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By Law Offices of Jibrael S. Hindi

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May 01, 2022

| Credit

Watch Out for These 4 Common Fair Credit Reporting Act (FCRA) Violations

A consumer’s financial future is greatly affected by what is in their credit report. Keeping close tabs on the rise and fall of the score may be important for everyone. Your credit report may dictate whether you qualify for certain important financial opportunities like renting or buying property, qualifying for a loan, being approved for a credit card, or even landing a job. This makes it essential that your credit report is error-free and reflects your current financial situation.

Credit reports may still be riddled with errors, and the consequences can be disastrous for consumers. If you are being affected by errors on your credit report, seek the experienced help of The Law Offices of Jibrael S. Hindi to protect your consumer rights and assist you in taking the necessary steps to pursue compensation for any violations that may have resulted in substantial losses.

The Fair Credit Reporting Act Protects Consumers

The Fair Credit Reporting Act was established in 1970 when Congress realized the weight of credit information. This act was set up to protect consumers and to regulate the use and distribution of credit data. This law empowers consumers to know what is in their credit reports and access knowledge of the information credit rating agencies implement to define credit scores. The FCRA also necessitates that consumers are given the details of where reporting agencies got the information and how to contact the issuer in cases of credit, insurance, or employment denial.

The largest credit reporting agencies are Equifax, Experian, and TransUnion, and are lawfully obligated to report accurate consumer information. Given the amount of consumer credit reports that are kept track of by these entities, errors inevitably occur. The FCRA allows for consumers to detect errors in their credit reports and file complaints. General violations of the FCRA include:

  • Failing to update records
  • Reporting expired debts as new
  • Failing to follow guidelines for settling disputes
  • Pulling your report for an impermissible purpose
  • Failing to send a notice about your credit report or score violates the FCRA
  • Reporting agencies providing information to unauthorized persons or businesses
  • Reporting a closed account as active
  • Creditors disclosing inaccurate financial information about you to reporting agencies
  • Reporting agencies mixing up one person’s information with another’s because of a similar name or social security number

If you suspect an error on your credit report and it is hindering your financial wellbeing, speak to an experienced Florida FCRA attorney for support and fierce advocacy in resolving the violation.

4 Frequently Experienced Violations of the Fair Credit Reporting Act

There are a few frequently experienced FCRA violations that impact a consumer’s financial wellbeing. Some of these violations include:

1. Reporting Old Information on Your Credit Report

When your financial circumstances change, your credit reporting must reflect those changes. If your report is showing old, settled, or other inaccurate information, that is a violation of the Fair Credit Reporting Act. Below are some examples of how this type of violation may occur:

  • The credit reporting agency is reporting a debt as charged-off when it was paid off or settled in the past.
  • The credit reporting agency is flagging late payments when your payments are timely.
  • The credit reporting agency is showing old debts as new ones.
  • The credit reporting agency is showing an active account after it was closed by a consumer.
  • The credit reporting agency failed to report a discharged debt in bankruptcy.
  • The credit reporting agency is reporting information that is more than seven years old.
  • The credit reporting agency is showing inaccurate balances due.
  • The credit reporting agency failed to have a procedure for you to report identity theft.

If you suspect old information is being reported on your credit report and it is damaging your financial wellbeing, speak to a skilled Florida FCRA attorney for legal guidance and fierce advocacy in resolving the violation.

2. Mixing Up Your Financial Information With Another Consumer

This violation occurs when consumers share a similar or same name as well as if they happen to have similar social security numbers. This can be a careless mistake made by the reporting agency and can wreak havoc on your credit score and financial opportunities.

3. The Credit Reporting Agency Fails to Follow Proper Complaint Procedure

When submitting a complaint about an error on your credit report, the credit reporting agency is required to follow proper procedures in investigating the claim, correcting inaccuracies, and removing false or disputed debt. When agencies fail to follow procedures, it is a violation of the FCRA.

4. Impermissible Credit Pulls by Credit Reporting Agencies

When an employer, creditor, landlord, or other entity pulls your credit report without your permission, that is a violation of the FCRA. The FCRA limits who may be able to access your information and the reasons they may be able to do so. This is because the number of inquiries affects your credit score, and it is important for the consumer to limit the amount of credit pulling that is initiated. If this violation occurs, you may be able to recover compensation for damages.

Damages You May Recover for FCRA Violations

The Fair Credit Report Act is necessary to maintain a consumer’s financial wellbeing, so when FCRA violations occur, the consumer may be able to pursue a claim for damages. The extent of your compensation is greatly dependent on the type of violation that occurred and whether it was voluntary or negligent.

Speak to a seasoned Florida FCRA attorney for an assessment of your claim and legal guidance regarding the best course of action to take. The Law Offices of Jibrael S. Hindi may help you take the necessary steps in order to obtain compensation for losses and rebuild your credit.

Speak With an Experienced Florida FCRA Attorney at The Law Offices of Jibrael S. Hindi

At The Law Offices of Jibrael S. Hindi, we are passionate about protecting your rights as a consumer. If you have been negatively impacted by a violation on your credit report, speak to an experienced FCRA attorney for dedicated and client-oriented representation that may help you in achieving the most favorable outcome for your claim.

If you believe that a credit reporting agency may have violated your rights, The Law Offices of Jibrael S. Hindi are prepared to take the necessary steps in order to pursue the compensation you deserve for your losses. Our firm takes cases on a contingency basis whereby the firm does not get paid unless a recovery is obtained on your behalf. To schedule a free consultation with an FCRA attorney, call us today at (844) 542-7235 or complete our contact form.