Common Fair Credit Reporting Act Violations 

 Posted on January 04, 2025 in Bankruptcy

The old saying that "cash is king" may be true. Nevertheless, it is your credit score that arguably has the most significant impact on your financial opportunities. Calculated based on information on your credit report, your credit score can affect everything from your ability to rent an apartment to your power to purchase a home or car.

That is why any mistake on a credit report can have serious repercussions on your life. The role of the Fair Credit Reporting Act (FCRA) is to protect you from any false or mistaken information on your credit report. If there are issues with your credit report, an experienced North Carolina bankruptcy attorney can advise you on the ways the FCRA can protect you.  

What Is the FCRA?

The FCRA is a federal law that protects the information collected by the credit reporting agencies (also called credit bureaus) that compile your credit history. It governs how the credit bureaus may collect and access your information. Its goal is to ensure the accuracy, fairness, and privacy of the personal information the credit bureaus collect.

What Are Some Common FCRA Violations?

Inaccurate Reporting

The FCRA requires that information reported on a credit report be free of mistakes such as inaccurate balances, mistaken late payments and identity mixups.

Not Updating Information 

Credit bureaus must keep consumer credit information up to date. Failing to do so is a violation of the FCRA. Examples of this type of violation include reporting old debts as new, continuing to include bankruptcy information after it is no longer legally meant to be included, and reporting a debt account as open when it has been closed.

Privacy Violations 

Credit reporting agencies may not release any credit information other than to authorized persons or organizations for a "permissible purpose." Usually, creditors, landlords, and employers may access your credit report for a "permissible purpose." However, releasing private credit information without cause is a violation of the FCRA.

Not Investigating Disputes

You have the right to dispute an item on your credit report that you believe is inaccurate and the FCRA requires that the credit bureaus make a good-faith effort to resolve the issue. Not doing so can constitute a violation of the FCRA.

What Can You Do If You Suspect the FCRA Violated Your Rights?

If you believe that a credit bureau has violated your rights you may be able to sue them for damages. You can also report a violation by filing a complaint with the Consumer Financial Protection Bureau (CFPB).

Contact a Charlotte, NC Bankruptcy Attorney

Your credit report can have a huge difference in your financial health. That is why it is crucial to protect its accuracy. If you believe that your credit report contains inaccurate information, the experienced Huntersville, NC Fair Credit Reporting Act attorney can advise you on your rights under the FCRA. Contact Blossom Law PLLC at 704-256-7766 for a free consultation today.