The Fair Credit Reporting Act, commonly called the FCRA, is a federal law that regulates how credit bureaus, background-screening companies, and businesses that furnish consumer information collect, investigate, and report that information. When inaccurate information remains on a consumer report after notice of a problem, the law may provide a claim against the responsible company.
Fowkes & Hasanbasic represents consumers throughout Florida in cases involving inaccurate credit reports, mixed files, identity theft, improper reinvestigations, unauthorized inquiries, and employment or tenant-screening errors. We evaluate FCRA matters without charge, and clients pay no out-of-pocket attorney’s fees to retain our firm for an accepted FCRA case.
For a free case review, call (727) 500-1010.
Contents
Do You Have an FCRA Claim?
You may have an FCRA claim when a consumer reporting agency or information furnisher fails to comply with a specific legal duty and that failure causes harm. A credit-report error alone does not automatically establish liability. The relevant questions include what was inaccurate, which company received notice, how it investigated, what it reported afterward, and how the reporting affected you.
What Does the FCRA Require?
The FCRA imposes different duties on different participants in the consumer-reporting system.
Credit bureaus and consumer reporting agencies
Consumer reporting agencies must follow reasonable procedures designed to assure maximum possible accuracy under 15 U.S.C. § 1681e(b). After receiving a qualifying dispute, a consumer reporting agency must generally conduct a reasonable reinvestigation under 15 U.S.C. § 1681i.
Banks, lenders, debt collectors, and other furnishers
A company that supplies information to a consumer reporting agency is commonly called a furnisher. After a credit bureau sends a furnisher notice of a consumer’s dispute, the furnisher has investigation and reporting duties under 15 U.S.C. § 1681s-2(b). Whether a private furnisher claim exists depends on the dispute path and the facts; a direct complaint to the furnisher does not necessarily trigger the same private claim.
Companies that obtain consumer reports
A business generally must have a permissible purpose to obtain a consumer report. The permissible purposes are listed in 15 U.S.C. § 1681b. Written authorization is required in some settings, but not every lawful credit inquiry depends on written authorization. The legal issue is whether a permissible purpose existed for the particular report.
Common FCRA Problems We Evaluate
Inaccurate credit reporting
Examples include accounts that do not belong to the consumer, incorrect balances, false late-payment histories, duplicate accounts, discharged debts reported inaccurately, and closed accounts reported with an incorrect status. A successful claim generally requires more than identifying an error; the evidence must connect the inaccuracy to a failure by a particular defendant and to resulting harm.
Credit report errors after bankruptcy discharge
A bankruptcy discharge does not automatically require an account to disappear from a credit report. However, post-discharge reporting may be inaccurate or materially misleading when it misstates the balance, payment status, delinquency, personal liability, or other account information. These cases require comparison of the bankruptcy petition, schedules, discharge order, account history, disputes, and post-dispute reports. Learn more about credit report errors after bankruptcy discharge.
Mixed credit files
A mixed file occurs when a consumer reporting agency places another person’s information in your file. Similar names, Social Security numbers, dates of birth, addresses, or other identifiers can contribute to matching errors. These cases may involve repeated disputes, conflicting identifying information, and evidence that the bureau’s matching procedures were inadequate.
Identity-theft accounts
Identity-theft victims may use the blocking process in 15 U.S.C. § 1681c-2. A consumer generally submits proof of identity, an identity-theft report, and identification of the fraudulent information. The CFPB explains that a credit reporting company generally must block qualifying identity-theft information within four business days after receiving the required materials. See the CFPB’s identity-theft guidance.
Inadequate dispute investigations
A credit bureau cannot necessarily satisfy the FCRA by mechanically forwarding a dispute and repeating the furnisher’s response. The reasonableness of an investigation depends on the nature of the dispute, the information supplied, the reliability of the source, and the steps taken to resolve the problem.
Reinsertion of deleted information
When information deleted through a reinvestigation is later reinserted, the FCRA imposes certification and notice requirements. Reinsertion cases require careful review of the deletion, the source of the reinserted information, and any notice sent to the consumer.
Employment and tenant-screening errors
The FCRA also governs many employment and tenant-screening reports. These cases can involve incorrect criminal records, another person’s history, obsolete information, false eviction data, or failures involving required notices and authorizations.
Choose the Issue That Best Matches Your Report
- Credit Report Errors: inaccurate balances, payment histories, account ownership, or status information
- Credit Errors After Bankruptcy: discharged accounts reported with an inaccurate balance, payment status, delinquency, or personal liability
- Mixed Credit Files: another consumer’s accounts or identifying information in your file
- Identity Theft: fraudulent accounts, collections, or other unauthorized activity
- Unauthorized Inquiries: a company obtained your report without a permissible purpose
- Furnisher Investigation Failures: a bank, lender, or collector failed to reasonably investigate a bureau dispute
- Reinserted Information: information returned after deletion without compliance with the FCRA
- Employment Screening Errors: inaccurate background information affected a job opportunity
- Tenant Screening Errors: inaccurate eviction, criminal, or rental information affected housing
What Should You Do After Finding a Credit Report Error?
- Save the complete report. Preserve the report showing the error, not only a screenshot of one tradeline.
- Identify who reported the information. Note the credit bureau, furnisher, account number, dates, status, balance, and specific factual error.
- Gather supporting records. Useful records may include account statements, payment confirmations, identity-theft reports, court records, bankruptcy schedules and discharge orders, denial letters, and prior dispute results.
