Fair Credit Reporting Act and Improper Use of Personal Information

The information provided by the Fair Credit Reporting Act is not for misuse or misreporting of credit details to those researching the individual person. However, sometimes, violations of the FCRA occur and harm the individual by lowering the credit score or leading to a denial or credit after the misuse occurs.

Creditors of all forms use the credit report created for each individual to understand and map the behavior of a person’s repayment of credit and purchases. Through this, loans, liens and credit accounts become available. However, when the credit report does not supply positive information, these sources may dry up and ensure that the person receives no benefits until the score increase to a manageable level. Violations of the credit score and report are often devastating to the person and could affect his or her future in many different ways. It is because of these issues that pursuing action against the perpetrators becomes important.

The Fair Credit Reporting Act Details

To ensure that each citizen in the Unites States receives protections against negative effects upon his or her credit score and report, an Act was put in place for these issues. The FCRA governs over the activity and behavior of various consumer agencies that report credit such as credit bureaus. The interactions of businesses, companies, entities and individuals reflect the options available for all when compared to the credit score and report for each. For home purposes, the credit information may lead to a mortgage for housing purchases or a loan when money become tight. Obtaining certain jobs and even buying a car are all possible based on the credit details of a person.

Violations of the FCRA Explained

One particularly important violation occurs when creditors or agencies do not supply the most up to date details. This is most affective to the individual when there is a debt discharged through payments or in bankruptcy. This changes the circumstances for the person, and his or her credit will reflect the alterations. While the bankruptcy causes the credit score to face negative impact, the discharge of the debt is a positive outcome from the situation. If another debt becomes new or reports as new when it is old, this is a violation of the FCRA.

When accounts are no longer open and voluntarily closed by the individual, this is a violation. The agency needs to ensure that any accounts that could negatively affect the credit score are up to date. Details need to remain current. Anything older than seven years or a decade should go through a purge. This is especially important for instances of bankruptcy and civil judgments against the person. Some agencies, companies or individuals are not able to sue the person through credit scores or reports when they go through the process of certain chapters of bankruptcy.

Seeking a Lawsuit

When the individual faces economic or financial injury due to the violations of a credit reporting agency or other credit authority, it is sometimes possible to seek litigation in these incidents. If the company suffers an attack through hacking or revealed personal details as has occurred previously, the affected individual may need to contact a lawyer to determine what to do next. It is possible through legal representation that the person may seek a settlement through the agency, institution or company. Many may seek to end the matter quickly through a negotiated monetary payment. However, if this is not possible, the case may go to court.

In litigation, the plaintiff has the burden of proving his or her case. This usually leads to the gathering of evidence, contacting witnesses, joining a class action lawsuit or hiring an expert witness about the matter. Additionally, the plaintiff may need to prove that there is a duty of care owed to him which was in breach, and that the breach caused the injury. It is possible to hold the agency accountable for actions that lead to economic or financial problems through unfair or unreasonable credit reporting practices. With enough evidence, it is possible to attempt a successful lawsuit against the other party.

Legal Support in the FCRA Violation

While a settlement outside of the courts is the best outcome with as much compensation as is reasonable, this is not always an option. Hiring a lawyer may provide the best possible chances for the potential for success, and a legal representative will work hard to try for a positive outcome.

Provided by HG.org

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer.
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