What damages can I get if I sue under the FCRA for false credit reporting?

What damages can I get if I sue under the FCRA for false credit reporting?

Let’s look at the four types of damages you can get under the FCRA (Fair Credit Reporting Act) related to false information on your credit reports.

1. Actual or compensatory damages.

This is where we evaluate what actual damages need to be compensated.

Let’s say that, if you had no false credit reporting, your interest rate would be 4% instead of 8%.

That’s a damage that needs to be fixed, and it can be fixed by plugging the right numbers in.

Maybe the false credit reporting caused you to miss a promotion with a higher income.

That could’ve been extra income every year, so that needs to be fixed.

Having false information on your credit reports obviously causes emotional distress(frustration, anxiety, etc.) for you.

In Alabama, you can be given mental anguish or emotional distress damages.

2. Statutory

If the credit reporting breaks the law in a willful, or wanton, way, then that’s a problem.  A problem for the bad guys.

It’s not just negligence, but you’ve perhaps disputed this with them multiple times and they refuse to fix it.

Here’s an example, which we’ve seen this happen countless times.

There’s a judgment on someone’s credit report.

We get the judgment vacated, which means it shouldn’t be on there, but the credit reporting agency refuses to remove the debt from the report.

Then, we send then a copy of the order, the one that says the judgment shouldn’t be there, and they say they don’t care.

How can that be anything but willful?

Statutory damages can be up to $1,000 per violation.

This is different than the FDCPA, which is one statutory damage for all violations.

3. Punitive

This is where we can punish the debt collector or furnisher for the conduct we described above — willful or wanton conduct.

This sends them a message, and encourages them to stop making this bad decision.

This also lets other companies see what happens when they break the law, and encourage them to follow the rules.  Juries can use punitive damages to send the message loud and clear — “This is not tolerated in Alabama.”

4. Attorney fees/costs

This is where the company has to pay your lawyer, in addition to their lawyer, as compensation for breaking the law.

They also will have to pay litigation costs.

In conclusion, it’s definitely worth your time to sue these guys for breaking the law.

Contact Us.

If you live in Alabama and you have any questions, you can reach us by phone at 1-205-879-2447.

You can also fill out a contact form and we will get in touch with you as soon as possible.

It is definitely worth your time to sue under the FCRA when you have false credit reporting that the bad guys won’t fix.  You can get your actual damages paid — statutory damages can be imposed for each violation and you can get punitive damages.  Along with your attorney’s fees paid.

And you get your credit report fixed and help encourage these guys to stop breaking the law.

I look forward to chatting with you!

Have a great day.

-John G. Watts