Fair Credit Reporting Act

• The Fair Credit Reporting Act is the federal law that lays out your rights when it comes to dealing with creditors and credit bureaus. You have the right to sue those who violate the FCRA in federal court. This can be a credit reporting agency, someone who uses the reports, or the person or business that supplied information to the credit reporting agency. In addition to the FCRA, many states have their own laws related to credit reporting and consumer protection. Some enforce the FCRA. If the damage done to you was the result of identity theft, you have additional rights.
  
  

Fair Debt Collection Practices Act

• The Fair Debt Collection Practices Act is another legal tool meant to protect consumers from damage to their credit and reputation because of illegal debt collection practices. If the damage to your credit report or reputation is because of inaccurate information being supplied to the credit agency or abusive practices, this law may help you. While it generally protects against creditors and collection agencies harassing debtors, there are provisions that make it illegal for either to call your employer or landlord about your debt. It also requires creditors and collection agencies to validate any debt before sending it to the credit reporting agency.
  
  

Types of Lawsuits

• The type of lawsuit you file depends on which of your rights was violated. Under the FCRA, you have the right to the information in your file. You must be told if it was used against you. Credit reporting agencies must use up-to-date and accurate information. They must delete inaccurate information. Of the main credit damage suits, "false, inaccurate or derogatory reporting" claims are the most popular. It is difficult to get damages in these cases unless you have paid a debt and the incorrect information was kept on your credit report. Next would be "mistaken or false identity" claims. If you have proven the agency had the wrong person or shown that you are a victim of identity theft and the credit reporting agency or credit refuses to remove the derogatory report, you can sue.
  
  

Preparing to File Suit

• Before filing suit, make sure you have exhausted all your alternatives and kept good records of your efforts. Keep a log of all phone calls and copies of any letters you send. Make sure you have disputed all your claims with the credit reporting agency and kept copies of the correspondence. Additionally, you need any evidence proving the agency or creditor is in the wrong.