Your credit report can have a significant impact on your financial future. Whether you are applying for a mortgage, financing a vehicle, renting an apartment, or even applying for certain jobs, businesses often rely on the information contained in your credit report to make important decisions. When a credit reporting agency fails to maintain accurate information or properly investigate a dispute, the consequences can be costly.

Fortunately, federal law gives Wisconsin consumers the right to challenge inaccurate credit reporting and, in certain situations, file a lawsuit against a credit reporting agency. Understanding when legal action is appropriate and how the process works can help you protect your financial reputation.

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 Agency?

A credit reporting agency, also known as a credit bureau or consumer reporting agency, collects and maintains information about consumers' credit histories.

The three nationwide credit reporting agencies are:

• Equifax
• Experian
• TransUnion

These companies receive information from lenders, credit card companies, collection agencies, and other businesses to create consumer credit reports that are used throughout the lending industry.

Why Would Someone Sue a Credit Reporting Agency?

Not every mistake on a credit report results in a lawsuit. However, consumers may have legal claims when a credit reporting agency fails to meet its legal obligations under the Fair Credit Reporting Act (FCRA).

Common reasons for lawsuits include:

Failure to Correct Inaccurate Information

If you notify a credit reporting agency that information on your credit report is incorrect and it fails to conduct a reasonable investigation or correct the error, legal action may be appropriate.

Examples include:

• Accounts that do not belong to you.
• Incorrect balances.
• Wrong payment histories.
• Duplicate accounts.
• Incorrect personal information.
• Identity theft accounts.

Failure to Conduct a Reasonable Investigation

When you submit a dispute, the FCRA requires credit reporting agencies to investigate the disputed information.

An investigation that is superficial, incomplete, or unreasonable may violate federal law.

Reporting Information Known to Be Incorrect

A credit reporting agency has a duty to follow reasonable procedures to assure the maximum possible accuracy of the information it reports.

If inaccurate information continues to appear despite evidence showing it is incorrect, a consumer may have legal rights.

Failure to Remove Outdated Information

Certain types of information generally cannot remain on a credit report indefinitely.

If outdated information continues to appear after it should have been removed, legal remedies may be available depending on the circumstances.

Identity Theft Reporting Problems

Victims of identity theft often experience fraudulent accounts appearing on their credit reports.

If a credit reporting agency fails to properly investigate or correct identity theft-related reporting errors, legal action may become necessary.

What Law Protects Wisconsin Consumers?

Most lawsuits against credit reporting agencies are brought under the Fair Credit Reporting Act (FCRA), a federal law that governs how consumer reporting agencies collect, maintain, investigate, and report credit information.

The FCRA gives consumers the right to:

• Obtain copies of their credit reports.
• Dispute inaccurate information.
• Receive the results of investigations.
• Have reasonable investigations conducted.
• Seek damages when violations occur.

In some situations, Wisconsin consumers may also have additional rights under state consumer protection laws depending on the facts of the case.

How Do You Sue a Credit Reporting Agency?

Before filing a lawsuit, consumers should generally take steps to document the problem and attempt to resolve it through the dispute process.

Step 1: Obtain Your Credit Reports

Review your reports carefully for:

• Incorrect accounts.
• Incorrect balances.
• Duplicate reporting.
• Personal information errors.
• Identity theft activity.

Step 2: Submit a Written Dispute

Notify the credit reporting agency in writing and explain:

• What information is incorrect.
• Why it is inaccurate.
• What correction should be made.

Include supporting documentation whenever possible.

Keeping copies of all correspondence is important.

Step 3: Review the Investigation Results

After receiving your dispute, the credit reporting agency is generally required to investigate and provide the results.

If the inaccurate information remains without a proper investigation, additional legal options may be available.

Step 4: Consult a Consumer Protection Attorney

A consumer protection attorney can review:

• Your credit reports.
• Dispute letters.
• Investigation responses.
• Supporting documentation.
• Evidence of financial harm.

The attorney can determine whether the facts support a lawsuit under the FCRA or other applicable laws.

What Damages May Be Available?

Depending on the circumstances, consumers may be entitled to recover:

• Actual financial damages.
• Compensation for certain emotional distress.
• Statutory damages for certain violations.
• Punitive damages for willful violations.
• Attorney's fees and court costs where authorized by law.

The damages available depend on the specific facts of the case and the type of legal violation involved.

How a Consumer Protection Attorney Can Help

Credit reporting lawsuits often involve complicated federal laws, technical legal standards, and detailed documentation.

A consumer protection attorney can assist by:

• Reviewing your credit reports.
• Identifying possible violations of the FCRA.
• Communicating with credit reporting agencies.
• Gathering evidence.
• Filing a lawsuit when appropriate.
• Seeking compensation for damages caused by inaccurate reporting.

Having legal representation can help ensure your rights are protected throughout the process.

Don't Ignore Credit Reporting Problems

Many consumers assume that credit reporting errors will eventually correct themselves. Unfortunately, that is often not the case.

The longer inaccurate information remains on your credit report, the greater the risk of:

• Loan denials.
• Higher interest rates.
• Housing difficulties.
• Insurance issues.
• Damage to your financial reputation.

Taking prompt action can help minimize these consequences.

Conclusion

Credit reporting agencies play an important role in consumers' financial lives, but they also have legal responsibilities. When a credit reporting agency fails to investigate disputes or continues reporting inaccurate information, Wisconsin consumers may have the right to pursue legal action under the Fair Credit Reporting Act.

If your credit report contains errors that have not been corrected despite your efforts, speaking with a Wisconsin consumer protection attorney can help you understand your rights and determine whether legal action is appropriate.

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