Credit Reporting Errors

August 7, 2017
 
 

The Risks of a Bad Credit Report:

An inaccurate credit report can force a consumer to pay a debt that she does not owe. It can inflict unfair interest, penalties, and late charges on her, And it may result in the denial of a loan, an apartment, or even a job. A layperson can correct some errors in her credit report herself, but others will need the help of an attorney to be remedied.

Debt collectors who misreport information about a person’s creditworthiness so that her credit rating is damaged, may violate the federal Fair Debt Collection Practices Act and Fair Credit Reporting Act, and also New York’s Deceptive Practices Act, General Business Law sec. 349.

A consumer has the right to challenge a false item on her credit report, and if the challenge is valid, the credit bureau or the creditor must investigate the claim. If they fail to do that, the consumer may have the right to sue for damages.

 

Correcting Credit-Report Errors, Both Unintentional and Deliberate

A person should check her credit report for errors at least once a year. That can be done by requesting a free credit report, at AnnualCreditReport.com, from Equifax. Experian, and TransUnion: a consumer is allowed one free report per year from each of those credit-reporting agencies. A person who does that may find some errors in her report . Banks, credit-card companies, and other lenders furnish billions of pieces of information to those agencies each year, so some inaccuracies are to be expected.

But sometimes false information is deliberately planted in a credit report. Debt collectors and data furnishers (the companies who submit information to credit reporting agencies) may modify a date or payment information, to have more time to file a lawsuit. The activity is illegal, but difficult for a consumer to detect.

Attorney Stephen A. Katz is available to correct errors in a consumer’s credit report. If the errors were placed in the report deliberately and the consumer has been victimized by credit-reporting misconduct, attorney Katz can sue for damages. He provides a free initial consultation.

Attorney Katz can be reached at (800) 251-3529