Common FCRA Violations & Damages

Here are some of the most common violations of the Fair Credit Reporting Act (FCRA) by credit bureaus, lenders, and other entities:

• Not investigating disputes: Failure to reasonably investigate consumer disputes regarding inaccurate or incomplete information on their credit report.
• Inaccurate reporting: Reporting of incorrect, unverified, or obsolete information that harms a consumer’s creditworthiness.
• Accessing credit reports without permission: Accessing someone’s credit report without proper authorization or permissible purpose.
• Failure to disclose: Not providing required disclosure that consumer’s credit report is being accessed, or failing to disclose consumers’ rights under the FCRA.
• Mixed file errors: Mixing information belonging to one consumer with another consumer’s file due to insufficient identification procedures.
• Outdated negative items: Leaving adverse information like late payments or collections on credit report beyond the maximum reporting period.
• Not notifying consumers: Failure to notify consumer when information in report results in denial of credit or other negative actions.
• Sharing reports with unauthorized parties: Providing credit reports to unauthorized individuals like employers without consent.
• Medical debt errors: Reporting medical debts without noting the source of debt or before reasonable validation.
• Opt-out violations: Not honoring consumer requests to opt out of promotional inquiries or prescreened credit offers.
• Improper use of credit scores: Using credit scores for unauthorized purposes like setting insurance rates or making employment decisions.

Here are some of the common types of damages that may be awarded to plaintiffs for violations of the Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA):

FCRA Damages:

• Actual damages: Out-of-pocket losses from the FCRA violation. For example, lost job opportunity.
• Statutory damages: $100 to $1,000 for violations related to credit reports, $1,000 for willful violations.
• Punitive damages: Awarded in cases of deliberate or reckless FCRA violations. No set limits.
• Attorney fees and costs: Provided for under the FCRA if the consumer prevails in a suit.
• Recovery for emotional distress: Damages awarded for mental anguish, stress, or other emotional troubles.
• Corrective action: Requires violators to remedy mistakes or inaccuracies in credit reports.