Recently, federal regulators obtained an emergency injunction to stop a so-called “accelerated debt” company from taking advantage of consumers. On July 17, 2025, the Federal Trade Commission (FTC) filed a complaint against several companies in the United States District Court for the District of Arizona (Federal Trade Commission V. Accelerated Debt Settlement Inc.). The federal consumer protection agency alleges that seven companies and three individuals carried out debt relief scams targeted at senior citizens and other vulnerable people. The companies are accused of violating the Fair Credit Reporting Act (FCRA) and other federal consumer protection laws. Our credit report error lawyer provides a comprehensive overview of the case and the key things that consumers should know about the law. 

Case Review: Federal Trade Commission V. Accelerated Debt Settlement Inc.

Background and Facts

In July of 2025, the FTC filed suit in the United States District Court for the District of Arizona against Accelerated Debt Settlement Inc. and six related corporate entities, along with three individuals: Jeffrey A. Lakes, Robert L. Knechtel, and Elizabeth A. Reaney. Notably, the legal complaint followed an ex parte request by the FTC, which led the court to issue a temporary restraining order (TRO), asset freeze, appointment of a receiver, and expedited discovery to stop the defendants from dissipating assets and continuing the alleged scheme. The firms—which reportedly did collective business as “Accelerated Debt”— marketed debt relief services nationwide. Notably, they focused their “services” on vulnerable populations, including senior citizens. Unfortunately, they left many already financially distressed consumers with even more debt. 

The Allegations 

According to the complaint filed by the plaintiff, the defendants (Accelerated Debt Settlement Inc. and the related entities) engaged in an extensive debt relief scam. They operate as a common enterprise across multiple shell companies with shared ownership, coordination, and overlapping commercial operations. Notably, they marketed services via telemarketing, direct mail, and online ads. In doing so, they falsely claimed they could reduce unsecured debts by up to 75% or even 85%. Unfortunately, financially distressed consumers were misled into believing the callers were their own banks, credit card companies, government agencies, or consumer reporting agencies. They were even sometimes speaking to people from these companies who presented themselves as being associated with Experian or the Social Security Administration (SSA).  

After supposedly enrolling, many victims paid illegal advance fees (often thousands of dollars, sometimes even more than $10,000), yet received little or no debt-relief work. In fact, some consumers wound up more deeply in debt. Several of them saw their credit scores collapse by 100 or even 200 points. Beyond that,  the defendants routinely contacted consumers listed on the National Do Not Call Registry, did not transmit caller ID information, and issued remotely created checks in violation of the Telemarketing Sales Rule (TSR). These are all serious violations. Beyond that, the complaint further alleges violations of the Gramm‑Leach‑Bliley Act (GLBA), the Fair Credit Reporting Act (FCRA), and other federal consumer protection regulations. 

FCRA Issues

There are FCRA issues at stake in this case. Indeed, the FTC’s complaint specifically includes a count under Section 604(f‑1)(1) of the FCRA. That regulation governs the permissible purposes for accessing consumer reports. The federal agency argues that the defendants unlawfully obtained and used consumer credit reports without any permissible purpose. Indeed, they tried to get these reports for an illegitimate purpose: to impersonate legitimate entities to coax victims into paying fees. The misuse of credit report data formed part of a broader deceptive strategy and violated both the FCRA and the FTC Act’s prohibition on unfair and deceptive practices. 

Consumers were typically deceived by inaccurate or contrived representations drawn from their credit data, including claims that their credit card accounts had been compromised and needed immediate closure. By misrepresenting their identity and using credit report information for illicit intent, the defendants breached FCRA’s strict limits on access and use of consumer credit reports. While the case is still pending, the court found that the FTC is more likely than not to succeed on the merits. As such, a temporary injunction was put in place. 

The FCRA Restricts the Access and Use of Consumer Credit Reports

The information on your credit report is sensitive. The FCRA strictly limits who can access a consumer’s credit report and how they can use that information. Only entities with a “permissible purpose” may legally obtain a consumer report. Indeed, the law prohibits companies from pulling credit reports for marketing, curiosity, or any reason unrelated to a legitimate transaction. All commercial entities that access credit reports must also ensure they use the information accurately and fairly. Unauthorized access, misuse, or deceptive acquisition of credit data violates the FCRA and can trigger significant civil liability and enforcement action. 

