Suing a Creditor for Incorrect Reporting and Winning
A credit report is a statement of how well you manage credit. Errors in your credit report can undermine your credibility and give lenders the wrong impression. For example, financial institutions may reject your mortgage application, landlords may refuse to rent to you, and phone companies may deny you a contract.
The Fair Credit Reporting Act (FCRA) is in place to protect consumers from inaccurate credit reports. For example, in 2013, Julie Miller sued her creditor for incorrect reporting and was awarded $18.4 million in damages.
This article will discuss common FCRA violations, how you can sue a creditor for inaccurate reporting in small claims court without paying for an attorney, and receive up to $10,000 in compensation with DoNotPay.
What are Fair Credit Reporting Act (FCRA) Violations?
There are a number of FCRA violations for which you can sue a creditor in a small claims court.
| Violations | Explanations |
| Old information being refurbished as new | When your credit report does not reflect the corresponding changes in your credit circumstances. For instance, reporting old debts as new debts, or reporting payments made on time as late payments |
| Violations of debt dispute procedures | When a dispute is made, the credit bureau is responsible for following outlined procedures to address the dispute. This includes noting the dispute, ceasing from registering inaccurate information, conducting an investigation, and correcting inaccuracies. |
| Violation of privacy | Although your credit records can be shown –with your consent –to relevant entities like employers and insurance agencies, the credit bureau should make sure your information cannot be accessed by anyone else. Violations of privacy include making your report accessible to relevant entities without your consent. |
| Withholding notice | Creditors must give you notice when they produce any reports on your credit, or make your report available to another party. |
How Does the FCRA Protect My Rights?
The FCRA covers your rights as a consumer and gives you legal backing to sue creditors for incorrect reporting. Specifically, you have right to:
- Know what information is in your file
- Request a copy of transaction records if you have been a victim of identity theft
- Request free annual credit report from every national credit bureau
- Dispute any inaccurate information in your credit report
- Request correction and/or removal false information in your credit report
- Refuse to share your credit report
Step-by-Step Guide for Suing a Creditor
If you found errors in your credit report, follow these steps to protect your rights:
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- Contact the creditor. Before making an official complaint, contact the creditor about the error. Ask the creditor to correct your report.
- File a report with the Credit Reporting Agency (CRA). If the necessary corrections are not made after alerting the creditor, take it up with officials in the agency. Let them know of the creditor’s inaction and give them a chance to resolve errors in-house.
- File a report with the Consumer Financial Protection Bureau (CFPB). If the agency fails to respond appropriately to your complaint, contact the CFPB to assist you. The CFPB will urge agencies to rectify the errors in your report. If the CFPB cannot facilitate resolution, it’s time to take creditors to the small claims court.
- File a claim with your local small claims court. Present all the evidence to support your claim. Fill out relevant forms. Submit the required number of copies to your small claims court clerk.
- Serve a demand letter to your creditor.
- Prepare for court. If the credit agency does not settle the damages caused, proceed to prepare for a trial.
- Show up for court and make your case.
Sue a Creditor in Small Claims Court Through DoNotPay
has simplified the process of suing your credit company for incorrect reporting. You can protect your rights in 4 simple steps:
- Log in to and select the Sue Now Product
- Enter the amount you are owed in dollars
- Select one option between getting a demand letter or court filing forms.
- Give a detailed description of your claim including all evidence like reports or photos
That’s all you have to do! DoNotPay will generate a demand letter and fill in all the forms for your claim. The robot lawyer will also mail your demand letter to the creditor on your behalf!
DoNotPay is Your Personal Lawyer
Aside from suing a creditor for incorrect reporting, DoNotPay can help you with day-to-day issues from cancellation of subscriptions to appealing parking tickets. Take a look at what else the robot lawyer can offer:
- Sue Robo Callers
- Generate an LLC Agreement in less than 5 minutes
- Stop harassment from your landlord
- Find Unclaimed Property and Money in your name
- File a lawsuit against AT&T
- Take legal action against Uber
- Sue Verizon
- File a suit against a company without a lawyer in small claims court
- File a claim against insurance companies
- Sue an airline