Remedies for FCRA Violations (2024)

FAQs

What are the remedies for Fair Credit Reporting Act violation? ›

Statutory damages.

These damages range between $100 and $1,000. Consumers can take advantage of statutory damages even without proving that the violation caused you harm. Punitive damages, with no limit on how much. Punitive damages are decided by the court overseeing the proceeding.

notify a creditor that you dispute the debt that it has reported. conduct a reasonable investigation of your dispute or. correct or delete any inaccurate, incomplete, or unverifiable information within 30 days (or 45 days in some cases) of receiving notice of your dispute.

Seek Damages – You have the right to sue and seek damages in a state or federal court from anyone, such as a consumer reporting agency or a user of consumer reports, who violates the Fair Credit Reporting Act.

Victims can recover statutory amounts from $100 to $1,000 per violation. Punitive damages can also be recovered in egregious cases. For example, the California CCRAA allows punitive damages from $100 to up to $5,000 per violation.

Under §1681n, a jury may award you damages sufficient to punish a Defendant that commits a willful (knowing or reckless) violation of the FCRA. Bottom line? Consumers who bring successful lawsuits under the FCRA may receive real and substantial compensation.

The purpose of punitive damages is to send a message to defendants (punish them) and to deter them from committing similar misconduct. Punitive damages are explicitly authorized by the Fair Credit Reporting Act for willful (knowing and reckless) violations.

The statute of limitations for bringing an action for a violation of the FCRA is two years from the date of discovery of the violation by the consumer, although the action must be brought within five years of the date of the actual violation.

FACTA creates a private cause of action for “any actual damages . . . or damages of not less than $100 and not more than $1,000.” 15 U.S.C. § 1681n(a).

2) What is the 609 loophole? The “609 loophole” is a misconception. Section 609 of the Fair Credit Reporting Act (FCRA) allows consumers to request their credit file information. It does not guarantee the removal of negative items but requires credit bureaus to verify the accuracy of disputed information.

How to dispute FCRA? ›

Fair Credit Reporting Act File Disclosure: The maximum charge to a consumer under the FCRA for file disclosure increases effective January 1, 2024, to $15.50 from $14.50.

Section 609(a) of the FCRA generally requires consumer reporting agencies to, upon request, disclose all information in the consumer's file at the time of the request and the sources of the information.

Duty to Provide CRAs with Accurate Information

Section 623(a) of the FCRA generally prohibits a person from furnishing inaccurate information to a CRA. The standards for the prohibition differ, depending on whether the person specifies an address for receipt of notices from consumers concerning inaccurate information.

YOUR REMEDIES IF THE CREDITOR VIOLATES THE FCBA

You may also sue a creditor for damages resulting from violations of the FCBA, plus twice the amount of any finance charge (not less than $100 or more than $1,000). If you feel your situation warrants a lawsuit under the FCBA, consult an attorney about your options.

If you can show that a credit reporting agency or other party willfully violated the terms of the FCRA, then you may be able to recover the following damages: Actual, provable damages (no limit) Statutory damages between $100 and $1,000 (there is no need to prove that the violation caused you actual harm)

You may seek damages from violators.

If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court.

If your rights have been violated under the FCRA, you are entitled to seek actual or statutory damages, recover attorney's fees and court costs and request punitive damages.