A credit report error is any inaccurate, incomplete, or unverifiable piece of information appearing on a consumer's credit report maintained by a credit reporting agency such as Experian, Equifax, or TransUnion. Under the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., consumers have the right to dispute inaccurate credit information and may be entitled to damages when credit bureaus or data furnishers fail to investigate and correct errors after receiving proper notice of a dispute.
Credit report errors are far more common than most consumers realize. According to the Federal Trade Commission, approximately one in five consumers has an error on at least one of their credit reports. These errors can result in denied loan applications, higher interest rates, lost employment opportunities, and significant emotional distress. The FCRA exists to protect consumers from exactly these harms.
What the FCRA Covers
The Fair Credit Reporting Act, enacted in 1970 and codified at 15 U.S.C. § 1681 et seq., is the primary federal statute governing the accuracy and privacy of information in consumer credit reports. The law imposes obligations on three categories of entities:
- Credit Reporting Agencies (CRAs): Companies that compile and sell consumer credit reports, including the three major bureaus: Experian, Equifax, and TransUnion. Under 15 U.S.C. § 1681e(b), CRAs must follow reasonable procedures to assure maximum possible accuracy of the information they report.
- Furnishers of Information: Banks, credit card companies, collection agencies, and other entities that report account information to the credit bureaus. Under 15 U.S.C. § 1681s-2, furnishers have a duty to provide accurate information and to investigate consumer disputes forwarded by credit bureaus.
- Users of Credit Reports: Lenders, landlords, employers, and insurers who access credit reports to make decisions. Under 15 U.S.C. § 1681b, credit reports may only be obtained for a permissible purpose.
The FCRA covers all forms of consumer reports, including traditional credit reports, tenant screening reports, background check reports, and insurance underwriting reports. Any consumer who has been harmed by inaccurate reporting may have a claim under this statute.
Common Violations
Credit report errors take many forms. The following are among the most frequently encountered violations that may give rise to a claim under the FCRA:
Mixed Files
A mixed file occurs when a credit bureau merges the credit history of two or more consumers into a single report. This typically happens when consumers share similar names, Social Security numbers, or addresses. For example, a father and son with the same name may find their accounts combined, or two unrelated individuals with similar Social Security numbers may have their files merged. Mixed files are among the most damaging credit report errors because they can introduce another person's delinquencies, collection accounts, and public records onto your credit report.
Incorrect Account Information
This category includes accounts reporting wrong balances, incorrect payment histories, wrong dates of first delinquency, and accounts incorrectly reported as charged off, in collections, or past due. Even a single late payment erroneously reported on an otherwise clean credit history can significantly impact a consumer's credit score.
Outdated Negative Information
Under 15 U.S.C. § 1681c, most negative information must be removed from a credit report after seven years from the date of first delinquency. Bankruptcies under Chapter 7 may be reported for ten years. When credit bureaus continue to report negative information beyond these time limits, they may be violating the FCRA.
Re-aging of Debts
Re-aging occurs when a debt collector or furnisher resets the date of first delinquency on an account, making an old debt appear more recent than it actually is. This practice extends the time the negative information remains on a consumer's credit report beyond the period allowed by the FCRA and is a common violation.
Deceased Notations
In some cases, credit bureaus erroneously place a "deceased" indicator on a living consumer's credit file. This notation effectively freezes the consumer's ability to obtain any credit, employment, or housing that requires a credit check, and it can be extremely difficult to resolve without legal assistance.
Accounts Belonging to Others
Accounts that do not belong to you may appear on your credit report due to data entry errors, identity theft, or system failures at the bureau or furnisher level. This includes authorized user accounts added without your knowledge, accounts opened by identity thieves, and accounts belonging to individuals with similar identifying information.
Unauthorized Hard Inquiries
Under 15 U.S.C. § 1681b, a credit report may only be pulled with a permissible purpose. When a company pulls your credit report without your authorization or a legitimate business reason, the resulting hard inquiry on your report may be a violation of the FCRA.
The Dispute Process: Step by Step
If you identify an error on your credit report, the FCRA provides a structured dispute process. Following these steps carefully is important for both resolving the error and preserving your legal rights:
- Obtain your credit reports. You are entitled to one free credit report per year from each of the three major bureaus through AnnualCreditReport.com, the only federally authorized source. Review each report carefully for inaccuracies.
- Identify every error. Document each inaccuracy, noting the account name, account number, and the specific information that is incorrect. Keep copies of any supporting documentation, such as bank statements, payment receipts, or court records.
- Submit a written dispute to the credit bureau. While bureaus offer online dispute portals, submitting a dispute by certified mail with return receipt requested creates a documented paper trail. Your dispute letter should identify each error, explain why the information is inaccurate, and include copies (not originals) of supporting documents. Send your dispute to each bureau reporting the error.
- The bureau must investigate within 30 days. Under 15 U.S.C. § 1681i(a), the credit bureau must conduct a reasonable investigation within 30 days of receiving your dispute. The bureau must forward your dispute and all relevant information to the furnisher, who must then investigate and report back.
