Yes — and this is the heart of our practice. If you want the full picture of how an FCRA lawyer holds collectors and credit bureaus accountable — and why it costs you nothing unless you win — start there, then read on for the specifics.
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 They cannot knowingly report false or outdated debt.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.
What the federal data says about disputes and the credit bureaus
Whether a case is worth bringing usually turns on what happened after you disputed. The federal record on that is unusually specific.
- Roughly 3.9 million complaints were filed against Equifax, Experian and TransUnion between January 1, 2024 and June 30, 2025. Of about 4.6 million complaints sent to nationwide reporting agencies in that window, some 52 percent were covered complaints under Section 611(e) of the FCRA. Source: CFPB, Annual Report of Credit and Consumer Reporting Complaints, December 2025.
- About 90 percent of consumers said they had already disputed the information before complaining. The bureaus confirmed a prior dispute far less often: Equifax at 37 percent and TransUnion at around 30 percent. Source: CFPB, Annual Report of Credit and Consumer Reporting Complaints, December 2025.
- Response times differed by bureau. TransUnion averaged around 40 days, while Experian consistently ran close to the full 60-day limit. Source: CFPB, Annual Report of Credit and Consumer Reporting Complaints, December 2025.
- Credit and consumer reporting is the largest complaint category the CFPB handles: about 5,806,800 of roughly 6,635,400 complaints in 2025, or 88 percent, with incorrect information on a report the most common issue. Source: CFPB, 2025 Consumer Response Annual Report, March 2026.
- Among consumers whose disputes went unresolved, nearly 70 percent still believed the information was wrong, and half planned to abandon the dispute. Source: Federal Trade Commission follow-up study, January 21, 2015.
The gap in the second figure is the one that matters if you are weighing a claim. Nine in ten people complaining to the CFPB say they disputed first; the bureaus record a prior dispute in roughly a third of cases. Whatever explains that gap, it is the reason the practical answer to whether you can sue so often comes down to what you kept: the dated dispute letter, the proof of delivery, the response you received, and the report showing the entry still there afterwards.
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.
Dealing with a debt collector?
The Kim Law Firm helps consumers with debt collector harassment under the FCRA and FDCPA. Get a free case review or call 855-996-6342 — you pay nothing unless we win.
Identifying the right defendant before you file
One collection account can involve three separate companies: the original creditor that charged it off, the debt buyer that purchased the portfolio, and the servicing agency that actually places calls and furnishes data. They are not interchangeable defendants. The buyer usually owns the account and is the entity reporting it; the servicer is often the one whose conduct on the phone gives rise to a claim. Naming the wrong company wastes the filing and can cost time you do not have if a limitations period is running.
- LVNV Funding — a purchaser whose accounts are serviced under a different corporate name.
- Resurgent Capital Services — the servicer that manages accounts owned by affiliated buyers.
- Cavalry Portfolio Services — handles collection on debt held by a related acquisition entity.
- Jefferson Capital Systems — buys and collects consumer accounts under its own name.
- Credit Control — a contingency agency collecting on behalf of other owners.
- Penn Credit — an agency working accounts placed by creditors and public entities.
Pull the credit report entry and the collection letter side by side, because the tradeline names the furnisher while the letter usually names both the current owner and the agency contacting you. Request validation in writing early, since the response has to identify the creditor and gives you a documented record of what the company claims. With the corporate structure established, a claim can be brought against each company for its own conduct rather than against a name that turns out to be a brand rather than a legal entity.
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