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The Five Most Common FCRA Claims

What are the most common errors on a credit report that lead to FCRA claims — and resulting damages?

  1. Status Disputes – error/inaccuracy standards which give rise to valid disputes:
  • these are things that are factually inaccurate such as:
      • reporting a settled account as past due/open;
      • reporting a discharged account with a balance owed;
      • reporting the dates of first delinquency as the date of the charge off or foreclosure which extends the time on the report;
      • Re-aged accounts;
      • and reporting a trade line twice.
  • Technically accurate, but materially misleading.
      • Reporting an old medical debt as late and unpaid when an insurance company failed to pay its contractual obligation;
      • reporting a delinquency when the failure to pay was caused by the creditor – such as payment credited to the wrong account.
  1. Mixed/Merged Files – pre-screened offers, variations of names/socials.
  2. ID Theft – unauthorized inquiries, pre-screened offer, history or account client doesn’t recognize.
  3. Reinsertion – previously deleted accounts require notice to the consumer w/i 5 business days of the reinsertion.
  4. Impermissible Purposes – pulling credit to determine collectability before filing a lawsuit on an involuntary debt such as a personal injury; employers or landlords pulling credit without express authorization; credit pulls after a bankruptcy discharge.

The best place to pull your credit is from their website.  While a consumer is entitled to a free report annually, until July 31, 2020 under the COVID relief, these reports are available for free on a weekly basis.

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