- Send a focused dispute. Explain precisely what is inaccurate and why. Include relevant supporting records and retain proof of delivery.
- Preserve every response. Save investigation results, updated reports, letters, emails, envelopes, and any notation that the information was “verified.”
- Document the consequences. Keep credit-denial or adverse-action notices, loan terms, housing or employment communications, additional costs, and contemporaneous records of emotional distress.
The CFPB recommends disputing an error with both the credit reporting company and the company that supplied the information. See How do I dispute an error on my credit report?
What We Examine When Evaluating an FCRA Case
In our experience, the strongest evaluation begins with the complete reporting and dispute history. We examine:
- Whether the challenged information is factually or legally misleading
- Which consumer reporting agency displayed it
- Which company furnished it
- Exactly what each dispute said and documented
- Whether the bureau forwarded the substance of the dispute
- How the bureau and furnisher responded
- Whether the information changed, disappeared, or returned
- Whether the same error appeared across multiple reporting periods
- What credit, employment, housing, financial, or emotional harm followed
A conclusory dispute may make the underlying problem harder to evaluate. A dispute supported by the documents that directly establish the error gives the investigating company a clearer opportunity to identify and correct the problem.
Why “Verified as Accurate” Does Not End the Analysis
An investigation result may state that information was “verified,” “updated,” or that it “meets FCRA requirements.” Those phrases do not reveal what evidence was reviewed or what investigative steps were taken. We compare the dispute, supporting documents, post-dispute reporting, and the explanation supplied by the bureau or furnisher to determine whether further investigation is warranted.
Damages Available Under the FCRA
Available remedies depend on the violation, the defendant’s state of mind, causation, and the evidence.
- Negligent noncompliance: Under 15 U.S.C. § 1681o, a consumer may recover actual damages caused by negligent noncompliance, along with costs and reasonable attorney’s fees when the consumer prevails.
- Willful noncompliance: Under 15 U.S.C. § 1681n, available relief may include actual damages or statutory damages of $100 to $1,000, punitive damages, costs, and reasonable attorney’s fees.
Potential actual damages can include credit denials, less favorable credit terms, lost employment or housing opportunities, out-of-pocket losses, and emotional distress when supported by the facts and evidence. No particular result is guaranteed.
How Long Do You Have to Bring an FCRA Claim?
Under 15 U.S.C. § 1681p, an action generally must be filed by the earlier of two years after discovery of the violation or five years after the violation occurred. Determining when a claim accrued can be fact-specific, so consumers should not delay seeking legal advice.
Frequently Asked Questions
Do I have to dispute before filing an FCRA lawsuit?
It depends on the claim. A dispute through a consumer reporting agency is generally necessary before a consumer may bring a private claim based on a furnisher’s duties under § 1681s-2(b). Other FCRA claims may involve different requirements. The defendant, legal duty, notice, and factual history must be examined.
Does an inaccurate credit report automatically establish an FCRA violation?
No. Inaccuracy is often an essential issue, but liability also depends on the statutory duty, the responsible defendant, the reasonableness of its procedures or investigation, causation, and the available evidence.
Is every hard inquiry without written permission illegal?
No. The FCRA recognizes several permissible purposes for obtaining a consumer report, and not all depend on written permission. An inquiry may violate the FCRA when the user lacked a permissible purpose under § 1681b.
How long does a credit bureau have to investigate?
The FCRA generally provides a 30-day reinvestigation period, subject to statutory provisions that can affect the deadline. The deadline and the adequacy of the investigation are separate questions.
Can an identity-theft victim request a block instead of using an ordinary dispute?
Yes. Section 1681c-2 establishes a blocking procedure for qualifying identity-theft information when the consumer supplies the required identity, identity-theft, and item-identification materials.
Can emotional distress be recovered?
Emotional distress may qualify as actual damages when caused by an actionable violation and supported by credible evidence. The availability and value of damages depend on the individual facts.
Who pays the attorney’s fees?
A prevailing consumer may recover reasonable attorney’s fees and costs under the FCRA. Fowkes & Hasanbasic does not charge clients out-of-pocket attorney’s fees to retain the firm for an accepted FCRA case. Fee arrangements are explained in the written representation agreement.
How common are credit-report errors?
A congressionally mandated Federal Trade Commission study published in 2013 found that one in five participants identified an error on at least one of their three credit reports. Five percent had errors that could result in less favorable credit terms. The study involved 1,001 participants and 2,968 credit reports. See the FTC’s report summary.
Why Choose Fowkes & Hasanbasic?
- Florida consumer-law attorneys with substantial FCRA litigation experience
- Representation available throughout Florida
- Direct attorney evaluation of potential claims
- No charge for the initial case review
- No out-of-pocket attorney’s fees to retain the firm for an accepted FCRA case
Request a Free FCRA Case Review
If inaccurate credit reporting, identity theft, a mixed file, an improper inquiry, or a screening error has harmed you, contact Fowkes & Hasanbasic.
Call (727) 500-1010.
Paul R. Fowkes, Esq., is a co-founding shareholder of Fowkes & Hasanbasic and has more than 20 years of experience handling consumer-related claims in Florida. His practice includes litigation under the Fair Credit Reporting Act involving credit bureaus, furnishers, mixed files, identity theft, inaccurate account reporting, and consumer disputes.
Read Paul Fowkes’s biography or verify his license through The Florida Bar.
This page provides general information and is not legal advice. Reading it or contacting the firm does not create an attorney-client relationship. Past experience does not guarantee a particular outcome.