If your rights have been violated under the Fair Credit Reporting Act (FCRA), you have legal recourse available, and our legal team is here to provide it. This Act is a federal law that regulates how credit reporting agencies, credit furnishers, and those who access credit reports can handle your personal data. As such, the following blog explores your rights in further detail and how our firm can help if your rights have been violated. If you’re looking to pursue a claim, please continue reading and contact a knowledgeable Los Angeles, California fraudulent credit reporting lawyer from LA Legal Solutions today.
What Is the Fair Credit Reporting Act?
The Fair Credit Reporting Act governs the behavior of consumer reporting agencies – also known as credit bureaus – and the businesses or individuals that report information to them when they compile your credit report. When determining whether you may receive credit, gain employment, or even rent certain places to live, landlords, employers, and others may look first at your credit report.
The FCRA is a federal law, meaning it applies to consumers across the nation, including California. Ultimately, this allows consumers the right to dispute incorrect information on their credit reports, limit who can access this information, and seek damages in the event of a violation.
Who Must Comply with the FCRA
- Consumer reporting agencies (TransUnion, Equifax, Experian)
- Debt collectors reporting accounts
- Banks and lenders furnishing data
- Landlords performing tenant screening
- Employers who conduct background checks
- Businesses that utilize consumer reports to make credit decisions
What Does the FCRA Require in California?
The FCRA has enacted strict laws regarding who can access consumer credit reports, how the information on these reports is verified, and what happens in the event an error is disputed.
Core Consumer Rights Under the FCRA
- The right to receive a free annual credit report
- The right to dispute incorrect or incomplete information
- The right to have disputes investigated in a timely manner
- The right to be notified if information in your report is used against you
- The right to limit access to your report to those with a permissible purpose only
Common FCRA Violations in Los Angeles That May Justify a Lawsuit
It’s important to understand that inaccurate consumer reporting errors alone are not always enough; the violation must generally involve failure to properly investigate disputes or correct errors. Additionally, it may also constitute a violation if false information is reported after notice is provided.
Examples of Actionable FCRA Violations
- Reporting debts that do not belong to you
- Failing to remedy errors after a formal dispute is filed
- Mixing your credit with another persons
- Failing to mark an account as “disputed”
- Failing to conduct a reasonable investigation into a dispute within the required timeframe
- Pulling credit without a permissible purpose
- Continuing to report inaccurate information after failed verification
- Reporting accounts discharged in bankruptcy as active
- Failing to remove duplicate accounts
- Reporting outdated negative information after the reporting period
What Damages Can You Recover for FCRA Violations?
If a credit reporting agency or furnisher violates your rights under the FCRA, you may be able to pursue compensation for the damages you have suffered.
A willful violation means that a company has knowingly violated the regulations or acted with reckless disregard for consumer rights, while a negligent violation occurs when a company fails to ue reasonable care to protect the rights of consumers under the FCRA, even if unintentionally.
Damages for Willful FCRA Violations
- Actual damages (no statutory cap on compensation)
- Statutory damages up to $1,000 per violation
- Punitive damages
- Attorney fees
Damages for Negligent FCRA Violations
- Actual damages
- Emotional distress
- Attorney fees and litigation costs
Are There Any Penalties For A Frivolous FCRA Lawsuit?
If you file any lawsuit or subsequent court papers in “bad faith or for purposes of harassment,” you may face penalties. If you file bad faith papers and lose, you might have to pay the other side’s attorney fees.
What Is the Deadline to File an FCRA Lawsuit in California?
The FCRA has a strict statute of limitations. As such, you must file a lawsuit:
- Within two years of discovering the violation, OR
- Within five years of the violation occurring, whichever occurs first
It’s important to understand that failure to file your lawsuit on time can result in a permanent bar against your claim, even if negligence and damages are obvious.
Contact Our Los Angeles Consumer Defense Firm
If you believe your rights under the FCRA were violated, it’s in your best interest to connect with the experienced team at Los Angeles Legal Solutions. Our firm is proud to represent consumers in and around Los Angeles County, including Encino, Glendale, and Pasadena. When you need legal representation, do not hesitate to contact our firm today.