The Bottom Line: Consumers have the right to know who accessed their credit report. You should not be subject to having parties review your credit file without a legitimate purpose. 

Other Key Rights You Have Under the Fair Credit Reporting Act

The FCRA is a comprehensive law. It is one of the most important federal statutes that protects consumers. Your credit report matters. It can have a huge impact on your finances, including how much interest you pay, your ability to get a loan, and even your ability to land a job or qualify for an apartment. Here are some of the most notable other rights that you have under the FCRA: 

• The Right to Access Your Own Credit Report: You have the right to request and review your credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) once every 12 months for free at AnnualCreditReport.com. The right allows you to monitor your credit history, catch potential fraud, and check for errors. You should be sure to use AnnualCreditReport.com to obtain a copy of your report. Other credit report services generally do not truly offer “free” credit reports. 
• The Right to Dispute Inaccurate Information: If you find incorrect or outdated information in your credit report, you have the right to file a dispute with the credit bureau. The bureau must investigate your dispute. That investigation should typically happen within 30 days after a consumer has flagged the issue. The credit reporting agency should correct and/or remove any inaccurate or unverifiable information. If you have any questions about the process for disputing inaccurate information on a credit report, an experienced FCRA lawyer can help. 
• The Right to Be Notified of Adverse Action Based on a Credit Report: If a lender, employer, landlord, or other entity takes adverse action against you (denial of a loan, denial of a job, etc) based on information in your credit report, they must notify you. The notice must include the name of the credit bureau that supplied the report and explain your right to obtain a free copy and dispute any inaccuracies. 
• The Right to Seek Damages for Violations: If a company, organization, or individual willfully or negligently violates your FCRA rights, you have the right to seek compensation. You may be entitled to actual damages, statutory damages, punitive damages, and attorney’s fees. Our credit report error lawyer can help you take action to get compensation for damages related to an FCRA violation. 

How a FCRA Lawyer Can Help You Navigate a Claim

The FCRA is an important consumer protection law. It is also a complex statute. As a consumer, you may have a lot of questions about your rights and your options under the Fair Credit Reporting Act. You do not have to navigate the claims process alone. Professional legal guidance and support is available. Here are four key ways that an FCRA attorney can help: 

• Investigate Unauthorized Access to Your Credit Report: If someone pulled your credit report without a permissible purpose, a FCRA lawyer can investigate who accessed it and why. Your attorney can request documentation, review access logs, and identify whether the inquiry violated the law. Unauthorized access can happen when a company uses deceptive tactics or when a person accesses your report out of curiosity or personal motives. 
• Challenge Inaccurate or Misleading Information: Errors on your credit report can cause serious damage to your finances. A FCRA lawyer can help you submit detailed disputes to the credit bureaus and the furnishers of the data. If those parties fail to correct the errors after receiving proper notice, your lawyer can file a lawsuit to seek financial damages for the harm caused to your credit and financial reputation.
• Represent You in a FCRA Lawsuit: When your rights under the FCRA are violated, a lawyer can guide you through the legal process and file a civil claim on your behalf. Your attorney can handle everything from drafting the complaint to negotiating with the defendant or representing you in court. FCRA violations can result in compensation for actual damages, statutory damages, and, in cases that involve wilful misconduct, even punitive damages. 
• Protect You From Retaliation or Ongoing Harm: Unfortunately, in some cases,  consumers face retaliation after asserting their FCRA rights. It is illegal. A consumer protection lawyer can help stop continued harm by seeking injunctive relief, notifying regulators, and documenting ongoing misconduct. They may also assist in coordinating related legal issues, such as identity theft or fraud. We are proactive, and we are protected to protect you. 

How Much Compensation Can I Reasonably Expect to Recover for an FCRA Violation?

It depends. The amount of compensation you can recover for a FCRA violation varies based on the type of violation and whether it was willful or negligent. If the violation was negligent (the company failed to take reasonable care,) you may be entitled to actual damages. Among other things, this includes your actual financial losses, emotional distress, and harm to your credit reputation. To be clear, there is no fixed cap on actual damages, but you must prove them with strong supporting evidence. Losses in an FCRA claim should be well-documented. 

