Under the Fair Credit Reporting Act (15U.SC. 1681 and following):
you may sue a credit reporting agency for negligent or willful noncompliance within two years after you discover the harmful behavior or within five years after the harmful behavior occurs, whichever is sooner.
Credit report errors are common. 1 out of 2 clients have credit report violations and don’t know it. Creditors, Collection Agencies, and Credit Reporting Agencies are mandated to utilize compliance codes when they report your data. That data is often times recorded inaccurately causing lower credit scores and more automated lender denials.
Other Credit Repair Companies have no idea how we do it or even aware of these violations. They are just paper factories disputing negative information and unaware of how to facilitate a financial settlement paid to you for damages for Credit Reporting Errors while also repairing bad credit.
A recent study by the Federal Trade Center (“FTC”) found that 40 million Americans had errors on their credit reports and 20 million had serious errors on their reports. But only one in five consumers had an error that was corrected by a credit reporting agency after it was disputed. Some of the credit report errors that we see and help correct on a recurring basis include:
Stale credit information on credit reports, especially old medical debt.
Incorrectly reported judgments or tax liens, including paid judgments and liens that are not reported as satisfied.
Incorrect payment histories, which happens often with mortgages and student loans.
Incorrectly reported bankruptcy information: debts not being reported as discharged in bankruptcy or falsely reported as being included in bankruptcy.
Identity theft issues, which often involve theft by relatives, friends, and ex’s.
Impermissible credit report requests
for credit reports that you did not authorize. This is always a potential problem when you apply for a car loan. Each impermissible hard credit inquiry
could decrease your credit score by up to five points.
Credit information that is not yours and belongs to someone else, including relatives like parents or siblings, spouses and ex-spouses, and complete unknown strangers.
Medical Violations- Consequences include denied claims; pro longing claims, incorrect coding. These are just some of the typical violations that can turn unpaid medical claims into medical collections.
Auto Repossession Violation – this violation can cause serious problems for a consumer, many lenders and car dealerships violate those consumer protections.
Balance After Discharge – discharge releases the debtor from liability for certain debts, so the debtor is no longer legally required to pay the balance. The discharge also prohibits creditors from collecting discharged debts in any manner, including through lawsuits, demand letters, and telephone calls.
Collection Agency adding additional fees – Charges can be added, but NOT by the Collection Agency. It is a violation of the law to add any fees to your bill.
Statute of Limitations Violations – Disregarding a consumers statute of limitations can cause serious damage. Stopping it sooner than later can help decrease damages.
Inaccurately Reporting Date of First Delinquency– The Fair Credit Reporting Act defines the date of first delinquency as the date at which you first became late and then never brought the account current before the creditor decides to charge it off or send it to collections.
Furnisher Not Notifying CRA’s of Direct Dispute – Because the information that furnishers provide to consumer reporting agencies (CRAs) can have significant consequences for consumers, Congress created consumer protections for furnished information.
Utility Credit Report Violation – is a credit reporting agency that maintains data, such as payment and account history, reported by member service providers in the telecommunications, pay TV, and utility industries.
Tenant Screening Violations – all background screening agencies must follow reasonable procedures to ensure that the background reports that they provide to their customers are as accurate as possible.
Mixed Credit Files – A mixed credit file occurs whenever a CRA inadvertently comingles the credit histories of two different individuals into a single report. The result is a credit report that contains information belonging to two different consumers, bundled together as if those two people were the same person.
These and other errors could be costing you thousands of dollars by causing you to be charged more for credit, to pay higher insurance rates, to be denied credit, or to lose a job or an apartment. If you have or suspect that you have errors on your credit report, please call or email us today for a free credit report review and consultation.