Tag: Credit Reporting Errors

The Fair Credit Reporting Act, responsibilities and remedies for consumer reporting violations

Decisions based on consumer reports of credit and financial histories directly influence the rates consumers pay for utilities, loans, insurance, and chances of being hired by employers. Approvals of rental applications, professional licensing and personal relationships when individual’s daily lives are affected by the collection of credit-based decisions and judgments.[i]  According to a 2015 study by the U.S. Federal Trade Commission (FTC), 23 percent of consumer reports contain inaccurate information.[ii] The Fair Credit Reporting Act (FCRA) is the consumer reporting law regulating the collection, dissemination and the use of consumer credit information.[iii] The FCRA is enforced by the FTC, the Consumer Financial Protection Bureau (CFPB) and through private party lawsuits.

The FCRA regulates consumer reports, “any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (a) credit or insurance to be used primarily for personal, family, or household purposes; (b) employment purposes; or (c) any other purpose authorized under 604 [§ 1681b].[iv]

Responsibilities and remedies for violations of the FCRA apply to users of consumer reports, furnishers of information, employee background checks and the activity of the consumer reporting agencies.

TransUnion, Equifax and Experian are the three major credit reporting agencies that collect and disseminate consumer credit information from furnishers who share reports with users, all defined by the FCRA. Additionally, there are dozens of nationwide specialty consumer reporting agencies that focus on specific information. The consumer reporting agencies must keep procedures to provide the most accurate information about a consumer and provide that consumer with information about them, to verify that the consumer data is accurate. When consumers dispute and receive removals of negative credit information, that information may not be listed on any future reports without notifying the consumer within five days. There is also a limit of how long negative information may be listed on a consumer report. Most negative information must be removed within seven years, and 10 years when bankruptcy information is reported.

Creditors, defined by the FCRA are furnishers of consumer reporting information, with financial relationships with the consumer, such as credit card companies, auto finance and mortgage banking institutions. The Act requires creditors to provide complete and accurate information to the credit reporting agencies, and the creditors must investigate consumer disputes they receive from credit reporting agencies. Creditors have 30 days to respond to a consumer dispute and must verify, correct or delete the information on the consumer’s report. If a creditor reports negative information about a consumer to a consumer-reporting agency, the creditor must first provide the consumer with notice, within one month, and the notice is usually language about the creditor reporting negative information, which is located on monthly statements and communications.

Users of consumer reports are individuals and organizations with access to consumer reports who use the information contained in consumer reports to review background information to make decisions on insuring or lending money or credit to a consumer. A consumer report user may only obtain consumer reports for purposes identified as permissible under the Act, and that user must notify the consumer when an adverse decision or action is based on the review of the consumer report. When notifying the consumer, a report is required by the Act to identify the company or credit-reporting agency providing the reported information, so that the consumer may verify or contest the information in their report.

Employer conducting employment background checks require written consent of an applicant who must be told how the employer wishes to use and not misuse the information they obtain. If an employer decides against a hiring decision, they must furnish a copy of the credit report used and notify the applicant of their opportunity to dispute the information contained in their credit report before the employer makes their final adverse decision.[v]

Remedies for FCRA violations include actual and statutory damages, attorney’s fees and court costs as well as punitive damages.

It can be difficult determining the value of actual damages suffered by a consumer, when their consumer report information or rights are compromised under the FCRA, and statutory damages are allowed to identify a damage amount to award to a victim of a violation. In addition to the actual or statutory damage allowance, the attorney’s fees incurred by the individual plaintiff’s attorney are recoverable against the offender, as well as court costs incurred in litigating the claims for violations.

When a FCRA violation is done willfully, punitive damages may also be awarded to the individual or class of individuals in class action, with the intent in punishing and deterring an offender from continuing to violate the FCRA. Punitive damage awards can be significant, worth millions of dollars, and are often reported in the news which is good for consumer awareness and can urge more consumers to pay attention to credit and consumer reports.

There are many definitions, rules and exceptions set forth in the FCRA and the law interpreting its application in a variety of situations. An experienced consumer rights attorney working frequently with FCRA clients and cases can help violated consumers enforce their rights.

The Zamparo Law Group, P.C. is a consumer protection law and litigation firm that files lawsuits against violators of the FCRA and federal and state consumer protection laws. Teaching consumers how to spot consumer rights violations is important because informed consumers can stand up to those who violate the law.

To learn more about consumer protection law and the Zamparo Law Group, please visit the firm’s website. You may also ask for a free case review. The Zamparo Law Group is connected on social media, please follow us and share our resources we share on our Facebook page. You may call the Zamparo Law Group with any questions by dialing (224) 875-3202.

 

[i] Forbes, A Bad Credit Score Affects a Lot More Than Credit, by Heather Struck, Jul. 20, 2011.

[ii] Report to Congress Under Section 319 of the Fair and Accurate Transactions Act of 2003.

[iii] Fair Credit Reporting Act, 15 U.S.C. § 1681

[iv] §603 – 15 U.S.C. § 1681a, Definitions; rules of construction.

[v] See Federal Trade Commission, Consumer Information, Employee Background Checks.

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Roger Zamparo Jr. Attorney

Consumer Protection Podcast: Roger Zamparo walks us through an issue spotting exercise in a variety of consumer protection laws, state and federal.

Roger Zamparo recently presented an overview of consumer protection law and litigation on the podcast hosted by the Illinois Professional Licensing Consultants. The program titled, Spotting consumer protection issues and litigation with Roger Zamparo, highlights sources of consumer protection law and several examples of how unfair and deceptive business practices affect consumers.

Zamparo Law Group

The Zamparo Law Group defends consumers from deceptive and unfair business practices, abusive collection tactics, identity theft, and a host of other anti-consumer behaviors.

Topics covered in this podcast interviewclick here to listen now!

  • What is consumer protection law and how do attorneys help you recover from harm?
  • Does an injured victim pay attorneys fees or collect at the end, like in personal injury law?
  • What are the sources of law identifying conduct resulting in a consumer protection violation?
  • A brief overview of fair debt collection laws and what types of wrongs to watch for.
  • How the fair credit rules work and what the credit reporting agencies should do to protect you.
  • About the Driver Privacy Protection Act and concern about motor vehicle records.
  • What the Telephone Consumer Protection Act requires of telemarketers.

Roger Zamparo received a B.A. from Ohio University and his J.D. from The John Marshall Law School (where he is currently serves as a member of the Board of Trustees). In his 35-year litigation practice, he has represented individuals and corporations in both state and federal courts. He has concentrated on several areas, including consumer law and legal malpractice. Please contact the Illinois Professional Licensing Consultants at (224) 847-3202 to be connected with Roger Zamparo if you have a consumer protection question or need to consult on your legal matter.

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Zamparo Law Group

Credit Reporting Errors

Credit reports, or consumer reports, have broad-reaching implications that touch on many aspects of our daily lives. We recommend that everyone check their credit reports at least once a year by visiting www.annualcreditreport.com, the only truly free source for the most accurate information the main consumer reporting agencies maintain in your file.

The consumer protection attorneys of the Zamparo Law Group, P.C. can guide you through the process of disputing inaccurate information or helping you address identity theft, making sure your credit reports accurately reflect your credit history.

Contact Us Today If You Have…

Been denied credit or had to pay higher interest rates because of inaccuracies on your credit report.
Been turned down for a job because of inaccuracies on your credit report.
Discovered inaccurate information on your credit report.

Contact Us Today If a Consumer Reporting Agency (Credit Bureau) Has…

Confused you with someone else.
Reported inaccurate information about you in your credit report.

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