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Credit Report Errors

Credit report errors are far too common and the incidence of inaccuracies on credit reports is corroborated by the Consumer Financial Protection Bureau (CFPB). According to the CFPB, credit report errors is the number one complaint and more than any other type of financial product or service.

The number of credit errors is a major problem for consumers, especially because derogatory errors can negatively impact a consumer’s credit score. In other words, false negative credit information on a consumer’s credit report will lower the consumer’s credit score. 

What’s the Big Deal About Credit Errors? 

Consumers who have credit report errors may be denied credit or pay more for credit. For example, using the FICO credit scorer simulator, a credit payment mistakenly reported as 90 days past due may reduce a consumer’s credit score by as much as 133 points. That also means a consumer’s FICO score could drop from a “Very Good” credit rating to a “Fair” credit rating, which means the consumer may not be approved for credit, or, if approved, then the consumer must pay a higher interest rate or down payment, or both.  

Here’s the math. On a $400,000 mortgage, a 133 credit FICO score drop may increase the interest rate by over a half a point, e.g., .5% interest higher, which will increase the monthly payment by over $150 per month. Over the life of the loan, the consumer will pay more than $ 50,000 more for the same loan amount!

How are Credit Scores Calculated?

A FICO Score is a three-digit number based on the information in your credit reports. It helps lenders determine how likely (or unlikely) you are to repay a loan. This, in turn, affects how much money you can borrow, how many months you must repay the loan, and how much in interest the loan will cost you.

In America, when you apply for credit, lenders typically determine whether to loan you money, and if so at what interest rate, based on your credit score. A credit score is essentially a number that represents a summary of the information on your credit report. The credit score is based on how long you’ve had credit, how much credit you have, how much of your available credit is being used, on time payment history, and applications for new credit (hard inquiries). The FICO algorithms (FICO has numerous score models) evaluate the information on a credit report and generate a consumer’s credit score based on the information on the consumer’s report on that date and time. Different factors impact a consumer’s FICO credit score according to the percentages listed below:

According to FICO, 90% of the top lenders use FICO scores. Learn more about FICO Scores. 

Contact us for a free credit report case review at (214) 974-4030.

Dispute Credit Report Errors

What should you do if you have credit report errors?  Consumers who have errors on credit reports should dispute any inaccurate information on their reports. Under the Fair Credit Reporting Act (FCRA), consumers have the right to dispute any inaccurate items of information on their credit reports. Inaccurate information can include accounts, including collection accounts, but other items may include names, addresses, phone numbers, employers, soft and hard inquiries. 

We recommend that disputes are sent by mail to the nationwide consumer reporting agencies, Equifax®, ExperianTM, and Trans Union®. The dispute letter should include information identifying the consumer making the dispute and a description of what information is being disputed and the reason why the information is inaccurate. Free sample credit report dispute letter. 

Credit Report Errors Cause Harm

Credit errors cause consumers to suffer financial and emotional harm. Credit denials are often the result of credit report errors. Likewise, consumers that are approved for credit but have errors on their credit reports, may be approved for a lower credit limit and at a higher interest rate. As a result, consumers feel stress and anxiety when they are unable to get approved for credit or must pay more money credit in high interest fees. Do you want an 800 credit score? Check this article out.

If you have errors on a credit report, then you will also have to expend a substantial amount of time to dispute inaccurate items. Sometimes, consumers make numerous disputes before inaccurate information is removed (if at all) from their reports. For other consumers, the credit bureaus may refuse to delete or simply perform inadequate investigations, which result in the continued reporting of false and derogatory information. Attorney Mr. Adkins says, “a federal lawsuit, is a federal right given to consumers under the FCRA, and it is often the last hope for consumers to make the credit bureaus stop reporting false information about them.” This is partly because federal legislators understood regulation and government agencies can rarely adequately protect consumers. Instead, filing a private lawsuit against Equifax®, ExperianTM, and Trans Union® is a tool available to private attorney generals, such as Mr. Adkins, to reclaim your good name from some of the largest companies in the world. 

How Much Does It Cost to Hire an FCRA Attorney?

The Adkins Firm represents clients under the FCRA and other consumer protection statutes. We do not charge our clients for a case consultation or an upfront attorney fee to begin our legal work to help our clients. The consultation is completely free. We often use much of the time to educate our clients about the FCRA, including rights and remedies available to consumers who have credit report errors. 

Likewise, after the consultation, our clients will only pay an attorney fee if we recover monetary relief on their behalf. That means if we do not recover money damages for our clients, then our clients will not receive a bill from us for our time or expenses. This is known in the legal industry as a contingency arrangement because the lawyer’s fees are contingent on a money recovery. No recovery, then no fees. 

We can represent our clients on a contingency basis because when congress wrote the FCRA, it included a one-sided fee shifting provision. The federal law provides that our FCRA attorneys can recover their reasonable attorneys’ fees if we successfully prosecute our clients’ claims and receive a judgment in favor of the plaintiff.See 15 U.S.C. §§ 1681n and o.  

Contact us for a free case review at (214) 974-4030.

Thousands of consumers every year file a lawsuit against Equifax®, ExperianTM, and Trans Union® to clear their name and remove errors from their credit reports. FCRA attorney Micah Adkins has filed hundreds of lawsuits on behalf of consumers under the FCRA in federal courts across the U.S.  According to Mr. Adkins, “I have represented hundreds of consumers in federal court with credit report errors who come to me with a sense of helplessness because the false information is ‘verified’ repeatedly by the credit bureaus and remains on their reports.”

Hire an Experienced FCRA Attorney

We recommend contacting The Adkins Firm before making a dispute with the credit bureaus. Working with a skilled and experienced FCRA attorney streamlines the process from step one through to filing a lawsuit (if that ends up being necessary to protect your rights). If the credit bureaus verify inaccurate information on your credit reports or refuse to delete disputed items of information, having a trusted legal resource, like The Adkins Firm legal team, in your corner will benefit you exponentially when it comes time to take the credit bureaus to task and hold them accountable for the harm caused to your reputation.

What do you have to lose?  

The FCRA includes a statute of limitations that may bar you from recovering for your damages. The statute of limitations under the FCRA period is 2-5 years. 15 U.S.C. § 1681p. Also, the statute of limitations begins to run when the consumer discovers the violation. Don’t wait to speak with our FCRA attorneys for a free consultation and preserve your legal claims before they expire. 

Our Firm

The Adkins Firm represents consumers who have errors on background and tenant screening reports. We help our clients clear their names with the credit bureaus, banks, and collection agencies. 

Do you have errors on a credit report?  Have you disputed the error and the inaccurate information was verified by the credit bureau that the disputed information is accurate? If you answered yes, then you may have a claim under the FCRA. 

Contact us for a free case review at (214) 974-4030.