Notably, if the violation was willful (done knowingly or recklessly by the defendant), you can still recover for the full extent of your actual damages. Beyond that, you may also be able to recover for statutory damages between $100 and $1,000 per violation. That is true even if you cannot prove specific financial harm. In some cases, courts may also award punitive damages to punish egregious misconduct. 

Key Point: You should not be stuck responsible for costs because your rights were violated. The FCRA allows you to recover attorney’s fees and other legal costs as part of your claim. 

Richard H. Kim is a Top-Tier Consumer Protection Lawyer 

If your rights were violated, you need to be prepared to take action. With a strong foundation in handling violations under the Fair Credit Reporting Act (FCRA), Richard H. Kim is widely recognized as a top‑tier consumer advocate. Based in Philadelphia and admitted to practice in both Pennsylvania and New Jersey, he handles federal FCRA cases nationwide. Attorney Kim fights aggressively to enforce and protect consumer rights in cases that involve false credit reporting and misconduct by information furnishers. With extensive litigation experience in FCRA matters, we know how to deliver results. Our detail-focused legal team will investigate your FCRA case, gather and prepare all supporting documentation, demand timely correction of errors, and take action to help you secure the maximum financial compensation. Our firm also handles other matters, including FDCPA cases. Victims of credit report errors often have other claims as well, including for something like debt collector harassment. 

Contact Our Credit Report Error Attorney Today

At The Kim Law Firm, LLC, our FCRA lawyer is a skilled, knowledgeable advocate for consumers. If your rights were violated under the FCRA, the FDCPA, or a related law, we are here to help. Our firm puts a strong emphasis on doing right by clients. Call us today or contact us online for a completely confidential, no obligation initial consultation. We handle FCRA cases nationwide. 

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If a company willfully violates the FCRA, the affected consumer has the right to seek additional remedies. Compensation may be sought for actual damages, in the form of statutory penalties, and punitive damages. Our credit report error attorney provides a comprehensive guide to willful violations of the FCRA. 

The Fair Credit Reporting Act Protects Consumer from Errors on their Credit Report

The FCRA is one of the most important federal consumer protection laws. The law was enacted by Congress in order to give consumers a tool to challenge inaccurate information on their credit reports. Under the FCRA, the three nationwide credit reporting agencies (Equifax, Experian, and TransUnion) and every company that supplies them with data—referred to as “furnishers”—must follow strict accuracy and verification rules. If a creditor reports that you missed a payment, it must have solid evidence to back that up. Along the same lines, if a debt collection agency says you owe a balance, it must be able to document the debt.

You Can Take Action to Get Inaccurate Information on a Credit Report Corrected

Consumers should regularly review their credit report. You have the right to get a free copy of your credit report once per year. The official website to get a copy of your credit report is: www.annualcreditreport.com. What happens if you discover that there is something inaccurate in your report? The short answer is that you can and should take immediate action to get your report corrected. It is your right to do so. Here are the steps to take under the FCRA when you see an error: 

1. Pull All Three Reports: An error on one report may not appear on the others. Alternatively, it could be on every single report. With that in mind, you should review Equifax, Experian, and TransUnion side by side.
2. Gather Proof that there is an Error: The more documentation you have, the better. You should collect statements, canceled checks, police reports (for identity theft), or correspondence that shows why the item is wrong.
3. File a Written Dispute—Online or by Certified Mail: The FCRA requires consumers to file a dispute in writing to be protected. In doing so, you should clearly identify the error, attach your evidence, and keep a copy of everything you send. Certified mail is often the best approach. It gives you a paper trail. It also starts the 30-day clock for investigation. 
4. Notify the Furnisher of the Inaccurate Information: You should notify the credit reporting agencies where the error appears. Beyond that, you should also send the same dispute packet to the creditor, debt collector, or other furnisher that caused the mistake. 
5. Track the Investigation and Review the Outcome: Under the FCRA, credit bureaus must complete their investigation (or delete the item) within 30 days. However, that deadline extends 45 days if you add new documentation after the initial dispute. By law, the agency must mail or email you a written outcome of their investigation. 
6. Escalate Your Complaint (if Necessary): The ideal outcome is that the inaccurate information on your credit report will be removed. Unfortunately, that does not always happen. If the item remains or reappears, you have the right to escalate the matter. A credit report error lawyer with experience handling FCRA cases can help. 

