If a credit bureau or the company that reported an error will not fix it after a dispute, a credit reporting dispute attorney enforces the federal Fair Credit Reporting Act. That law requires consumer reporting agencies to follow reasonable procedures to assure maximum possible accuracy, to conduct a reasonable reinvestigation of disputed items, and to delete or modify information found inaccurate, incomplete or unverifiable. When a company fails to comply with an FCRA requirement, the law makes damages and attorney's fees potentially available, depending on whether the failure was willful or negligent.
A credit report error can matter after something concrete has already happened. A loan application was denied. An apartment went to someone else. Perhaps a dispute letter went out weeks ago and the answer came back "verified" for an account that was never theirs. The error is embarrassing, it is affecting real decisions, and the question now is whether the law actually requires anyone to fix it, or whether the only choice is to keep sending letters.
This page explains what federal law requires of credit bureaus and of the companies that report to them, the kinds of errors the law addresses, the dispute options a consumer has, and what the statute makes available when a dispute goes unresolved.
Credit Report Disputes and the FCRA
The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., is the federal law that governs credit report disputes, and it applies across the United States. It regulates three groups. The first is consumer reporting agencies, the companies that gather information about people and sell it as reports. The CFPB explains that these companies are also called credit bureaus or credit reporting companies. The second is furnishers, the lenders, creditors, collection agencies and other businesses that send account information to those agencies. The third is users of consumer reports, such as lenders, employers and landlords.
A credit reporting dispute attorney enforces rights the FCRA creates. That is different from credit repair, which is a service sold to help with disputes. The legal question is whether the company followed the procedures the statute requires, and what the statute provides if it did not.
For a wider view of how the FCRA fits alongside the federal debt collection and robocall laws, see the overview of a consumer rights attorney's work.
What the FCRA Requires: Accuracy, Reinvestigation, and Correction
Accuracy comes first. Under 15 U.S.C. § 1681e(b), whenever a consumer reporting agency prepares a consumer report, it must "follow reasonable procedures to assure maximum possible accuracy" of the information about the person the report concerns.
The second duty is reinvestigation, meaning the agency's fresh look at an item a consumer says is wrong or incomplete. Under 15 U.S.C. § 1681i(a), when a consumer disputes the completeness or accuracy of any item and notifies the agency directly or through a reseller, the agency must, free of charge, conduct a reasonable reinvestigation. It must then record the item's current status or delete it. This must happen within 30 days of receiving the dispute. That period may be extended by up to 15 additional days if the agency receives relevant information from the consumer during the 30 days, but not if, during the 30 days, the information is found inaccurate or incomplete or the agency determines that it cannot be verified. The agency must notify the furnisher within 5 business days and must consider all relevant information the consumer submits. If an item is found inaccurate, incomplete or unverifiable, the agency must promptly delete or modify it.
Furnishers have their own duty. Under 15 U.S.C. § 1681s-2(b), a furnisher that receives notice of a dispute from an agency must investigate, review the relevant information, report the results, and correct the item where it is wrong. Where the investigation finds the information inaccurate or incomplete, it must also tell the other nationwide agencies it reported to.
A mixed file is a credit file that contains information belonging to a different consumer. An agency that lets one, or an unchecked error, persist after a dispute may violate these provisions if its procedures or reinvestigation were not reasonable. Whether a particular situation violates the law depends on its facts.
Types of Credit Report Errors the FCRA Addresses
These problems usually show up in a few recognizable forms.
Wrong account status. An account reported as open after it was closed, as delinquent after it was paid, or with the wrong balance or payment date. Regulation V lists the payment status, the high balance and the dates an account was opened or closed among the things a consumer may dispute.
Mixed file errors. Accounts, addresses or public records that belong to someone with a similar name or Social Security number appear in the consumer's report. The FCRA separately requires an agency to maintain reasonable procedures designed to prevent the reappearance in a consumer's file of information deleted after a reinvestigation, other than information reinserted after the furnisher certifies that it is complete and accurate (15 U.S.C. § 1681i(a)(5)(B)-(C)).
Identity theft entries. These are accounts or inquiries the consumer never opened or authorized. Under 15 U.S.C. § 1681a(q)(4), an identity theft report means, at a minimum, a report that alleges an identity theft, that is a copy of an official, valid report filed by a consumer with an appropriate Federal, State or local law enforcement agency, and whose filing subjects the person filing it to criminal penalties if the information in it is false. Regulation V names a police report and a fraud or identity theft affidavit as examples of documentation a consumer may include with a direct dispute (12 C.F.R. § 1022.43(d)).
Outdated negative information. Under 15 U.S.C. § 1681c(a), generally and except as that section's subsection (b) authorizes, a consumer reporting agency may not report accounts placed for collection or charged off that are more than seven years old, most other adverse items more than seven years old other than records of criminal convictions, or bankruptcy cases more than 10 years old. Subsection (c) of that section sets when the seven-year period begins for a delinquent account placed for collection or charged off. Accurate negative information may still appear until those periods run.
