RECOVERED — Actual Damages Available in Credit Report Lawsuits
Errors on your credit report can have devastating financial consequences, leading to denied loans, higher interest rates, lost job opportunities, and significant emotional distress.
“Many consumers don’t realize that when credit reporting agencies or creditors make mistakes, they may have the legal right to recover actual damages under the Fair Credit Reporting Act (FCRA).”
At R23 Law Consumer Protection Attorneys, we specialize in helping consumers correct credit report errors and seek compensation for financial and emotional harm caused by these violations. If your credit report contains false information that has cost you money or peace of mind, you may be entitled to compensation beyond just a correction. Keep reading to learn how you can hold negligent credit bureaus and creditors accountable.
What Are Actual Damages in a Credit Reporting Lawsuit?
When credit reporting errors negatively impact your life, the law provides a way for you to recover actual damages, which include economic losses, emotional distress, and other financial harms.
Types of Actual Damages You Can Recover
Economic Damages (Financial Losses):
Higher Interest Rates: If you were forced to accept a loan with an unfairly high interest rate due to false negative marks on your report, you can claim damages.
Loan Denials: Being denied a mortgage, car loan, or credit card can set you back financially, preventing you from making key purchases or investments.
Loss of Employment or Housing: Some employers and landlords use credit reports to screen applicants. If a credit error cost you a job or a rental, you may be able to recover lost wages or additional moving expenses.
Non-Economic Damages (Emotional Distress):
Anxiety, Stress, and Embarrassment: Financial instability caused by credit errors can cause extreme emotional strain.
Damage to Reputation: A low credit score can unfairly label you as irresponsible, impacting your ability to secure financial stability.
Punitive Damages (in Some Cases):
In cases of willful violations of the FCRA, courts may award punitive damages to punish credit reporting agencies or creditors and deter future misconduct.
Your Rights Under the Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act (FCRA) is a federal law that regulates credit bureaus and protects consumers from errors in their credit reports. Under the FCRA, you have the right to:
Dispute inaccuracies on your credit report and have them corrected within 30 days.
Receive compensation if a credit reporting agency or creditor negligently or willfully violates the law.
Sue for damages if errors in your credit report cause financial harm.
If a credit bureau fails to correct mistakes after being notified, you can take legal action to recover compensation for damages caused by their negligence.
How Do Credit Report Errors Happen?
Despite strict regulations, credit reporting errors are alarmingly common. Some of the most frequent mistakes include:
• Identity theft-related errors (fraudulent accounts in your name)
• Incorrect account statuses (paid debts marked as unpaid)
• Mixed credit files (your information mixed with someone else’s)
• Duplicate negative marks
• Failure to update information after disputes
If you’ve encountered any of these errors, you need legal representation to ensure that your rights are protected.
Why You Need an Attorney for a Credit Reporting Lawsuit
Credit bureaus and lenders have teams of lawyers defending them against consumer lawsuits. Going up against them alone is risky—but R23 Law has the experience and resources to fight for your rights.
Contact R23 Law
If a credit report error has negatively affected your finances, housing, or employment opportunities, you have legal options. Don’t let credit bureaus dismiss your rights—fight back with the experienced consumer protection attorneys at R23 Law.
At R23 Law, we fight for consumers—and we’re ready to fight for you.