Credit Reporting Agencies and Furnishers May Be Liable for an FCRA Violation

Through an FCRA claim, a consumer may be able to hold a credit reporting agency and/or a furnisher (creditor or debt collector) legally liable for an error. To be clear, a credit bureau is not automatically liable if an error shows up on your credit report. However, they can be held liable if they fail to correct that mistake in a timely manner after you have provided proper notice. Some common examples of credit report errors include: 

• Incorrect Payment Status: Payment status is one of the primary factors in determining your credit rating. Unfortunately, mistakes can happen. An account that is current could be marked as “past due” by nothing more than a simple error.  
• Mixed File Error: Mixed file mistakes are one of the most common credit report issues. They happen when the information belonging to someone with a similar name—or Social Security number—is merged into your file due to an error. 
• Identity Theft: Unfortunately, identity theft is a serious problem. You should not be held responsible for theft. You are the victim. If a fraudulent credit card opened in your name remains on your report even after you submit an identity theft affidavit, that is a problem. 
• Deleted Data Coming Back Without Just Cause: In some cases, consumers deal with an issue where a debt that was removed after a successful dispute reappears because the furnisher resubmitted it without the legally required “certification of accuracy.”
• Outdated Negative Information: Nothing remains on a credit report forever, even a personal bankruptcy. A paid tax lien, collection account, or civil judgment staying on the report beyond the reporting window is an error. 
• Duplicate Collections: When debts go into collections, they can get sold off to third parties—often several times. An error can occur when this happens where the same debt will be listed more than once on a consumer’s credit report. 

What to Know About Willful Violations of the FCRA 

Credit bureaus, agencies, and information furnishers can be held liable for violating the Fair Credit Reporting Act. Notably, the law distinguishes between violations and willful violations. Under federal law (15 U.S.C. § 1681o), a consumer can seek FCRA damages from a party for a negligent violation. That is defined as a violation caused by the defendant’s failure to use reasonable care. Federal law (15 U.S.C. § 1681n) allows for the recovery of additional damages if the FCRA violation was “willful”—which occurs when the defendant either knowingly and intentionally violated the FCRA or acting with reckless disregard for the law. Here is an overview of damages: 

• Negligent FCRA Violation: With a negligent FCRA violation, an affected consumer can seek compensation for the full extent of their actual damages and for attorneys’ fees/legal costs.  
• Willful FCRA Violation: With a willful FCRA violation, a consumer can seek all aforementioned damages (actual losses and attorneys’ fee) and additional compensation in the form of statutory damages and, potentially, punitive damages. 

What Makes an FCRA Violation “Willful”?

In the 2007 case of Safeco Ins. Co. of America v. Burr, 551, the Supreme Court of the United States set the standard for what constitutes a willful violation in an FCRA case. The litigation at issue started out as a separate class action lawsuit against GEICO General Insurance Company and Safeco Insurance Company of America. Notably, both insurance companies used credit‑based insurance scores in order to price auto liability policies. That is a practice that is permitted under federal law only if the insurer sends a written adverse‑action notice if a consumer’s credit report has caused them to receive a less favorable policy rate. Here are the two big issues: 

1. GEICO Case: GEICO gave applicant Sergio Edo its second‑best rate tier. Because the company alleges that Mr. Edo would have received exactly the same price if his credit data had been “neutral” instead of “adverse,” GEICO decided no written notice was required.
2. Safeco Case: Safeco automatically assigned its initial applicants a mid‑level tier unless they had an exceptionally high credit score. Two applicants (Mr. Burr) and (Mr. Massey) alleged that they were silently placed in a pricier tier because of their credit and never notified.

In other words, both the GEICO class action case and the Safeco class action case had a similar underlying legal issue. Applicants were given a less favorable policy rate because of information on their credit report, but were never provided with any written notice to that effect. The district courts sided with the insurers. However, the Ninth Circuit reversed. 

The cases eventually merged and made their way to the Supreme Court. One of the key issues before the nation’s highest court was what constitutes a “willful” violation of the FCRA. The Supreme Court held that a “willful” violation of conduct that is either 

1. Intentional in violation of the FCRA’s requirements; or 
2. In reckless disregard of the FCRA’s requirements.

These are highly fact-specific cases. As a consumer who is preparing to take legal action against a credit agency, a creditor, a debt collector, or any other party for a willful FCRA violation, it is imperative that you have strong evidence to prove they intentionally or recklessly breached the law. 

