How to File a Lawsuit for False Credit Reporting
False credit reporting typically results from an oversight or mistake on the part of one of your creditors. Should that creditor fail to correct the mistake in a timely manner, however, it will be in violation of the Fair Credit Reporting Act. The FCRA gives you the legal right to file a lawsuit against any creditor who fails to correct information on your credit report after being provided proof that the information was reported in error.
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Instructions
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Compile any documentation that proves the information the creditor is reporting to the credit bureaus is inaccurate. For example, if the creditor is reporting that you made a late payment when your payment was received and processed on time, a copy of the bill and the canceled check proves the error.
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Notify the creditor in writing of the mistake and provide it with copies of the paperwork that proves the error. Give the creditor 30 days to correct the mistake on your credit reports.
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Keep copies of the original documentation that you mailed as proof to your creditor, a copy of the letter you sent demanding the removal of the inaccurate information and copies of any letters the creditor sent to you in response. For a successful lawsuit, you must be able to prove that the creditor was informed that the information was inaccurate and given ample time to correct the error prior to being sued.
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Examine your credit records from all three credit bureaus, Experian, Equifax and TransUnion. If the creditor has not corrected the records, you may proceed with the lawsuit.
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Visit your county clerk's office and fill out a summons and complaint. Some county courts provide these forms on their websites. After the summons and complaint are complete, the clerk will assign the initial hearing date. The creditor will be notified of the lawsuit via a copy of the summons and complaint.
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Tips & Warnings
Few creditors want to go through the expense of defending themselves in court over a credit reporting error. Most will offer to remove the entry from your credit report in exchange for your agreement to drop the lawsuit.
You can report a creditor to the Federal Trade Commission in addition to filing your lawsuit. If the FTC finds that the creditor is habitually violating the FCRA, the creditor risks fines and other disciplinary action.
