THE NO JOB LIFESTYLEWhen a lawyer makes sense
- You disputed an error with proof, and it was verified anyway.
- A removed item came back without the required notice.
- You were denied credit, housing or a job because of a mistake.
- Your file is mixed with someone else's, and the bureau will not separate it.
- Identity theft items stay on your report after you sent proof.
- A collector harasses you, lies or sues over a debt you do not owe.
For a simple first error, you usually do not need one. Most routine disputes can be started on your own at no cost.
What the law allows
Under the Fair Credit Reporting Act, if a bureau or furnisher willfully violates the law, you can seek actual damages or statutory damages of $100 to $1,000, along with possible punitive damages and attorney fees. For negligent violations, you can recover actual damages and attorney fees. The deadline to sue is the earlier of two years after you discovered the violation or five years after it occurred.
The Fair Debt Collection Practices Act covers third party collectors. It allows actual damages, up to $1,000 in additional damages per case and attorney fees, and you generally have one year from the violation to sue.
Build your paper trail first
Lawyers can act faster when your records are complete. Save these items:
- Dated credit reports showing the error.
- Copies of all dispute letters and certified mail receipts.
- The results letters from each bureau.
- Denial letters from lenders or employers.
- Notes on calls, with dates and names, plus any voicemails, as allowed by your state's recording rules.
Furnishers have a duty to investigate after a dispute through a bureau, and that duty is usually what makes a suit possible. So dispute through the bureau first, as well as directly, if you think you may need legal help.
How fees usually work
Many consumer attorneys take strong FCRA and FDCPA cases on a contingency basis or collect their fees from the other side when a case wins, since those laws shift fees to the defendant. Consultations are often free. Ask about costs in writing before signing, including what happens if you lose.
To find someone, search your state bar's referral service or the National Association of Consumer Advocates directory. Legal aid may help if your income is limited.
Lawyer or credit repair company?
A credit repair firm mainly handles paperwork and disputes. A lawyer can give legal advice, send formal demands and file suit. Some attorney-run firms offer both, and they still have to follow the rules that apply to them. We suggest you ask whether the person handling your file is actually licensed and whether they will represent you in court if needed. This page is general information and not legal advice.
Questions people ask
Can you sue a credit bureau for an error?
Yes, if it fails to follow the law, such as by not doing a reasonable investigation. Disputing first creates the record that usually supports a case.
How much does a credit dispute lawyer cost?
Many charge the client little upfront because the law can require the losing defendant to pay fees. Costs vary, so get the arrangement in writing.
What if the deadline has passed?
Each new violation may start a new clock, depending on the facts. Speak with an attorney as soon as you can, because the time limits are strict.