A Willful FCRA Violation Can Lead to More Serious Penalties

Were you the victim of an error on your credit report? You have the right to seek compensation for your damages. It is important to remember that additional damages can be sought if you can prove that the FCRA violation was “willful” in nature, either due to being intentional or with reckless disregard. Through a willful FCRA violation case, you may be able to recover compensation for: 

• Actual Damages (No Limit): Actual damages are the basis of any FCRA claim, including for a willful violation case. When a consumer proves a willful violation of the FCRA, they may recover uncapped “actual damages.” The core purpose of actual damages for the victim is to reimburse every reasonably foreseeable loss tied to the erroneous credit reporting. Along with other losses, you may be entitled to recover actual damages for any out‑of‑pocket costs paid to dispute the error, lost wages from a rescinded job offer, higher interest rates, higher insurance premiums, the denial of housing, and emotional distress proven with supporting evidence.
• Statutory Damages ($100 to $1,000 Per Violation): If you can prove a willful FCRA violation, you also have the right to seek compensation for statutory damages. Indeed, federal law has a built‑in damage range to eliminate the need for consumers to quantify every dollar of loss. If a violation is willful, a plaintiff may elect statutory damages between $100 and $1,000 for each violation.  Courts have interpreted “per violation” broadly, sometimes counting each inaccurate item or each unlawful disclosure separately. 
• Punitive Damages (Egregious Conduct): Although a limited remedy that is not available in every case, courts can also award punitive damages for a willful FCRA violation. Punitive damages are discretionary: Judges/juries award them only when evidence demonstrates that the defendant’s practices were so egregious that mere compensation would be insufficient deterrence. The amount of punitive damages, if any, awarded will depend on the egregiousness of the defendant’s violation of the FCRA. An FCRA lawyer can help you seek the maximum punitive damages if they are available as a remedy in your case. 

The Bottom Line: An FCRA violation is a serious matter, especially so if you were subject to a willful violation. It can cause serious financial harm. You have the right to hold the responsible party legally liable for the full extent of your actual damages. Further, if you can prove you were the victim of a willful violation, you may also be able to recover for statutory damages and even punitive damages. An experienced credit report error lawyer can help you seek justice. 

Contact Our Credit Report Error Attorney for a Confidential Case Review

At The Kim Law Firm, LLC, our credit report error attorney is standing by, ready to protect your rights and interests. If you were the victim of a willful violation of the FCRA, we are here as a legal resource. Contact us today for a fully private, no-obligation initial consultation. We are committed to fighting for justice for consumers who have had their rights violated under the FCRA. 

The post Willful Violation of the FCRA: What it is, Why it Matters, and What Damages are Available appeared first on The Kim Law Firm, LLC.

The Fair Credit Reporting Act (FCRA) is one of the most powerful, effective tools that you have to protect your financial interests and clear your good name. Here, our identity theft attorney explains the key things to know about your rights and options under the FCRA. 

Identity Theft Can Cause Very Serious Damage to Your Credit

Identity theft is far more than a mere inconvenience—it can wreak havoc on your credit. Fraudulent accounts, missed payments for debts you never took out, and maxed-out credit lines can tank your credit score. It can make it harder for you to get loans, subject you to higher interest rates, make it more difficult to rent an apartment, and could even lead to a denial of employment. The frustration of dealing with creditors and credit bureaus can feel downright overwhelming. You do not have to face it alone: Legal options are available. The FCRA is a powerful tool for consumers. Identity theft on a credit report can and should be fixed. 

How the FCRA Protects Victims of Identity Theft

The FCRA is a federal law that protects consumers, including the victims of identity theft. Indeed, the law gives people powerful rights to correct fraudulent and inaccurate information on their credit reports. Under the FCRA, you have the following rights: 

• You can request a free copy of your credit report to identify unauthorized accounts and/or unauthorized transactions.
• You can dispute inaccurate information—challenging any effects of identity theft. 
• You can place a fraud alert or credit freeze to prevent further damage. 

Note: If credit bureaus or creditors fail to follow the law—meaning they fail to fix errors/fraud—you may be able to take legal action under the FCRA to recover compensation. 

