New York City Credit Report Error Damages
Federal law requires credit reporting agencies to have policies and procedures in place designed to produce accurate credit reports to consumers and potential lenders. A credit report is a collection of a person’s lending, payment, and accounts history, and inaccurate financial data can cause substantial consequences for a consumer.
A credit agency must conduct a reasonable investigation of any known errors that are brought to their attention by consumers. Unfortunately, credit bureaus regularly fail to do so. New York City consumers’ credit report error damages can vary, ranging from loan denials, higher interest rates, missed credit opportunities, decreases in available credit, and even denial of employment. In addition, the credit agencies’ failure to clean up credit reporting errors can cause significant emotional damages. Working with a skilled consumer defense lawyer from the Schlanger Law Group, LLP can make a big difference in evaluating your damages, determining appropriate legal remedies, and understanding your potential recovery.
Remedies for Negligent Credit Reporting
The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to create and implement policies and procedures that are designed to produce accurate credit reports. This law also allows consumers to contest inaccuracies on their reports and demand corrections.
However, many disputes get lost in credit reporting agencies’ bureaucracies or are denied because of slipshod and cursory “investigations”.
Where the credit reporting agencies’ misconduct is due to negligence, a New York City consumer with damages stemming from the types of credit reporting errors described above is entitled, under the FCRA, to compensation for any losses resulting from the credit bureaus’ negligence. For example, if a credit reporting company fails to properly investigate a credit reporting error of a consumer regarding a dispute over the accuracy of a late payment and this results in the consumer receiving a higher interest rate on a loan, the increased cost of the loan constitutes damages.
Damages for a Willful Violation
A violation of the FCRA is considered willful when the credit reporting agency was reckless in allowing a mistake to remain on a record. Consumers may prove willful violations by cataloging their correspondence with the agency as well as providing proof of a failure to fix an acknowledged error.
The FCRA allows consumers, in addition to their actual damages, to demand up to $1000 for each willful violation without having to prove the extent of their losses or even that a violation affected their finances at all.
Let an Attorney Help You Calculate New York City Credit Report Error Damages
If you are a New York City consumer and have incurred credit report error damages, consulting an experienced Fair Credit Reporting Act attorney to assess your case can be the difference between getting compensated for your losses and getting nothing. Call our firm today for a case evaluation.