What are the most common errors on a credit report that lead to FCRA claims — and resulting damages?
- Status Disputes – error/inaccuracy standards which give rise to valid disputes:
- these are things that are factually inaccurate such as:
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- reporting a settled account as past due/open;
- reporting a discharged account with a balance owed;
- reporting the dates of first delinquency as the date of the charge off or foreclosure which extends the time on the report;
- Re-aged accounts;
- and reporting a trade line twice.
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- Technically accurate, but materially misleading.
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- Reporting an old medical debt as late and unpaid when an insurance company failed to pay its contractual obligation;
- reporting a delinquency when the failure to pay was caused by the creditor – such as payment credited to the wrong account.
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- Mixed/Merged Files – pre-screened offers, variations of names/socials.
- ID Theft – unauthorized inquiries, pre-screened offer, history or account client doesn’t recognize.
- Reinsertion – previously deleted accounts require notice to the consumer w/i 5 business days of the reinsertion.
- Impermissible Purposes – pulling credit to determine collectability before filing a lawsuit on an involuntary debt such as a personal injury; employers or landlords pulling credit without express authorization; credit pulls after a bankruptcy discharge.
The best place to pull your credit is annualcreditreport.com from their website. While a consumer is entitled to a free report annually, until July 31, 2020 under the COVID relief, these reports are available for free on a weekly basis.