Your credit report plays an important role in your financial life. Lenders, landlords, insurers, and even some employers may review your credit history when making decisions about loans, housing, insurance rates, or employment. When a credit reporting company includes inaccurate information on your credit report, the consequences can be significant. You may be denied credit, pay higher interest rates, lose housing opportunities, or experience damage to your financial reputation.

Fortunately, federal law provides consumers with important rights when credit reporting agencies fail to maintain accurate credit information. If a credit reporting company does not correct errors after being properly notified, you may have legal remedies available.

This article is for informational purposes only and does not constitute legal advice. Reading it does not create an attorney-client relationship. For guidance specific to your situation, consult a licensed Wisconsin attorney.

What Is a Credit Reporting Company?

Credit reporting companies, also known as credit bureaus or consumer reporting agencies, collect and maintain information about consumers' credit histories.

The three nationwide credit reporting agencies are:

• Equifax
• Experian
• TransUnion

These companies gather information from creditors, lenders, collection agencies, and public records to create consumer credit reports.

Why Credit Report Errors Matter

Errors on a credit report can have serious financial consequences.

Common problems include:

• Accounts that do not belong to you.
• Incorrect balances.
• Duplicate accounts.
• Fraudulent accounts resulting from identity theft.
• Incorrect payment histories.
• Accounts that should have been removed.
• Incorrect personal identifying information.

Even a single inaccurate account may affect your ability to obtain financing or favorable credit terms.

Your Rights Under the Fair Credit Reporting Act

The federal Fair Credit Reporting Act (FCRA) gives consumers the right to dispute inaccurate or incomplete information appearing on their credit reports.

Under the FCRA, consumers generally have the right to:

• Obtain copies of their credit reports.
• Dispute inaccurate information.
• Have disputes reasonably investigated.
• Receive notice of the results of an investigation.
• Seek legal remedies when violations occur.

The FCRA requires credit reporting agencies to follow reasonable procedures to assure the maximum possible accuracy of consumer information.

The Importance of Filing a Written Dispute

Before filing a lawsuit, it is often important to submit a written dispute directly to the credit reporting company.

A dispute should generally:

• Clearly identify the inaccurate information.
• Explain why the information is incorrect.
• Include supporting documentation when available.
• Request correction or removal of the inaccurate information.

Maintaining copies of all correspondence can become important if litigation later becomes necessary.

When Can You Sue a Credit Reporting Company?

Not every credit report error automatically results in a lawsuit.

However, legal action may become appropriate when a credit reporting company:

• Fails to conduct a reasonable investigation.
• Continues reporting information known to be inaccurate.
• Fails to correct verified errors.
• Violates other obligations imposed by the FCRA.

Each case depends on its specific facts, including the nature of the disputed information and the actions taken by the credit reporting company.

Potential Damages

Depending on the circumstances, consumers who successfully pursue claims under the FCRA may recover damages such as:

• Actual financial losses.
• Emotional distress damages where permitted by law.
• Statutory damages in certain cases.
• Punitive damages for willful violations.
• Reasonable attorney's fees and court costs where authorized.

The availability of damages depends on the facts of each case and the type of violation alleged.

Evidence That May Help Your Case

Documentation is often critical when pursuing a credit reporting claim.

Helpful records may include:

• Copies of your credit reports.
• Written dispute letters.
• Certified mail receipts.
• Responses from the credit reporting company.
• Account statements.
• Identity theft reports, if applicable.
• Correspondence with creditors or debt collectors.

Well-organized documentation can help demonstrate both the existence of the error and the steps you took to resolve it.

Wisconsin Consumers May Have Additional Protections

Although most lawsuits against credit reporting agencies are brought under the Fair Credit Reporting Act, Wisconsin consumers may also have rights under certain state consumer protection laws depending on the circumstances.

An attorney can evaluate whether additional legal claims may be available based on the specific facts of your case.

Why Hiring a Consumer Protection Attorney Can Help

Credit reporting litigation can involve complex federal laws, technical legal standards, and detailed factual issues.

An experienced consumer protection attorney may help by:

• Reviewing your credit reports.
• Evaluating whether legal violations occurred.
• Gathering supporting evidence.
• Communicating with credit reporting agencies.
• Filing and litigating a lawsuit when appropriate.
• Seeking available damages and attorney's fees.

Many attorneys who handle Fair Credit Reporting Act cases offer consultations to evaluate whether a viable legal claim exists.

Conclusion

Credit reporting companies have a legal obligation to maintain accurate information and to investigate consumer disputes as required by federal law. When inaccurate information remains on a credit report despite proper disputes, Wisconsin consumers may have the right to pursue legal action under the Fair Credit Reporting Act.

If incorrect credit reporting is affecting your financial opportunities, understanding your rights and acting promptly can help protect your credit history and your financial future.

Attorney Nathan DeLadurantey offers free consultations to explain your legal rights in Wisconsin. Free consultations can be scheduled online.