- Review the results. The bureau must provide you with written results of its investigation, including a free copy of your credit report if the dispute resulted in a change. If the bureau corrects the error, it must notify any party that received your report in the past six months (or two years for employment purposes).
- If the error is not corrected, consult an attorney. If the credit bureau fails to correct the error after your dispute, or if it removes the error only to have it reappear, you may have grounds for a lawsuit under the FCRA.
Your Rights Under the FCRA
The FCRA provides consumers with several important rights regarding the accuracy and privacy of their credit information:
- Right to accuracy. Credit bureaus must follow reasonable procedures to ensure maximum possible accuracy of the information in your credit report (15 U.S.C. § 1681e(b)).
- Right to dispute. You have the right to dispute any inaccurate or incomplete information with the credit bureau, which must investigate within 30 days (15 U.S.C. § 1681i).
- Right to know what is in your file. You may request and obtain all information in your consumer file at any time (15 U.S.C. § 1681g).
- Right to know who has accessed your report. The credit bureau must provide you with a record of all parties that have requested your credit report within the past year, or two years for employment inquiries (15 U.S.C. § 1681g(a)(3)).
- Right to have obsolete information removed. Most negative information must be removed after seven years; Chapter 7 bankruptcy after ten years (15 U.S.C. § 1681c).
- Right to sue. If a credit bureau, furnisher, or user of credit reports violates the FCRA, you have the right to bring a private lawsuit in federal or state court (15 U.S.C. § 1681n and § 1681o).
- Right to a free annual report. You are entitled to one free report per year from each of the three major bureaus (15 U.S.C. § 1681j).
Damages Available
The FCRA provides for two categories of liability depending on the nature of the violation:
Willful Violations (15 U.S.C. § 1681n)
When a credit bureau or furnisher willfully fails to comply with the FCRA, consumers may recover:
| Damage Type | Amount |
|---|---|
| Actual damages | Proven financial losses, including lost credit opportunities, higher interest rates paid, and emotional distress |
| Statutory damages | $100 to $1,000 per violation, at the court's discretion, even without proof of actual damages |
| Punitive damages | Additional amount determined by the court to punish willful misconduct; no statutory cap |
| Attorney's fees and costs | The defendant pays the prevailing plaintiff's reasonable attorney's fees and court costs |
Negligent Violations (15 U.S.C. § 1681o)
When the violation results from negligence rather than willful conduct, consumers may recover actual damages and attorney's fees and costs. Statutory and punitive damages are not available for negligent violations.
How We Can Help
Rausa Russo Law, PLLC represents consumers throughout New York and, through our network of trusted consumer protection attorneys, across the country in FCRA claims involving credit report errors. Our approach includes:
- Free case evaluation. We review your credit reports and dispute history to assess whether you have a viable claim under the FCRA.
- Comprehensive dispute strategy. If you have not yet disputed the error, we can guide you through the process and help you build a strong record for potential litigation.
- Litigation against credit bureaus and furnishers. When disputes fail to resolve inaccuracies, we file lawsuits in federal court against the parties responsible for the continued reporting of inaccurate information.
- No out-of-pocket cost. Because the FCRA provides for fee-shifting, we handle most credit report error cases with no upfront cost to the client. If we recover damages on your behalf, the defendant pays our attorney's fees.
For more information on how to dispute credit report errors on your own, see the CFPB's guide on disputing credit report errors.
Frequently Asked Questions
Under 15 U.S.C. § 1681i, a credit reporting agency must complete its investigation within 30 days of receiving your dispute. If you provide additional relevant information during the investigation period, the bureau may extend this deadline to 45 days. If the bureau fails to conduct a reasonable investigation within this timeframe, it may be in violation of the FCRA, and you may have grounds for a legal claim.
Yes. Under 15 U.S.C. § 1681i, credit bureaus are required to conduct a reasonable investigation when you dispute inaccurate information. If the bureau fails to investigate, conducts only a cursory review, or continues to report the inaccurate information after your dispute, you may file a lawsuit in federal or state court. You may be entitled to actual damages, statutory damages up to $1,000, punitive damages for willful violations, and attorney's fees and costs.
You can dispute any information on your credit report that is inaccurate, incomplete, or unverifiable. Common errors include accounts that do not belong to you, incorrect balances or payment histories, outdated negative information that should have been removed, accounts incorrectly reported as delinquent or in collections, unauthorized hard inquiries, and incorrect personal information such as a wrongful deceased notation.
A mixed file occurs when a credit reporting agency merges the credit information of two or more different consumers into a single credit report. This frequently happens between individuals with similar names, Social Security numbers, or addresses, such as a father and son with the same name. Mixed files can introduce another person's debts, collection accounts, and delinquencies onto your report, and they are among the most damaging types of credit report errors.
You do not need a lawyer to file an initial dispute. You can submit disputes directly to Experian, Equifax, or TransUnion online, by mail, or by phone. However, if the bureau fails to correct the error after your dispute, or if you have suffered financial harm or emotional distress as a result of the inaccuracy, an attorney can evaluate whether you have a viable claim under the FCRA. Because the FCRA provides fee-shifting, the defendant pays your attorney's fees if you prevail, so hiring a lawyer typically costs you nothing out of pocket.