Most Michigan consumers assume credit bureaus carefully review their disputes. But this is very often not the case, and it is not surprising when really obvious credit report errors, even identity theft errors, are not removed from your credit report even after you submit detailed disputes and supporting documentation along with your credit disputes such as police reports and FTC identity theft affidavits.
 In reality, many rely credit bureaus on automated systems like e-OSCAR—which may violate the Fair Credit Reporting Act when the dispute process and investigation results in a failure to consider the consumer dispute or evidence submitted along with the dispute.

e-OSCAR is an automated system used by the major national credit reporting bureaus, including:

•  Experian
  
• Equifax
  
• TransUnion

Instead of reviewing your credit dispute and supporting documents, the credit bureaus:

•  Convert your dispute into a short descriptive code
  
• Send this descriptive code to the creditor
  
• Accept the creditor’s response and do not further investigate

The law requires that credit bureaus and furnishers perform a reasonable reinvestigation of your credit report dispute.
However, automated systems often:

• Ignore your evidence in favor of merely confirming that the information contained in the credit report matches the information in the furnisher or creditor's own systems (which is another way of saying the furnisher merely confirms that the inaccurate information also exists in the furnishers internal systems as well as your credit reports)
  
•  Skip meaningful review, such as a detailed review of your dispute and supporting documents and information
  
• Rubber-stamp responses

For example in the case of identity theft:
A consumer may submit supporting documents along with their dispute such as:

• Bank statements
  
• Identity theft affidavit
• Police report 

 
But the credit bureaus merely:

•  Send a generic code to the furnisher (creditor)
  
• Await verification or a “verified” response
  
• Keep reporting the error after verification

The failure to conduct a reasonable investigation is grounds for a potential lawsuit.

If your credit dispute was ignored or mishandled by the credit bureaus you may be entitled to compensation. We can review your case and help you consider your options.

 If you think the credit bureaus did not properly review your credit dispute:
Contact  us today using our contact form below and check out our identity theft information and identity theft resources page.
Attorney Nick Hadous is highly experienced in litigating FCRA cases.

Bankruptcy can impact your credit report in ways you may not understand. When you file for bankruptcy, it is reflected on your credit report and can stay there for up to ten years.  Some people believe bankruptcy credit reporting is a bad mark.  However, what bankruptcy does is eliminate debt when debts are discharged in bankruptcy. This means that the accounts discharged in bankruptcy should be reported with a zero balance making you a potentially more attractive candidate for credit in the future since your outstanding debt is reduced by the bankruptcy discharge.  While true that some lenders may view you as a higher risk borrower due to the bankruptcy on your record, other lenders will see you as less of a risk if you have income since you cannot file for bankruptcy again without waiting a certain number of years, and since there would not appear to be a line of creditors  in a race to the courthouse to sue you for old, discharged debts.

There are several things you can do to help re-establish and rebuild credit after bankruptcy, such as opening a secured credit account, paying new and future credit obligations on time,  ​or being added as an authorized used to a credit account that is in good standing. While bankruptcy can have a negative impact on your credit report in the short term, you can rebuild your credit if you take the right steps. 

As mentioned, bankruptcy can stay on your credit report for up to ten years. However, the impact of bankruptcy on your credit score can be minimized over time, especially if you take proactive steps to improve your credit. By demonstrating responsible financial behavior, you can show lenders that you are a reliable borrower.

One of the first steps you can take after filing bankruptcy to rebuild your credit is to review your credit report to ensure that all discharged debts are reported accurately.  If there are credit report errors on your credit report after filing bankruptcy, these can cause you to be denied credit.  Lenders may assume that you either engaged in fraud that prevented you from obtaining a discharge of that debt, or that you became delinquent on a new or existing debt after your bankruptcy discharge. 

There are several types of post-bankruptcy credit report errors to look out for such as:​

1. Discharged debts not reporting as discharged in bankruptcy or with a $0 balance: Debts that are discharged in bankruptcy should be reported on your credit report as “Discharged in Bankruptcy” (or similar language), and with a balance of $0. 
   
