What Are The Benefits Of Suing Under The Fair Credit Reporting Act (FCRA)?

You discovered one or more errors on your credit reports and you have disputed the errors directly with the credit reporting agencies.

But the errors still remain.

And now you are thinking about suing the credit reporting agencies and the furnisher of the false information.

What exactly is the benefit to you of suing under the Fair Credit Reporting Act (FCRA)?

First, it is the best way to force the responsible parties to correct and fix your credit report. Dispute letters should get the bureaus and the furnishers to fix false information  but sometimes they get blinded by money and simply decide they don’t care about your credit reports being accurate. Credit repair places all over the internet claim they can force the bureaus to delete information (even accurate information which is very improper) but they can’t. The best way to force a bureau such as Equifax and a furnisher such as Capital One to fix your credit reports is to sue them after you have properly disputed.

When they realize they are facing the prospect of written orders detailing their bad conduct and when they realize they may stand before a jury in Alabama federal court and give an account for what they have done it is amazing how they suddenly decide their most passionate desire is “We just want to make sure you client’s credit report is accurate, John.”

Amazing. They don’t care before we sue but after we sue they often “want to do the right thing.” I’m sure it is just a coincidence and has nothing to do with the lawsuit.

Second, you can recover actual damages for the harm you have suffered. After you dispute the false information, and it remains, then any damages you have can be compensated by the jury. This can be emotional distress damages. It can be economic losses. There is a wide variety of damages you can be compensated for under the FCRA.

Third, you can recover attorney fees to pay your lawyer. This is powerful as it weighs heavily on the minds of companies like Experian and Portfolio Recovery Associates that they may be responsible for paying your lawyer fees. Federal judges have awarded Stan Herring and me the rate of $350 per hour. The last federal case we tried — which was not overly complicated — we had $125,000 in fees by the end of the three and a half day trial. Defendants really don’t like this. It prompts them to do the right thing — the thing they should have done before you had sue — and fix your credit reports and compensate you so they don’t get stuck with a big attorney’s fee bill from their lawyer. And from yours.

Fourth, you can recover punitive and statutory damages if the misconduct was intentional or reckless. Punitive damages are to punish the wrongdoer and to discourage the wrongdoer . . . and others in the same position . . . from ever mistreating Alabama consumers the way that you were mistreated. Statutory damages can be up to $1000 per violation of the FCRA. This differs from the Fair Debt Collection Practices Act (FDCPA) which awards statutory damages in any violation but only up to a maximum of $1000 per case.

Finally, it lets the credit reporting agencies such as Trans Union and furnishers such as Bank of America know that you will not tolerate having your rights violated and you will stand up for yourself. These companies believe that you don’t know what to do and you won’t do anything even if you do know what to do. When someone . . . such as you . . . stands up and says “I’ve had it!” and then takes the proper action . . . such as suing . . . then these companies are truly baffled. They don’t expect you to do this and you instantly mark yourself as a tiny minority of Alabama consumers who will not take abuse. It all goes back to being in school. Remember the bully? When you stand up to the bully, it bothers him. He leaves you alone if you were smart and determined in how you stood up to him. When you tell abusive companies that you will not be pushed around, they tend to leave you alone so that they will not feel the pain of future lawsuits from you.

I hope this summary of some of the benefits of suing under the FCRA is helpful to you. If you live in Alabama and would like to discuss your FCRA situation with us, please fill out our form or pick up the phone and give us a call at 205-879-2447. We look forward to hearing from you.