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An accurate credit report has a major effect on a person’s financial potential. Most lenders, renters, and even employers will run a credit check to determine if taking a risk on an individual makes sense. It is no secret that a poor credit score can result in the denial of a loan or result in the receipt of a loan at a higher interest rate.
Unfortunately for many consumers, errors in credit reports can have a negative impact on one’s score. An error can lead to thousands of dollars worth of damages for which a credit reporting bureau may be liable.
A Pascagoula Credit Denial Lawyer may be able to help if a credit denial was the result of an inaccurate credit report. A skilled personal injury attorney could work to identify the reason for the denial and help you get your credit back on track.
A credit report serves as an efficient way for parties to gain an understanding of an individual’s financial situation. Specifically, it contains a record of current debts, a person’s record of paying those debts, and their current lines of credit. Many institutions rely on this report to determine whether they wish to take a risk in extending a new line of credit.
An inaccurate credit report could have a disastrous impact on a person’s ability to live a fruitful financial life. People may have difficulty obtaining a loan to buy a home or to purchase a new vehicle. Even renters may find that a property management company refuses to offer a lease due to a poor payment record. Some employers also perform credit checks to determine the overall trustworthiness of a potential hire. An experienced Pascagoula credit denial lawyer could help to examine the reason for a poor result and to identify whether the report was the result of an inaccuracy.
Financial institutions, landlords, and employers can only rely on the information that they receive from the credit reporting bureaus. These lenders have no way of knowing whether the information contained within is accurate, and people who receive a denial cannot hold these entities responsible.
Instead, the law places the burden on the credit reporting bureaus to produce accurate reports. The Fair Credit Reporting Act (FCRA) states that not only does a credit bureau have the obligation to produce an accurate report, but they must also act to fix errors that a consumer brings to their attention. A skilled Pascagoula credit denial attorney could help to file these complaints.
However, a failure to fix a complaint could still result in an unfair credit denial. When this occurs, the credit reporting bureau may owe the consumer monetary damages. The FCRA offers consumers two methods to demand compensation. The first results from willful conduct on the part of bureaus to fix a known error in a credit report. Here, the plaintiff may demand a statutory award of $100 to $1000, even if they did not suffer monetary damages.
Other cases allege negligence on the part of credit agencies. In these claims, a plaintiff demands their actual damages that result from not obtaining a job or only receiving a loan at a higher interest rate. This applies when the agency is negligent in failing to fix an error.
An inaccurate credit report could result in devastating financial consequences. These include an inability to obtain housing, a denial for a loan, or even being passed over for a job. The banks, employers, and landlords who rely on these reports cannot be responsible for a denial. That blame falls to the credit reporting agencies.
These agencies have a duty to provide accurate reports and to perform proper investigations upon request by consumers to fix errors. The FCRA states that consumers can demand compensation, in some cases, even if they do not suffer actual harm. A Pascagoula credit denial lawyer could help you to pursue these remedies. Contact a Pascagoula credit denial lawyer today to discuss your case.