2. New collection accounts being reported for discharged debts: sometimes debts that are discharged in bankruptcy will be sold or assigned either before, during, or after the bankruptcy. This type of credit report error can occur when a collector reports the collection account as having been "opened" after the bankruptcy even though other reported account information reveals that the collection account pertains to a discharged debt.  
   
3. Charge-offs Reported After the Bankruptcy Filing or Bankruptcy Discharge: Sometimes creditors will report a charge-off after your bankruptcy.  Charge-offs typically occur when an account is 90-120 days or more delinquent and are more derogatory than an account that is merely delinquent, but not charged-off. This is another type of credit report error after bankruptcy.
   
4. Failure to Accurately Report Reaffirmed Accounts. When you reaffirm a debt during bankruptcy, you remain liable for the debt after the bankruptcy. Therefore, the reaffirmed debt should not be reported as discharged in bankruptcy and  payments made after the bankruptcy should be reflected on your credit report. 

The FCRA preempts some state laws regarding credit reporting lawsuits. See, e.g., 15 U.S.C. 1681t(b). 

However, under an interpretive rule by the CFPB, 87 FR 41042, state laws that are not “inconsistent” with the Fair Credit Reporting Act (FCRA) are generally not preempted by the FCRA. This might seem encouraging to plaintiffs at first glance, but whether a state law (e.g., state common law cause of action or state consumer protection causes of action) is consistent or inconsistent with the FCRA can cause considerable confusion/litigation when state law claims are asserted along with FCRA claims. 

However, in the context of credit reporting, one area that seems somewhat settled is where a consumer sues a furnisher under the FCRA and then also tries to assert state law causes of action (e.g., breach of contract, defamation) based on underlying conduct involving the furnisher’s reporting obligations.  The Sixth Circuit has held that the FCRA preempts state law claims regarding furnisher reporting obligations. Therefore, common law claims like breach of contract, defamation, etc. are typically dismissed.

• The FCRA “preempts all state law[] . . . causes of action concerning a furnisher's reporting of consumer credit information to consumer reporting agencies.” 

See Scott v. First Southern Nat. Bank, 936 F.3d 509, 521-22 (6th Cir. 2019) (dismissing the plaintiff's state claims for breach of the duty of good faith and fair dealing and tortious interference with contractual relationships).  See also Petronykoriak v. Equifax Info. Servs., 19-cv-10784, 10 (E.D. Mich. Aug. 13, 2021) (same). 

Litigants may therefore wish to focus their causes of action against furnishers under the FCRA (i.e., unreasonable investigation claims) where lawsuits concern inaccurate reporting of consumer information (e.g., credit reports, background check reports, or other reports containing consumer information as defined by the FCRA). 

Note: furnishers like banks and credit card companies are distinct from the consumer reporting agencies (CRAs) like Equifax/Experian/TransUnion to whom furnishers report consumer information. CRAs have broader duties under the FCRA and more types of claims are available against CRAs under the FCRA. However,  one might expect similar outcomes where claims concern a CRA's credit reporting procedures or its reinvestigation of disputes which are among the main types of claims in credit litigation.

Background check errors can be costly and seemingly come out of nowhere when you apply for a job or housing. Although background check errors and credit report errors can occur at any time, periodically reviewing your background check report and credit report for errors can help prevent background check errors or credit report errors from costing you a job or housing. 

Background check attorneys recommend reviewing your background check for errors when applying for a new job or your employer has requested your permission to perform a background check.

Before obtaining your background check report for employment to review for background check errors, you should understand the significance of background checks. Employers conduct background checks as part of the hiring process to ensure that they are making informed hiring decisions and to evaluate your suitability for the job which you are applying.

If you discovery any background check errors either before you apply for a job or during the application process, a background check lawyer can help you take immediate action such as disputing the background check errors with the screening company (known as a consumer reporting agency under the Fair Credit Reporting Act).

