Common FCRA Violations That Lead to Lawsuits

Common FCRA Violations That Lead to Lawsuits

FCRA Lawsuits are on the rise

You may have a case if a credit bureau:
 
1. Reports Accounts from Identity Theft

•  Credit cards you never opened
• Loans taken out in your name
• Fraudulent collections

 
This is one of the strongest types of FCRA cases
 
 2. Fails to Fix Errors After You Dispute Them
 
If you submitted proof and the credit bureau:

• Ignored your documentation
• Verified false information
• Continued reporting inaccuracies on your credit report

 This can be an FCRA violation

3. Reports Inaccurate Payment History

• Showing “late payments” when you paid on time
• Misreporting balances
•  Reporting accounts that should be removed

4. Conducts a “Fake” or "Superficial" Investigation

Many credit bureaus rely on automated systems instead of real investigations.
 
If the credit bureaus:

•   Just “parrot” the creditor’s response
• Don’t review your documents

 You may be entitled to damages under the FCRA
 

Can You Sue Credit Bureaus for Identity Theft?

Yes—and identify theft credit report cases are often  very strong
 
If identity theft is on your credit report and the bureaus:

• Fail to remove fraudulent or identity theft accounts
• Fail to block fraudulent or identity theft accounts
  
•  Continue reporting fraudulent or identity theft accounts after disputes

You can sue under the FCRA and recover potential damages.
 

Potential Compensation - Damages for Identity Theft Accounts on Credit Reports

• Actual damages caused by identity theft on your credit reports (credit denials, higher interest rates)
• Emotional distress damages
• Statutory damages (up to $1,000 per violation)
•  Punitive damages (for willful violations)
• Attorney’s fees (they pay, not you in the event of a judgment)

​How to Sue a Credit Bureau for Reporting Identity Theft Accounts and Errors on Your Credit Reports (Step-by-Step)

 Step 1: Dispute the Error in Writing
 
Send a dispute letter with:

• Proof of identity theft or error
  
• Supporting documents such as an FTC Identity Theft Affidavit, police report, and other supporting materials such as address or other records.

 
 Step 2: Wait for Their Investigation (30 Days)
 
The credit bureaus must:
 
* Investigate the identity theft dispute and consider your supporting materials
* Verify or correct the inaccurate information, which is ordinarily the fraudulent or identity theft account information that appears on the credit report. Unfortunately, in some instances, the investigation entails little more than merely verifying that the personal identifying information such as name, date of birth, and social security matches what the furnisher has on file in its systems.
 
 Step 3: If The Credit Bureaus or Furnisher Fail to Reasonably Investigate - You May Have a Case
 
For example, if the credit bureaus or furnisher

•  Ignore or disregard your evidence of identity theft
  
• Continue reporting false information such as the identity theft accounts.

 You may file a lawsuit in federal court.

Why IDENTITY THEFT CREDIT REPORT Cases Are Powerful

 Credit bureaus are required by law to protect your financial reputation.
When credit bureaus fail to correct identity theft credit report errors:

• Your credit score may drop
• You may be denied credit, loans, housing, or jobs
• Your financial future is impacted
• You may suffer attendant emotional distress caused by the uncertainty and harm to your credit and reputation.

That’s why courts and the FCRA allow you to sue for damages or significant financial recovery

Do You Need a Lawyer to Sue a Credit Bureau?

 Technically no—but realistically, yes.
 
FCRA cases involve:

•   Federal laws
• Complex legal standards concerning pleadings, and evidentiary proof 
• Aggressive defense attorneys

 
The good news?
 Most FCRA lawyers (including our firm) work on a contingency basis, meaning there are typically:

•  No upfront costs
• We only recover attorneys' fees if you win or recovery money through a settlement or judgment

Why Choose Hadous & Co. for identity theft credit reporting issues?

 At Hadous & Co., we focus on:

•  Credit report litigation
• Identity theft cases
• Consumer protection law

 We know how to:

•  Help you submit detailed disputes to the bureaus to substantiate your identity theft credit report errors
• Build strong, credible FCRA claims
• Prove emotional distress damages
• Take on major credit bureaus

​We are experienced litigators with extensive experience in trial and appellate courts.  Although we try to achieve early resolutions, if your case goes to trial, we have the experience and track record to fight for you at trial.  And unlike many attorneys, we do not shy away from trying cases to a jury.
 

Free Case Review – Find Out If You Have a Claim

 
If your credit report contains:

• Accounts you don’t recognize
• Identity theft
• Errors that won’t go away

 You may have an FCRA lawsuit and be entitled to compensation.
Contact us today for a free consultation (no obligation)
​Visit us today at https://www.hadousco.com