As a consumer in the United States, it can often feel like companies have the upper hand or an unfair advantage. However, it’s critical to understand that there are a number of laws in place designed to protect you and other consumers from unfair, predatory, and abusive practices. Unfortunately, despite the laws in place, companies may still attempt to take advantage of consumers. This is often seen in violations of the Fair Credit Reporting Act (FCRA), which can cause considerable issues for consumers. As such, understanding when an FCRA violation is negligent and willful is crucial to seeking justice for any issues you’ve suffered as a result. The following blog explores what you should know about these matters, including the importance of working with a San Diego County credit reporting error lawyer to assist you through these matters.
What Is the FCRA and What Function Does It Serve?
The Fair Credit Reporting Act (FCRA) is a federal law that regulates consumer information. As such, any credit reporting agency or furnisher must ensure that information is fair, accurate, and private. In addition, this law dictates who can access consumer credit, and how this information is used for loans, housing, and employment.
Some of the primary rights and protections under this law include the ability to dispute the inclusion of inaccurate or fraudulent information, limiting when and who can access your credit report, and notification if you are denied based on information on your report.
When Can an FCRA Violation be Considered Willful or Negligent?
In some instances, the rights and protections guaranteed to consumers under the FCRA are violated. If these violations are willful or negligent, you may be entitled to compensation as per the FCRA.
Generally, a willful violation occurs when a company knowingly and intentionally disregards the rules and regulations imposed by the FCRA. This is a conscious violation. For example, if a company continues to report incorrect information despite filing multiple disputes or accessing your crest without authorization or a permissible purpose, this is considered a willful violation.
A negligent violation, on the other hand, occurs when a reporting agency or furnisher does not take reasonable care to ensure FCRA compliance, even if there is no intent to disregard the rules. For example, if a credit reporting agency incorrectly enters your data or fails to update credit information, this would be considered a negligent violation as opposed to a willful violation.
What Are Common Examples of Violations?
If you are a consumer who has been impacted by an FCRA violation, it’s critical to understand your options. If the violation is willful, you have the right to statutory damages of up to $1,000 per violation, even if no harm is suffered. In addition, the court may impose punitive damages for companies that act with intentional or reckless disregard, as well as court fees and legal costs for the victim.
If the violations you suffered were deemed negligent, you are entitled to compensation for the damages you’ve endured, such as lost employment opportunities, compensation for high interest rates imposed due to errors, and emotional damages.
Fighting for the compensation you deserve when a company fails to uphold your legal rights can be incredibly frustrating, which is why it’s in your best interest to connect with an experienced attorney with Barthel Legal. Our team understands how complex these matters can be, which is why we are dedicated to assisting consumers who have been treated unfairly. When you need help, contact our team today.
