Fraudulent Credit Reporting in Pascagoula

Credit reporting errors are common and can occur at almost any point in the process. Both creditors and credit reporting agencies have a duty to provide accurate data leading to the creation of proper credit reports. Additionally, credit reporting agencies must take action to change any errors that a consumer notices and brings to their attention.

It is against the law for a credit reporting agency to know that an error is present on a consumer’s report and fail to correct the issue. Especially when the failure to fix the error is deliberate, consumers have the right to demand compensation in court.

As a result, fraudulent credit reporting in Pascagoula could allow a consumer to demand remedies that include cash payments. Identifying fraud on a credit report in Pascagoula is a major part of maintaining proper financial health and protecting one’s future. Reach out to a credit denial lawyer to discuss your legal options.

What does it Mean for a Credit Agency to Commit Fraud Concerning Credit Reports? 

The Fair Credit Reporting Act (FCRA) states that the credit reporting agencies have a duty to produce an accurate credit report for all Americans. Additionally, this law also requires these agencies to create and implement procedures whereby a consumer can allege that there is an error on their report. If a consumer files a complaint, the agency has the obligation to investigate whether there is an error and to take steps to fix the problem.

Fraud occurs when the credit agency performs the investigation, recognizes that there is an error, but does nothing to fix it. This is in contrast to claims that allege that the company negligently failed to perform a proper investigation. This distinction is essential in determining which remedies a consumer may demand in court. As a result, proving fraudulent credit reporting in Pascagoula can be the gateway to demanding compensation.

Available Remedies Following Fraudulent Credit Reporting

The Fair Credit Reporting Act provides specific remedies for people who are the victims of fraudulent credit reporting. It states that a consumer can demand payments for their actual damages that result from the fraud. These can include:

  • Interest payments on a loan that a bank issued at a higher interest rate because of a false credit report
  • Lost income due to missing out on a job because of a poor credit score
  • Penalty payments that a consumer may have made because of a false delinquent mark

If a consumer can prove that the failure to fix a credit reporting error was the result of fraud, a court may award these actual damages. In addition, even people who have not suffered actual harm because of fraudulent credit reporting in Pascagoula may be able to collect compensation. The statute says that any person who is the victim of fraud may bring a claim demanding from between $100 to $1000, regardless of their financial losses. However, plaintiffs in these claims must demand one form of remedy or the other; they cannot demand both sources of payment.

Fraudulent Credit Reporting in Pascagoula Violates Federal Law

The burden falls on credit reporting agencies to produce accurate credit reports. This includes creating a plan to deal with situations where a customer believes that there is an error on their file. If a credit reporting bureau acknowledges that there is an error, yet does nothing to fix it, this constitutes credit reporting fraud.

Individuals have two options to demand a remedy. They may push for a court to award a flat fee of between $100 and $1000, even if they did not suffer actual damages. In addition, the statute allows for a person to demand payments for their actual losses, no matter how substantial those losses may be. Pursuing a claim of fraud against a credit reporting agency could help to set things right and to bring your financial portfolio back to health. Discuss the nuances of fraudulent credit reporting in Pascagoula with a credit denial attorney today.

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