personal data.

If you suspect an error or unfair practice related to your credit report or background check, reporting the violation promptly can prevent further harm. This article explains how to report FCRA violations and take necessary actions.

What Is the Fair Credit Reporting Act (FCRA)?

The FCRA is a federal law designed to ensure that consumers are treated fairly in the credit reporting process. First enacted in 1970, this law governs the practices of credit bureaus and helps ensure that they report accurate and up-to-date information about an individual’s credit history. The FCRA grants consumers several rights, including the right to dispute errors on their credit report, access their credit information, and seek corrections if inaccuracies exist.

When a violation occurs under the FCRA, it can result in significant damage to your credit and even lead to wrongful denials of credit, loans, and housing. The law is structured to protect consumers, but it requires proactive action to address potential violations.

Types of FCRA Violations You Can Report

There are various FCRA violations that can occur, and it is important to understand when and how you can report them. These violations include:

Inaccurate Credit Reporting: If credit bureaus report incorrect information on your credit report, such as outdated debts or inaccurate account status, you can report this as a violation of the FCRA.
Failure to Investigate Disputes: If you file a dispute with a credit bureau regarding inaccurate information, and they do not investigate the issue within the required time frame, this is a violation.
Unlawful Access of Your Credit Report: The FCRA restricts who can access your credit report. Unauthorized access is a violation of your rights under the law.

Understanding these violations is essential for taking the correct steps to report and address them. If any of these violations apply to your situation, you may be entitled to legal action.

Steps to Report FCRA Violations

1. Review Your Credit Report

Before reporting a Fair Credit Act violation, it is important to thoroughly review your credit report. Errors or omissions in your credit report could be grounds for a violation. Make sure to check for discrepancies, including incorrect personal information, outdated accounts, or misreported payments. Each of the three major credit bureaus, Equifax, Experian, and TransUnion provides you with the right to regularly obtain a free credit report. Regularly monitoring your credit helps you identify violations early.

2. Dispute the Violation with the Credit Bureau

If you find an error or violation on your credit report, the next step is to dispute the violation directly with the credit bureau. Disputing the error can lead to its correction. The FCRA typically mandates that the credit bureau investigate the issue within 30 days.

To file a dispute, you can:

Submit a formal dispute through the credit bureau’s online system or by mailing a written request.
Provide evidence supporting your claim, such as bank statements, payment receipts, or communication with the creditor.
Keep track of the dispute until you receive a response, which should include an explanation of the results.

If the credit bureau fails to resolve your dispute within the allotted time or mishandles your case, you may proceed with further action.

3. Notify the Furnisher of Information

If a credit report violation involves a company or organization that provided incorrect information to the credit bureaus (known as the furnisher of information), you can notify them directly. Furnishers are normally required to investigate and correct any disputed data they report to the credit bureaus. Failing to do so may be a violation of the FCRA.

When reaching out to the furnisher:

Document all communication: Keep records of all phone calls, emails, and letters exchanged with the furnisher.
Provide supporting documents: Include any relevant proof of your claim, such as receipts, payment confirmations, or written agreements.

If the furnisher refuses to investigate or correct the issue, it may be necessary to escalate the situation to legal action.

Filing a Complaint with the Consumer Financial Protection Bureau (CFPB)

If the credit bureau or furnisher fails to resolve your FCRA dispute, you can escalate the issue by filing a complaint with the Consumer Financial Protection Bureau (CFPB). The CFPB helps protect consumers from unfair practices and assists with resolving disputes.

To file a complaint:

Visit the CFPB website and follow the instructions to submit your complaint.
Provide detailed information about the violation, including supporting documents and the steps you have taken so far.
Once your complaint is filed, the CFPB should review it and take appropriate action to resolve the complaint.

If the CFPB’s involvement does not resolve the issue, it may be time to consider legal action.

Legal Action for FCRA Violations

In cases where FCRA violations are not resolved through disputes or complaints, you may need to take legal action. The FCRA provides consumers with the right to file lawsuits if their rights are violated. A credit report litigation attorney can help you navigate the legal process and pursue damages for any harm caused by the violation.

When considering legal action:

Document everything: Keep detailed records of the violations, including communications, disputes, and responses from the credit bureaus and furnishers.
Consult an attorney: A skilled attorney who knows about FCRA violations can guide you through the litigation process and advocate for your rights.

Legal action can lead to compensation for damages, and in some cases, punitive damages if the violation was intentional or reckless.

How Sherman & Ticchio PLLC Can Help

At Sherman & Ticchio PLLC, we are committed to protecting your rights under the FCRA. If you are dealing with FCRA violations or have been harmed by inaccurate credit reports or background checks, our team is here to help. We offer credit report litigation and background check litigation, and we can assist you in addressing FCRA violations.

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