Know the Steps to Take Under the FCRA to Correct Identity Theft 

Were you harmed by identity theft? You need to fix your credit report. Here are four steps to take under the FCRA to exercise your rights to correct the harm caused by identity theft: 

1. Get a copy of your credit report from each of the three major credit reporting agencies; 
2. Gather and organize all relevant documents and financial records; 
3. Proactively dispute any inaccurate or fraudulent information; and
4. Consult with an experienced FCRA attorney as soon as possible. 

Contact Our FCRA Lawyer for a Confidential Consultation

At The Kim Law Firm, LLC, we help victims of identity theft get justice, compensation, and fix their credit report. If you or your loved one was the victim of identity theft, our attorney is here to help you navigate FCRA issues. Call us now or contact us online today for a free, no obligation case review. We provide nationwide representation in FCRA cases.

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The Fair Credit Reporting Act (FCRA) is a federal law that provides some key protections against unfair employer background checks. Here, our employer background check violation attorney offers a comprehensive overview of key things to know about your rights under the FCRA. 

You Have the Right to Provide Written Consent Before a Background Check is Conducted

An employer cannot conduct a comprehensive background check—that being one that relies on consumer-based credit reports—without getting your authorization. Indeed, the FCRA requires businesses and organizations to obtain your written consent before conducting a background check. It is a legal requirement that helps to make sure that job applicants and employees are both aware of and agree to the screening process before it happens. Employers must provide a clear and conspicuous disclosure, separate from other employment documents. 

Note: You can deny your consent for a background check. Though, if you do so, an employer could decline to offer you a position based on that fact. 

You Have the Right to an Adverse Action Notice if the Employer makes an Unfavorable Decision 

What happens if an employer decides that they do not want to offer a job applicant employment because of adverse information in their credit report? The answer is that the FCRA requires employers to notify the applicant of that fact—either in writing or orally. Most often, the notice will come in writing. The purpose of this requirement is to give you an opportunity to review the report and dispute any inaccuracies. As a best practice, employers should generally give an applicant a pre-adverse action notice to allow them to clarify issues and/or address inaccuracies. However, that is not required as a matter of law in all states. 

You Have the Right to Credit Reporting Agencies and Third Parties Liable for Inaccuracies 

If your background check contains errors, the FCRA grants you the right to dispute those issues and hold credit reporting agencies, third party furnishers (debt collectors), and third party screeners (background check companies) accountable. Indeed, through an FCRA claim, consumers have the right to hold the at-fault party legally responsible for the full extent of the damages that they suffered because of inaccurate information. Being passed over for a job based on a credit report error is legally actionable under the FCRA. While the employer may not be responsible, a credit reporting agency, creditor, debt collector, or background check company may bear fault. 

Contact Our Employer Background Check Violation Attorney Today

At The Kim Law Firm, LLC, we help protect the rights of job applicants and employees who have had their rights violated in relation to an employment background check. If you have any questions about your options, please do not hesitate to contact us for a confidential consultation. 

The post The FCRA and Employer Background Checks: Know Your Rights appeared first on The Kim Law Firm, LLC.

1. Someone Else’s Account (Identity Theft or Mixed File)

Your credit report may show accounts that belong to someone else. It could be due to identity theft or a mixed file, such as a credit report from someone with a similar name. These errors can damage your credit score and, in some cases, make you responsible for debts that are not yours. You should absolutely dispute your credit report if someone else’s account ends up in your file. 

2. Inaccurate Late/Missed Payment

A credit report may wrongly show a late or missed payment on an account you paid on time. These errors can dramatically lower your credit score. It could even adversely affect your ability to get approved for credit. Here is a key point to know: Lenders rely heavily on payment history—and that means that even one false late payment can be costly.

3. Incorrect Balance Information

Your credit report might list the wrong balance on one or more of your accounts. It could make it seem like you owe more than you actually do. That would harm your credit utilization ratio, which plays a big role in your credit score. A higher reported balance may make lenders see you as a higher risk.

4. Account Status Wrong

A credit account may be incorrectly marked as open when it was closed, or vice versa. Other status errors include showing an account as delinquent, charged off, or in collections when it is actually in good standing. You should make sure that the status of all of the accounts that are listed on your credit report is accurate. 

5. Errors Related to Public Records

Public records matter. You should make sure that you take a look at all the records listed on your report for accuracy. Public records like bankruptcies, liens, or judgments may be reported incorrectly on your credit file. In some cases, they may belong to someone else or may have been dismissed but still appear as active.

