
As a citizen, you can be held liable for several errors, from running a red light to failing to pay your taxes on time. As such, when there is a mistake on your credit report, understanding who can be held liable is critical. Not only do credit errors impact your score and subsequent finances, but in some instances, you can face lawsuits as a result of the negligence of others. If this reflects your circumstances, you’ll want to keep reading to learn who can face liability for credit reporting errors and why it’s in your best interest to work with a San Diego County credit reporting error lawyer to receive the justice you deserve.
What Credit Errors Are Common?
Understanding the most common errors that can appear on your credit report is critical to ensuring you can take swift action for any discrepancies you may notice on your report.
Generally, credit reporting errors are divided into two categories. The first are mistakes regarding personal information. This includes a name misspelling, incorrect date of birth, an outdated address, or a false social security number. In some instances, you’ll also find that your credit report is mixed with that of a person with a similar name to you. Generally, these do not directly impact your credit score, but you’ll find that you may be denied loans as a result, especially if the information on your loan application does not match the information the creditor sees on your report.
The next kind of error is generally more serious, as it directly impacts your credit score. These are account errors. Typically, this includes things like listing incorrect payment dates, including duplicate accounts, incorrectly reporting late payments, or reporting accounts as delinquent when they are not. These can have a serious impact on your credit score.
Who Assumes Liability for Credit Reporting Mistakes?
It’s important to understand that, as a consumer, you have several rights under the Fair Credit Reporting Act (FCRA). Generally, you’ll want to dispute the inclusion of incorrect information on your account directly with the credit reporting agency. This can help have the false information removed from your account and restore your credit score to what it should be.
However, if you incurred damages because of the inclusion of false information in your report, it’s important to understand that you may be entitled to damages. Typically, the credit reporting agency and the credit furnisher may face liability if they knowingly provided and included incorrect information on your credit report. If you file a dispute and include proof that the information on the report is incorrect and the agency and furnisher do not take steps to rectify the situation, you can recover statutory damages of up to $1,000 per FCRA violation, as well as actual and punitive damages.
As you can see, these matters can be incredibly complicated to navigate, which is why it’s in your best interest to connect with an experienced consumer defense attorney from Barthel Legal who can help you navigate these complicated situations. Our firm understands how difficult these matters can be, which is why we will do everything in our power to help you recover the compensation you deserve. Connect with us today if you are experiencing issues with a creditor.