CREDIT REPORTING ERRORS

Credit reporting errors are discrepancies or inaccuracies found in credit reports, which can range from minor mistakes to severe misrepresentations. A credit report is a critical document that records an individual's credit history, and it is used by creditors to assess a person’s creditworthiness. Thus, any error in this report can have a significant impact on an individual's financial life.

Types of Credit Reporting Errors

• Incorrect Personal Information: This includes errors in your name, address, Social Security number, or date of birth. Although they might seem insignificant, these errors can mix your credit history with someone else's or lead to other inaccuracies.

• Account Errors: These can include someone else’s account appearing on your credit report (mixed file), an account that you did not open, or inaccuracies in the account status such as indicating a closed account as open or vice versa. Account status errors may also include wrong current balance, credit limit, or payment history.

• Duplicate Reporting: This occurs when the same debt or account is reported more than once. It can make it seem like you have more debts than you actually do.

• Data Management Errors: These result from errors in entering or managing data by the credit reporting agency. For example, an error might occur during the recording of payment histories or updating account balances.

• Fraudulent Accounts: If someone steals your identity and opens accounts in your name, these fraudulent accounts can appear on your credit report.

• Outdated Information: Negative information such as late payments, bankruptcies, or collections should fall off your credit report after a certain number of years. If such information remains, it's an error.

Damages and Injuries Caused by Credit Reporting Errors

• Lower Credit Score: Most credit reporting errors can lower your credit score. This score is essential for lenders to determine if you qualify for loans or credit cards and at what interest rates.

• Loan Rejections: With a lower credit score caused by errors on your report, lenders might see you as a high-risk borrower and reject your loan application.

• Higher Interest Rates: If lenders consider you risky but still approve your loan, they might do so at a higher interest rate to mitigate their risk.

• Lost Job Opportunities: Some employers check credit reports during the hiring process. A poor credit report could mean missing out on job opportunities.

• Housing Issues: Landlords often check credit reports of prospective tenants. Errors on your credit report could cause a landlord to deny your rental application.

• Higher Insurance Premiums: Insurance companies sometimes use credit-based insurance scores to determine premiums. A lower score due to errors can lead to higher insurance premiums.

Correcting Credit Reporting Errors

• Review Your Credit Reports: Regularly reviewing your credit reports will help you identify any errors. You can request a free credit report from each of the three major credit reporting agencies - Equifax, Experian, and TransUnion - once a year through AnnualCreditReport.com.

• Dispute the Error with the Credit Reporting Agency: If you find an error, file a dispute with the credit reporting agency. Send a letter that clearly identifies each item you dispute, explain why you dispute the information, and request that it be removed or corrected. Include copies of documents that support your position.

• Dispute the Error with the Information Provider: In addition to disputing the error with the credit reporting agency, you can also dispute it directly with the company that provided the information to the agency (such as your bank or credit card company). 

• Regular Follow Up: Keep records of all communications and follow up with the credit reporting agency to make sure the error is corrected. The agency typically has 30 days to investigate the dispute.

• Add a Statement of Dispute: If the credit reporting agency does not resolve the error, you can ask them to include a statement of the dispute in your file and in future reports.

• Seek Legal Help: If the credit reporting agency and the information provider do not correct the error, you may seek legal recourse under the Fair Credit Reporting Act (FCRA). This could involve filing a complaint with the Consumer Financial Protection Bureau or contacting an attorney.

Credit reporting errors can have far-reaching consequences on an individual’s financial well-being. It is imperative to regularly monitor your credit reports and take immediate action if you discover any discrepancies. Be diligent in your dispute process and do not hesitate to seek legal help if necessary. Being proactive in managing your credit report can save you from the damages caused by credit reporting errors and ensure that your credit history is an accurate reflection of your financial behavior.

Snable Stevenson & Silva Can Help You to Recover

Snable Stevenson & Silva has an arsenal of tools and resources to assist clients in recovering damages for injuries sustained due to credit reporting errors. It’s essential to understand that the consequences of credit reporting errors can be extensive, affecting loan approvals, interest rates, employment opportunities, and more.

Initial Consultation and Case Assessment

The first step involves understanding the intricacies of your case. During the initial consultation, attorneys from Snable Stevenson & Silva will listen to the details of your credit reporting issue. We will assess the credit reports, gather preliminary information, and evaluate if the error has legal grounds for recovery of damages. This step is critical to outline the subsequent course of action.

In-depth Investigation

Once our firm takes your case, the attorneys will conduct an in-depth investigation. We will help you obtain credit reports from all major credit bureaus, scrutinize the documents for errors, and gather evidence to prove that the error is not your fault. This may include communication records with credit reporting agencies, documents that prove the inaccuracy, etc.

Liaising with Credit Reporting Agencies

Snable Stevenson & Silva will communicate and negotiate with the credit reporting agencies on your behalf. Our firm’s experienced attorneys understand the legal jargon and tactics that these agencies might employ. We can thus effectively represent your interests, ensuring that you do not unknowingly jeopardize your case by saying something that could be used against you.

Ensuring Compliance with Legal Procedures

The Fair Credit Reporting Act (FCRA) outlines specific procedures and rights for individuals disputing errors in their credit reports. Our law firm ensures that all communication and disputes are in compliance with the FCRA. This includes ensuring that disputes are filed within the stipulated time frame, and all required documentation is presented correctly.

Documentation and Communication

Our law firm will help you draft and send dispute letters to credit reporting agencies and the information providers, such as banks or credit card companies. These letters must be carefully worded and supported with the necessary documents to build a strong case.

Monitoring Credit Reports

Even after the dispute is filed, our law firm will monitor your credit reports to verify if the errors are rectified. If the credit reporting agencies fail to correct the error, Snable Stevenson & Silva will help you take further legal steps, including adding a statement of dispute to your credit report.

Legal Representation in Court

If negotiations with the credit reporting agency are unsuccessful, or if the damages from the credit reporting error are substantial, it may be necessary to file a lawsuit. Snable Stevenson & Silva will represent you in court, ensuring that your case is presented with compelling arguments and robust evidence. Our litigation experience can be crucial in pursuing compensation for financial losses, emotional distress, and, where applicable, punitive damages.

Credit reporting errors can have a severe impact on one’s life. The law firm of Snable Stevenson & Silva can offer comprehensive legal assistance to not only correct errors but also recover damages for any injury sustained due to such errors. Through a combination of legal experience, negotiation skills, and a thorough knowledge of the FCRA, our firm can be instrumental in defending your rights and ensuring a favorable resolution.

Contact our Birmingham, Alabama Consumer Advocacy Lawyers Today for Legal Help

Are you or your family impacted by an error on your credit report? Contact Snable Stevenson & Silva for immediate legal assistance and advice. You might be eligible for compensation. Our qualified Alabama consumer advocacy lawyers can help you determine the best course of legal action and help to get you on a path to financial recovery.

We offer a free case evaluation and consultation. Contact our consumer advocacy law office in Birmingham, Alabama to schedule yours today. There’s often a limited amount of time to act, so give us a call to get started today.