6. Outdated Adverse Information (Should Already Be Removed)

Negative information—such as late payments or outstanding debt collections—should automatically be removed after a certain number of years. If outdated data remains on your credit report, it can unfairly lower your credit score. Credit reporting agencies have a responsibility to make sure that information is removed when it should be. 

Contact Our Credit Reporting Error Lawyer Today

At The Kim Law Firm, LLC, we are committed to protecting the rights and interests of consumers. Credit reporting agencies can cause you significant financial harm—they should be corrected. If you have any questions about your options for fixing a credit report error, please do not hesitate to contact us today. Our firm holds creditor reporting agencies and debt collectors accountable. 

The post Is Your Credit Report Accurate? Look for These Six Common Types of Errors appeared first on The Kim Law Firm, LLC.

Your credit report matters. It can affect your ability to secure loans, obtain favorable interest rates, and sometimes even impact your job prospects. Beyond that, landlords and utility companies may check your credit report when deciding on the terms of a lease or whether to require a deposit.  You should not be held responsible for an error on a credit report. At The Kim Law Firm, LLC, we protect consumers. In this article, our credit reporting errors attorney highlights four steps to take to fix the problem and to get justice. 

Step #1: Obtain a Copy of Your Credit Reports

As a starting point, you need to know what exactly your credit report(s) say. You should request free copies of your credit reports from the three major credit reporting agencies. The agencies are: 

• Equifax; 
• Experian; and
• TransUnion. 

Every U.S. consumer is entitled to a free credit report from each agency once per year through the official website. AnnualCreditReport.com. You should review each report carefully for inaccuracies. 

Note: Other services promising free credit reports are not official. Use AnnualCreditReport.com. 

Step #2: Dispute Inaccurate Information With the Credit Reporting Agency

If you find any error on any specific credit report, you have the right to dispute it. You can dispute the error online or over the phone. It is important to dispute the error with each credit reporting agency that is reporting the inaccurate information separately. Each agency operates independently and does not always share dispute information with one another. 

Step #3: Gather and Submit Supporting Documentation

You should gather and prepare all documentation that you have that is related to the error(s). Some of the most common examples of relevant information. Include bank statements, letters, or emails verifying account status and other legal documents. You should send copies—not the originals—to each of the credit agencies. Further, you should generally send a detailed letter that includes your name, address, the items being disputed, and a request for correction. 

Step #4: Take Legal Action Against the Responsible Party

The Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer reporting agencies use your information. It ensures the accuracy, fairness, and privacy of the information in consumer reports. Beyond that, the FCRA provides remedies to consumers who have been harmed by an error on a credit report. You can seek financial compensation from the at-fault party if you sustained actual damages from the result of a credit report error. Some examples include: 

• Denial of credit; 
• A higher interest rate on a mortgage loan; 
• The loss of an employment opportunity; 
• Denial of an apartment; and
• Major emotional distress. 

We Help People Challenge Credit Reporting Errors

At The Kim Law Firm, LLC, our consumer protection attorney has the knowledge, skills, and experience you can rely on. If you have any questions or concerns about credit reporting errors, we are here to help. Contact us today for a free, fully confidential consultation. We are committed to fighting for justice for people and families. 

The post Four Steps to Take to Fix Errors on Your Credit Report appeared first on The Kim Law Firm, LLC.

Allegations Against Dish Network

In this class action lawsuit, Plaintiff alleged on behalf of the putative class that Dish Network violated the FCRA in the following ways:

• Reporting outdated consumer information that was more than seven years old;
• Obtaining consumer reports without the valid authorization of prospective and current employees;
• Failing to inform prospective employees how consumer reports would be obtained; and
• Using information obtained in consumer reports to make hiring decisions without providing applicants with a copy of the report and an opportunity to correct any inaccurate information contained in the report.

The background check system used by Dish Network rated prospective employees, and current employees considered for promotions as: “high risk,” “low risk,” or “review”.  However, these ratings were developed through acquiring background information from prospective and current employees without obtaining their consent, or providing appropriate notice, as required under the FCRA.  In other words, the rating system of Dish Network was a clear violation of the law.

