Debt collectors and creditors often furnish inaccurate information to credit reporting agencies. Even if the inaccuracy is something so simple as putting the wrong date of default, it may still have serious consequences when you apply for a new loan, line of credit, or even for certain professional licenses. Also, the date of default is what dictates how long the negative item will stay on your credit report, and if the date of default is being reported as more recently than what the default actually was, then the negative item will stay on your credit report for longer than it actually should.
DO NOT JUST IGNORE IT—ignoring the inaccuracies means they will be able to continue to mis-report the information, which may eventually hurt you in the future. Taking care of the inaccuracy now will help prevent future harm to you.
Both the Federal and California laws allow a consumer to sue the furnisher of information, and you may be entitled to receive any actual damages suffered from their inaccurate reporting, or up to $1,000.00 per violation under the Federal law or up to $5,000.00 per violation under the California laws, depending on what type of violation they have committed. More importantly, both statutes allow for you to recovery your attorney’s fees from those who violate the statute, which means we are able to take your case on a contingency basis and recovery of fees and costs the recoveries that we obtain for you.
HOWEVER, it is not as easy as you might think to sue the furnisher of information under the Federal laws for inaccurate reporting. One of the ways the U.S. Legislature has tried to help the business industry from frivolous lawsuits is that they only permit a private lawsuit if the furnisher of the information fails to conduct a reasonable investigation into disputed information after being notified by the credit reporting agency that you are disputing the inaccurate information.
YOU LODGING THE DISPUTE WITH THE FURNISHER ONLY DOES NOT TRIGGER CIVIL LIABILITY UNDER THE FEDERAL LAWS. Only if the furnisher receives a notice of dispute from a credit reporting agency does their failure to conduct a reasonable investigation into the dispute trigger liability for a civil lawsuit. If you only send the dispute to the furnisher and you do not dispute the inaccurate reporting with the credit reporting agency, then you cannot sue the furnisher under Federal law. See 15 U.S.C. 1681s-2(b).
You are also not able to sue the furnisher under Federal laws simply for supplying the inaccurate information to the credit reporting agency. You can only sue for their failure to conduct a reasonable investigation, as explained above. However, 15 U.S.C. 1681s-2(c) and (d) permit State and Federal officials to enforce the furnisher’s obligation to supply accurate information, and you should report any such inaccuracies to the Federal Trade Commission, the State Attorney General, and also lodge a dispute with the credit reporting agency to begin the process for triggering a civil lawsuit.
On the other hand, California laws are more favorable to the consumer. There is no obligation at all for the consumer to lodge a dispute with the credit reporting agency or the furnisher in order to trigger liability in a civil lawsuit for furnishing inaccurate information! See California Civil Code 1785.25(a). However, California laws could entitle you to receive punitive damages of up to $5,000 per violation if their violation was committed willfully (if they either knew or should have known of the inaccuracy of the information).
Although there are some hoops to jump through, here is the bottom line if any inaccurate information is being reported on your credit report:
File a complaint with State and Federal officials to enforce their authority upon the violator.
Lodge a dispute with the credit reporting agencies in order to trigger the civil lawsuit process under the Federal laws. If they fail to amend or remove the inaccurate information, then you may have a lawsuit under the Federal laws for their failure to conduct a reasonable investigation after being notified of a dispute. THIS DISPUTE MUST BE LODGED WITH THE CREDIT REPORTING AGENCIES.
Also lodge the dispute with the furnisher of the inaccurate information, because if they fail to amend or remove the inaccurate information then you may be entitled to punitive damages under the California laws for their willful violations.
KEEP COPIES OF ALL CORRESPONDENCE AS PROOF, AND SEND LETTERS VIA CERTIFIED MAIL AS PROOF OF THEIR RECEIPT, AND TAKE DETAILED NOTES OF EVERY EVENT. Then, call us for a free and confidential consultation to discuss how we can assist you in asserting your rights!
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A couple minutes into my first phone conversation with Jared and Bob, I knew I found the right team. I felt like I was talking with family. They never sugar-coated anything, but I never felt scared or worried because I had so much confidence in their experience, knowledge of the law, and professionalism. I can confidently recommend Jared Hartman and Bob Semnar without hesitation and wish them continued success down the road.
Bob is an excellent attorney. He has helped me resolve issues that I had thought would never get fixed. He is extremely knowledgeable about consumer rights and really does fight for the little guy. After years of trying to fix multiple errors and dealing with collection agencies that didn't bother to follow the rules even when I did, Bob was able to get everything fixed for me and forced these companies to follow the law.
Jared is an exceptional Lawyer. He handled all aspects of our case providing very good advise. He knew what needed to be done and did it. Without his diligence and guidence throughout the process we would have been totally lost. I can honestly give him my highest recommendation.