What the FCRA Makes Available When a Dispute Is Not Resolved
Liability under the FCRA turns on how a company failed to comply, not simply on the fact that an error existed. The statute draws a line between willful and negligent noncompliance.
Under 15 U.S.C. § 1681n, any person who willfully fails to comply with an FCRA requirement with respect to a consumer is liable for actual damages the consumer sustained as a result, or damages of not less than $100 and not more than $1,000. That person is also liable for punitive damages in whatever amount the court allows. In a successful action, it is liable for the costs of the action and reasonable attorney's fees as the court determines.
Under 15 U.S.C. § 1681o, a person who is negligent in failing to comply is liable for any actual damages the consumer sustained as a result of the failure. In a successful action, it is also liable for costs and reasonable attorney's fees as the court determines.
Each section also provides that, on a finding by the court that an unsuccessful pleading, motion or other paper filed in connection with an action under that section was filed in bad faith or for purposes of harassment, the court shall award the prevailing party attorney's fees reasonable in relation to the work expended in responding to that paper.
Each remedy depends on proof. A court must find a failure to comply with a specific requirement. Statutory damages of $100 to $1,000 and punitive damages are available under 15 U.S.C. § 1681n for willful noncompliance, and 15 U.S.C. § 1681o provides for actual damages sustained as a result of negligent noncompliance. Under 15 U.S.C. § 1681s-2(c), and except as provided in 15 U.S.C. § 1681s(c)(1)(B), 15 U.S.C. §§ 1681n and 1681o do not apply to a violation of 15 U.S.C. § 1681s-2(a) (including regulations issued under it), the furnisher's duty to provide accurate information; the furnisher investigation duty described above arises under 15 U.S.C. § 1681s-2(b). A report error does not by itself establish liability. The CFPB notes that time limits apply to bringing a lawsuit. For how a federal consumer case is structured, see the page on consumer lawsuits under federal law.
The Dispute Process: What a Consumer May Do Under the FCRA
A consumer has more than one door. Sending another letter to the same address is not the only option.
A dispute with the consumer reporting agency. Under 15 U.S.C. § 1681i(a), a consumer may dispute any item with the agency, which triggers the reinvestigation described above. The CFPB says that fixing an error generally means contacting both the credit reporting company and the company that provided the information. It also suggests keeping copies of the dispute letter and documents sent.
A direct dispute with the furnisher. Under 12 C.F.R. § 1022.43 (Regulation V), a consumer may send a dispute straight to the furnisher. The address may be the one shown on the consumer report, an address the furnisher clearly specifies for disputes, or any business address if it has specified none. The notice must identify the account, state what is disputed and why, and include reasonably required supporting documents. The furnisher must then investigate and report results within the same period an agency would have. There are exceptions, including disputes about identifying information such as a name or address, and disputes the furnisher reasonably believes came from a credit repair organization.
A complaint to an agency. The CFPB's page on disagreeing with dispute results says a consumer can submit a complaint with the CFPB online or by calling (855) 411-CFPB (2372). It also mentions a complaint to the state attorney general, noting that a state may have additional protections for consumers beyond the Fair Credit Reporting Act.
Adverse action includes a denial of credit, insurance or employment based on a consumer report, among other decisions that go against the consumer. According to the CFPB's summary of FCRA rights, anyone who takes adverse action based on a report must tell the consumer and, among other things, give the name, address and phone number of the agency that supplied it (15 U.S.C. § 1681m(a)).
Situations the FCRA Addresses After a Failed Dispute
It is reasonable to wonder at what point a credit report problem stops being paperwork and becomes a legal question. Several factual patterns tend to mark that line.
A consumer who has completed a reinvestigation and still sees the error. When the result is "verified" for information the consumer can document as wrong, the question becomes whether the reinvestigation was reasonable.
A consumer whose file keeps pulling in someone else's information. A mixed file that comes back after correction raises questions about the agency's accuracy procedures under 15 U.S.C. § 1681e(b).
A consumer who disputed identity theft accounts and included supporting documentation, but the accounts remain. Here the documentation is part of the record of what each company was given.
A consumer who was denied credit, housing or a job because of information they believe is inaccurate. The adverse action notice identifies the agency that supplied the report, which helps connect the error to the harm.
In each case, what matters is the record: what was disputed, when, with what documents, and what came back.
This page covers credit reporting accuracy and disputes. It does not cover credit repair services, debt settlement, bankruptcy, or whether a particular debt should be paid or disputed. Collector conduct is its own subject, such as debt collectors calling family members.
About Case Review Requests
Federal Consumer Rights is a website that provides information and facilitates inquiries concerning consumer-protection matters. It is not a law firm. Its pages explain federal consumer law, including the FCRA, in plain terms.
A reader may submit a request for a case review through this site. A request may be passed to attorneys, who decide for themselves whether to respond. Sending a request does not mean anyone will respond, and it does not create an attorney-client relationship.
Requesting a Consumer Rights Case Review
This page does not address credit repair, debt settlement or whether to pay a particular debt. A consumer rights case review can be requested through Federal Consumer Rights.
