New York City Creditor Reporting Errors
A credit report is a collection of information about your financial history brought together through a credit reporting bureau. The bureaus gather most of the information that they need to create these reports using information from creditors, so if a creditor makes a mistake in reporting a late payment, a closed account, or other error, it can have a damaging effect on a final credit report.
The attorneys at Schlanger Law Group LLP help people who are suffering because of New York City creditor reporting errors every day. Where the credit reporting agencies and creditors have refused to fix the problem, we use the powerful protections granted to consumers under state and federal law to bring cases in federal court on behalf of victims of common credit reporting errors.
Interactions Between Creditors and Credit Reporting Bureaus
A credit report is, to a large extent, a collaborative effort between credit reporting agencies and the parties that lend money or provide goods and services on credit. These lenders can be the companies that provide financing for a car or a home, banks that issue personal loans, credit card companies, or utility companies.
The lenders provide information to the credit reporting agencies concerning a person’s borrowing history, their record of making payments, and their overall financial health. The credit reporting bureaus then combine this information into a single report that allows all potential lenders to determine the risk involved with lending a person money.
In a sense, both consumers and other lenders rely on the information on a credit report to be accurate. Consumers rely on an accurate score to let lenders know that they are likely to repay a loan, while the lenders use this score to determine interest rates as well as whether they will offer a loan in the first place. Accordingly, an error during creditor reporting can have grave consequences for both New York City borrowers and lenders..
Common Errors on the Part of Creditors
Credit reporting agencies have a legal obligation to put in place policies and procedures designed to create accurate credit reports about consumers. In addition, the Fair Credit Reporting Act (FCRA) requires credit reporting bureaus to conduct a reasonable investigation about any problems that a consumer can bring to their attention and to fix any information that can’t be confirmed. Part of this investigation process that the credit bureau must conduct is checking with the creditor as to whether the information the creditor is reporting is accurate. The FCRA imposes an obligation on creditors not to falsely verify incorrect information.
Perhaps the most common form of error is a report of non-payment. Any non-payment or late payment would appear as a poor or adverse mark on a credit report and would, of course, affect a person’s overall credit score.
Insidious activities such as identity theft can lead to accounts being open without a consumer’s knowledge. Inaccurate information concerning a social security number or legal name on a report can lead to a consumer being confused with another person, leading to what is known as a “mixed file.”
Many consumers learn of fraud and identity theft on their accounts only when they check their credit report. Sometimes, this is because the thief is having billing statements sent elsewhere. Sometimes, the identity thief lives with the victim and has access to the mail or relevant email accounts. Other times, the consumer simply doesn’t check their bills as promptly as one would hope. Seasoned legal counsel could help individuals in New York City litigate a credit reporting bureau’s errors on a report.
Seek Assistance with Correcting a New York City Creditor Reporting Error
Maintaining your credit score is crucial to your financial health, so it can be equally important to ensure that creditors who provide information about you to the credit reporting bureaus have accurate data. New York City creditor reporting errors that stem from mistakes on a creditor’s end concerning non-payment or the availability of lines of credit can lead to an inaccurate credit score, as can instances of identity theft or fraud that evade a lender’s screening processes. A New York City attorney with experience litigating against the credit reporting agencies and the creditors who provide the agencies with incorrect information can help consumers rectify fraud and identity theft that are impacting their credit reports, and can force credit agencies and lenders to meet their fair credit reporting obligations.