​One of the firsts steps you can take to obtain your background check report is to know and understand the type of background check being conducted by your potential employer. Depending on the position you are applying for, the background check may include criminal history background check, credit history check, prior employment verification, and verification of your education.  It is important to verify whether your background check may contain errors, especially criminal background check errors that can cause denial of employment or loss of employment.

​Once you are aware of the type of background check being conducted, you should request a copy of your background check report. There are many consumer reporting agencies that assemble and sell background check reports to prospective employers such as Checkr, Inc., GoodHire, HireRight, Intelius, and others.  You should review whether there are any background check errors. You can also request a copy of your background check from the employer or the third-party screening company that the employer hired to conduct the background check or paid for the background check report. 
If you find background check errors, are denied employment or lose your current employment because of background check errors, you should consider consulting a background check attorney.

Background check attorneys can help you understand your consumer rights if you were harmed by background check errors. The Fair Credit Reporting Act (FCRA) provides consumers with rights and remedies, and you may be able to recover damages for background check errors.  A background check lawyer will typically review the background check report errors with you and help you obtain evidence to dispute the background check errors and any other inaccuracies contained in the background check report.

​In some cases, you may encounter difficulties obtaining your background check report, particularly if the information is being withheld by the employer or the background screening company. In such cases, you should speak to a background check attorney about to ensure that your consumer rights are being upheld.

Credit lawyers play a pivotal role in safeguarding consumer rights by filing lawsuits under the Fair Credit Reporting Act for credit report errors. Lawsuits based on inaccurate credit reporting, identity theft credit report errors, and background check errors can occur before or after disputing your credit report. Credit attorneys can help empower consumers to enforce the protections afforded by the Fair Credit Reporting Act and other consumer protection statutes.

Credit attorneys typically focus on consumer protection laws like the Fair Credit Reporting Act (FCRA). The FCRA is a consumer protection statute that outline the rights and responsibilities of both consumers, consumer reporting agencies such as credit bureaus and background check reporting companies, and furnishers of tradeline information on your credit report such as banks, lenders, creditors, credit card companies, and debt collectors. When credit laws laws are violated, credit attorneys can step in to hold wrongdoers accountable in court and to seek just compensation for consumers.

Navigating credit disputes and the legal framework for protecting your rights under the FCRA can be daunting for the average consumer. By hiring a skilled credit attorney, consumers can benefit from the attorneys’ knowledge and experience disputing credit report errors and litigating common credit report errors and legal issues in court.  

There are many different types of legal claims and theories that encompass credit reporting disputes and credit lawsuits and these can exists in various contexts, such as credit reporting errors, identity theft credit report errors, and background check errors.  We will discuss some of the broad types of claims applicable to credit disputes and consumer reporting issues.

​Credit disputes can lead to lawsuits when a credit bureau fails to follow reasonable procedures to assure maximum possible accuracy of the reported consumer information contained in credit reports. This type of claim is appropriate when the consumer reporting agency follows unreasonable procedures or reports information from unreliable sources despite notice of the unreliability of the information.  This can lead to widespread credit report errors affecting many consumers. Your credit attorney can conduct discovery of the consumer reporting agency’s procedures during a lawsuit.  

Credit disputes can also lead to lawsuits when a credit bureau fails to conduct a reasonable reinvestigation of consumer disputes. Credit bureaus will typically forward consumer disputes to furnishers to verify the accuracy of the reported information.  However, the credit bureau is still required to conduct its own investigation especially where the consumer provides sufficient information demonstrating the inaccuracy, the credit bureau knows of the inaccuracy or can otherwise independently verify the consumer dispute, such as in post-bankruptcy credit reporting. Your credit reporting lawyer can conduct discovery of the reinvestigation that was done by the credit bureau, if any, during a lawsuit. This type of claim is appropriate when the consumer reporting agency fails to conduct a reasonable reinvestigation when the consumer disputes credit report information.

