What is on your credit report is important. The information can impact your ability to get approved for a mortgage, your interest rates, and many other aspects of life. The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer credit information is collected, shared, and used. Under the FCRA, consumers can sue:
- Credit reporting agencies; and
- Furnishers of information.
The category of “furnishers of information” includes both the original creditor and any third-party debt collectors. You have the right to sue a debt collection agency for violating your FCRA rights. Here, our consumer protection attorney discusses the most notable points to understand about holding a debt collector legally responsible for an FCRA violation.
An Overview of Your Rights Under the FCRA
Under the FCRA, consumers have the right to access their credit reports, dispute any inaccuracies, and expect fair treatment from companies that handle financial data. Debt collectors who report incorrect information to credit bureaus must investigate disputes and correct errors. They cannot knowingly report false or outdated debt. If a debt collector violates these rules—such as failing to correct inaccurate information—a consumer can hold them accountable.
Third-Party Debt Collectors May Be Held Liable for FCRA Violations
Creditors and third-party debt collectors are furnishers of information. The FCRA applies to them, and they can also be held liable for violations of the law. Indeed, if a debt collector furnishes false information to a credit bureau and fails to correct it after a dispute, they may be in violation of federal consumer rights law. A consumer can sue a debt collection agency for an FCRA breach.
Remedies for Consumers Who an FCRA Claim Against a Debt Collector
If a debt collection agency violates your rights under the FCRA, you may be entitled to several remedies. You can file a dispute with the credit bureau to correct inaccuracies and report the debt collector to regulatory agencies like the Consumer Financial Protection Bureau (CFPB). If the violation caused financial harm, you can file a civil lawsuit seeking compensation for damages. Consumers have a right to seek financial compensation for the full value of their actual damages.
You May Have a Claim Against a Debt Collector Under an Alternative Law (FDCPA)
Beyond any FCRA claim, a consumer who has been subject to unfair treatment by a debt collection agency may also have an additional claim under the Fair Debt Collections Practice Act (FDCPA). The FDCPA is a federal law that protects people against debt collection harassment. If you have any questions about an FDCPA claim, an experienced attorney can help.
Contact Our Consumer Protection Attorney Today
At The Kim Law Firm, LLC, our consumer protection lawyer has the knowledge, experience, and integrity that you can trust. If you have any questions about bringing a claim against a third party debt collector under the FCRA, we are here as a legal resource. Contact us today for a free, completely confidential initial consultation. We are committed to protecting the rights of consumers against unfair actions by debt collectors and credit reporting agencies.
