Credit Reports are a component of a scheme that provides information to banks about prospective borrowers and their creditworthiness. These records are a good way to consider a prospective borrower's past and payment history before making a decision. Many companies rely on this sort of material, which is typically issued by customer reporting services or the credit bureau, to make lending and other credit decisions.
Credit report mistakes are common.
Credit records, on the other hand, may include mistakes that can do significant harm to customers and their personal reports.
Inaccurate results may be disastrous for customers. Good credit saves borrowers money by resulting in credit options at lower interest rates, while mediocre credit results in a variety of drawbacks, including high interest rates on mortgages, vehicle loans, and credit cards, as well as loan rejection. In certain circumstances, a person can be denied jobs or rental opportunities.
Despite the fact that these credit report mistakes are fairly widespread, many customers are unaware that they exist and that they have the legal right to have the facts corrected. Consumers who have substantial mistakes in their credit records may be entitled to compensation in certain circumstances.
What Causes Credit Report Errors?
Credit report errors can occur for a number of reasons, including:
- When files are mixed or combined, a consumer reporting agency (CRA) can create errors. This may happen when people with identical titles, emails, or other identifiers get their files accidentally combined.
- Often times, creditors can inadvertently misreport details about a borrower, such as reporting a late payment when it was actually paid on time or reporting an inaccurate balance.
- Identity fraud is another potential source of credit report mistakes. Creditors can record facts about a customer that seems to be right, even though the consumer was not liable due to identity fraud.
The federal legislation mandates credit reporting agencies to enforce policies to maintain the “maximum practicable accuracy” of information found in credit reports. Where incorrect evidence is identified, CRAs are expected to investigate and correct any problems or anomalies.
When CRAs fail to follow this requirement or disclose incorrect facts, the Fair Credit Reporting Act (FCRA) has ways to keep customers safe and correct the errors; however, consumers must take steps to ensure that the errors are corrected.
How can we assist?
Hiring an attorney may assist with sorting out the mistakes and restoring the accuracy of an inaccurate credit report. Under certain cases, you would not be required to pay attorney's fees and they can be covered as part of a claim. In this case, you are legally secured. If you have a competent solicitor by your side, you will have your credit report mistakes corrected and obtain rewards.
Our associate lawyers will assist you in correcting credit report errors and litigating disputes where the FCRA is not followed or errors are not corrected. Since this can include litigation, it is a smart thing to have a professional solicitor from our team at your side to ensure that the necessary modifications are made and that you get the restitution to which you may be entitled.