​Credit disputes can also lead to lawsuits when a furnisher fails to conduct a reasonable investigation of consumer disputes. A furnisher is an entity that reports consumer information to the credit bureaus.  Examples of furnishers include credit card companies, banks, mortgage lenders, collection agencies, and other creditors. The FCRA requires consumers to dispute directly with the credit bureaus, which forwards the dispute to the furnisher.  Thus, to be able to sue a furnisher under the FCRA it is necessary to dispute credit report errors through the credit bureau first.  A dispute directly to the furnisher instead of the credit bureau does not suffice. Furnishers are required to conduct a reasonable investigation of consumer disputes and either verify the credit reporting, correct the inaccuracy in the credit report, or delete the inaccuracy in the credit report. Your credit lawyer can conduct discovery of the investigation, if any, that was done by the furnisher during a lawsuit.  This type of credit reporting claim is appropriate when the furnisher fails to conduct a reasonable investigation of a consumer dispute of credit report information.

Yes. Damages can be recoverable in credit report lawsuits, including after disputing credit report errors that do not result in the correction of inaccuracies and errors in your credit report. Credit attorneys play a crucial role in helping gather and present evidence of harm in credit lawsuits to help consumers recover damages for harmful credit reporting errors.
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There are several categories of damages that may be available in credit lawsuits under the Fair Credit Reporting Act.

Actual damages include losses you incurred that were directly caused by an FCRA violation.  Actual damages can include financial loss as well as emotional distress, humiliation, medical injury and other physical or non-physical harm so long as the injury is real and sufficiently serious.  
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Actual damages can be awarded for negligent or willful violations of the FCRA. Your credit attorney can help you gather evidence of actual damages and losses to help pursue damages for credit report errors.

Statutory damages may also be available for credit report errors if the consumer reporting agency or credit bureau commits a “willful” violation of the FCRA. Statutory damages range from $100 to $1,000 per violation.  Statutory damages are not the same as actual damages and may be awarded even in the absence of actual damages. However, as noted, the threshold requires a showing of a willful violation, which is higher than the standard for recovering actual damages, which only requires a negligent violation of the FCRA.

Attorneys’ fees may also be recovered in FCRA actions.  The FCRA contains a fee-shifting provision which allows consumers to recover their reasonable attorneys’ fees.  Fee-shifting statutes are important because these permit greater access to consumer attorneys who can handle your case on a contingent fee basis because of the recoverability of attorneys’ fees. If attorneys’ fees were unavailable, consumers would have a much harder time hiring consumer attorneys unless the consumer was willing to pay the lawyer out of their own pocket. Congress understood this and therefore included fee-shifting provisions in the FCRA to encourage consumer attorneys to represent consumers in FCRA lawsuits.  

In some cases, punitive damages may be awarded. Punitive damages may be awarded in FCRA cases when a furnisher or consumer reporting agency willfully violates the FCRA. Willful violations occur when there is intentional or reckless conduct, which demonstrates a disregard for the rights of consumers. Credit attorneys can develop this type of evidence during the discovery phase of FCRA lawsuits. 
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The amount of punitive damages can vary, and depends on the evidence and harm. There is no limit to the amount of punitive damages that may be awarded in FCRA actions. Your credit attorney

Don't let costly credit report errors, identity theft, or background check errors go unchecked. We fight for consumers and help consumers seek damages for violations of consumer rights. We take on the credit bureaus, background check reporting companies, lenders, credit card companies, as well as any abusive debt collectors or collection agencies that harass consumers.  

Attorney Nick Hadous is a seasoned consumer attorney licensed in Michigan, Arizona, and California with a track record of success in various types of FCRA cases.  He has litigated consumer law issues in trial courts and has been successful in numerous hotly contested appeals of FCRA cases in the Ninth Circuit.  We have helped consumers dispute identity theft credit report errors, and correct credit report errors through removal of inaccurate information caused by identity theft and other common credit reporting errors. 

Mr. Hadous currently serves on the Litigation Advisory Board for the Institute of Continuing Legal Education (ICLE) where he is a content contributor and author in consumer protection lawsuits.

If you believe you are a victim of identity theft or if your credit report contains inaccurate information, please contact our office using our contact form to schedule a free phone or Zoom consultation.  
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