How to Sue the Credit Bureaus for Posting False Information
Technically an individual cannot sue a credit bureau. This is very frustrating but the laws stated by the FCRA (Fair Credit Reporting Act) state only a state attorney general has the authority to sue a credit bureau, but this is America and there are ways to sue privately. You will need to find a good attorney willing to take on your case, and you will need a provable case.
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Instructions
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What is the Issue?
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Verify inaccurate information on your credit report. You will need this in order to even begin considering a claim of any kind. This is quite easy to do. Once you have been turned down, a credit card has changed its terms based on a recent review of your credit report or you are turned down by a loan, you have the legal right to ask for a free copy of all your credit reports. These are listed in the Resources below.
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Check each report to see if you are able to find any errors. You may recognize a charge, in which case you will have to go straight to the creditor and argue with them. It may be a charge that has run its statute of limitation, or you may never have been informed of the charge. If this is the case please see the References for the FRCA website. The FCRA clearly explains the rules, which include the right to sue them for $1,000 for each infraction they have made on their own rules, such as not informing you of a delinquent balance, or in the case of collection agencies simply placing it on your credit report without informing you. You will need to know this to successfully argue with the vendor, the entity providing the service, be it a collection agency or bank or any lender or provider.
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Go to your provider if you find a legitimate blemish on your credit report. This may be a hospital, a collection agency, a creditor or anyone that has the right to report to credit bureaus. Legitimate blemishes are the most difficult and may require you prove someone fraudulently used your identity. In this case, work very hard with the creditor and fill out forms and if it is a collector. Also inform them it was fraud and write a cease and desist letter and seek legal advice on identity fraud. A police report is also valuable.
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Get a letter from the company from whom the blemish originates and send it to the credit reporting bureau. Do this if, after exhausting all previous steps, no proof of the blemish can be found. The credit bureau should cooperate, but if they do not, seek a lawyer. Though traditionally only the state attorney is able to sue these agencies, this no longer is the case and you will need to find a lawyer that specializes in credit issues in your area for a referral. In Texas, one man did individually sue a credit bureau (see References), and it is becoming more common all over the country.
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Tips & Warnings
If it is a collection agency partial payment should be fine. The agency bought the debt for pennies on the dollar, so tell them what you can afford and tell them you will send them the money when they send you a release and agreement to remove the negative information pending payment. Save your credit card statement or your check in this case to later prove the agreement if need be to the credit reporting agency.
A common scenario is that there may in fact be a delinquent account that your child, spouse, ex-spouse or someone else made. You will still be responsible for this. Keep that in mind and try and negotiate removal of the negative information in return for payment, in part or full, for the debt.
References
Resources
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