Unfortunately, credit errors can have a serious impact on your finances. As such, it’s important to understand that in some instances, you may be eligible to recover compensation for damages incurred due to failure to remedy errors. Keep reading to learn who can be held liable for damages caused by credit errors and why working with a Los Angeles, California credit report lawyer is imperative to fighting for the justice you deserve in these matters.
How Do Credit Errors Happen?
Despite the importance of credit reports and scores, it’s incredibly common for errors to plague consumers. As such, understanding how these happen and what to look for can help you quickly identify issues before they cause too much trouble.
Generally, issues are the result of human error. When credit furnishers, like your bank or lender, send information to the credit reporting agencies, they may submit the wrong information. On the other hand, they may send the right information, and the credit reporting agency can make an error when entering the information into their system.
Typically, mistakes impact one of two areas. The first can impact the personal information on your report, like your name, address, date of birth, and social security number. While these do not directly have an impact on your credit score, these errors can result in you being denied loans, as the information on your application may not match what’s on your credit report.
The next kind of errors that are common impact the account information on your report. This includes incorrectly reporting an account as delinquent, listing false late or missed payments, including a closed account as open, or listing the incorrect outstanding balance. All of these errors can have a direct impact on your credit score, which can lead to issues securing loans and even housing.
Who Can Be Liable Credit Errors That Cause Damages?
In general, when you find errors on your credit report, the first thing you must do is file a dispute with the reporting agency to have the incorrect information remedied. If the furnished supplied the information incorrectly, you should also file a dispute with them directly to have the information corrected. Once you file the dispute, the agencies will have a limited amount of time to investigate and correct the error.
If the agencies do not respond to the dispute or decide that the information listed is correct despite filing a formal claim showing why the information is incorrect, you can then file a claim to help recover the compensation you deserve for the errors. If you can show that the mistake was willful or intentional, you may be entitled to compensation under the Fair Credit Reporting Act (FCRA) in addition to actual damages sustained as a result.
If you are the victim of credit errors on your report, understanding your rights is critical. At Los Angeles Legal Solutions, our dedicated team will do everything possible to help you recover the compensation you deserve while helping to remedy any errors in your report. Connect with us today to learn how we can assist you during these challenging times.
