Finding false information included on your credit report can be frustrating. However, when you suffer actual damages as a result of the error by the reporting agency or a lender, it’s important to understand that you are likely entitled to compensation. The following blog explores actual damages in further detail and the laws in place to protect consumers. Additionally, you’ll discover how a San Diego County credit reporting error lawyer can assist you through these matters.
What Laws Are in Place to Protect Me as a Consumer?
As a consumer, understanding the laws that are in place to help protect you from unfair or false credit reporting is imperative. Generally, one of the most important protections is the Fair Credit Reporting Act (FCRA). This law regulates how credit reporting agencies can use your information, ensures accuracy, and holds agencies responsible for the inclusion of false information. This law includes provisions on damages that consumers harmed by false or unfair credit reporting are entitled to.
What Are Actual Damages?
Actual damages are in place to help grant consumers compensation for any quantifiable monetary losses they’ve suffered. These are also called compensatory damages because they represent losses that the victim has endured. For example, a car accident victim can receive money for the cost of medical expenses because of the negligent driver.
The same applies to those who have suffered losses due to incorrect or fraudulent information on their credit report. For example, if you are denied a loan, are a victim of unfair wage garnishments, or are charged an incorrect interest rate due to false information on your credit report, these constitute special damages. This is because you suffered economically because of the inclusion of false information on your credit report. However, if you are awarded actual damages, you may also find that you can fight for general, or non-economic damages. These represent any subjective losses like emotional distress or humiliation, as these do not have quantifiable amounts associated with them.
As such, if you are the victim of incorrect credit reporting, you can fight for the damages you’ve endured, along with other losses. In addition to actual damages, you may receive statutory damages. These are penalties imposed by the courts to hold the negligent party responsible for violating the laws to protect consumers.
Unfortunately, many consumers assume that mistakes on their credit reports are a part of life. While mistakes happen, you should not be left to bear the financial burden of someone else’s mistakes. That’s why you must connect with an experienced attorney who can assist you through these complex issues. At Barthel Legal, we understand how frustrating it can be to suffer because of another person’s negligence, which is why we’re here to help. Connect with us today to learn more about these matters and how our firm can fight for you.