Dish Network Settles Lawsuit

Dish Network settled all claims associated with this class action lawsuit for $1.75 million.  This settlement leaves the one class of plaintiffs (contractor technicians) with approximately $480 each, with another class of individuals receiving approximately $80 each for the Defendants FCRA violations. 

Contact a Consumer Protection Attorney Today

If a prospective or current employer has conducted a background check without your written consent, or failed to notify you of your rights following the background check, it is crucial to act quickly to determine if your rights have been violated under the FCRA.  To learn more about what options may be available to you, contact The Kim Law Firm, LLC by calling 855-996-6342 to schedule an initial consultation with one of our Consumer Protection and FCRA Attorneys.

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Deceptive Packaging

In this class action suit, the plaintiffs allege that Nuun tablets are sold in non-transparent containers covered with brightly colored wrapping, in an effort to make it impossible to see how many tablets are in each bottle. The complaint also points out that the lids of the tube-shaped containers are controlled by a spring mechanism, which prevents purchasers from shaking the product. According to the plaintiffs, Nuun containers only hold 10 tablets when there is actually room for at least 13 tablets, meaning that around 24 percent of the packages contain slack fill.

The Food, Drug, and Cosmetic Act (FDCA)

The plaintiffs base their complaint on the FDCA, which states that food is misbranded if its container is made or filled in a misleading manner. In support of its argument, the complainants also point to the Code of Federal Regulations (CFR), which contains rules promulgated in accordance with the FDCA. According to these rules, containers that do not allow consumers to fully view the contents are considered misleading if they contain any non-functional slack fill. Slack fill will only be considered functional if:

• It is required to protect the contents of the package;
• Its use is required by the machine used for enclosing the package’s contents;
• The slack fill was caused by unavoidable settling during shipping and handling;
• The package has a specific function that is inherent to the nature of the food and is clearly communicated to purchasers;
• The product consists of food packaged in a reusable container; or
• It is impossible to reduce the size of the package or increase the level of product due to labeling needs, to accommodate tampering-resistant devices, or to facilitate handling.

The complaint further alleges that none of these exceptions apply to the situation involving Nuun products, meaning that the company violated both federal and state consumer protection laws. The plaintiffs request restitution and an injunction that would require Nuun to repackage its products in accordance with FDCA standards. 

Contact a Consumer Protection Attorney Today

Inappropriately labeled, packaged, or advertised consumer products can have a significant impact on the lives of thousands. Fortunately, both federal and state law protect buyers from certain deceptive practices, so if you live in New Jersey or Pennsylvania and have concerns about a product you purchased, please contact The Kim Law Firm, LLC by calling 855-996-6342 and we will help you set-up a consultation with one of our dedicated attorneys.

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For example, Wells Fargo would apply payments that were not sufficient to cover all student loans that a borrower might have, by spreading a payment across all of the student’s loans with the Bank.  This practice would allow the bank to generate even more late fees for the borrower’s loans when it could have applied the amount to fully pay some of the loans for the period, thereby minimizing the number of late loan payments, and related fees that may accrue.  Also, Wells Fargo was charging illegal late fees to certain student even though timely payments were made.  Further, Wells Fargo was representing false payment due dates to borrowers who had multiple loans that were being serviced by the Bank.  Wells Fargo would create the appearance that there was a single due date for each of the loans – when in reality – there were different due dates for each of the loans.  Only a single due date was provided on the billing statements sent to consumers.  This created significant confusion on the part of the borrower, and resulted in improper late fees.

Making matters worse, Wells Fargo would use these illicit practices as a basis to report incorrect credit information.  Moreover, the Bank was also failing to update or rectify false credit information for student loan borrowers related to the student loans, all in violation of the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq.

The Consumer Financial Protection Bureau (CFPB) instituted an investigation into Wells Fargo’s practices, and on August 22, 2016, the Bank and CFPB entered into a Consent Order fining the Bank approximately $3.6 million in penalties.

If you have had confusing/deceptive fees assessed by a student loan servicer, or improper credit reporting by a student loan servicer, it is vital to obtain the advice of an experienced consumer/FCRA attorney who can help protect your rights.  Please contact The Kim Law Firm, LLC by calling 855-996-6342 and we will help set-up a consultation with one of our dedicated attorneys.

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The Complaint

According to the complaint, in 2015 the plaintiffs discovered that Wells Fargo had reported them late on their line of credit periodically between 2012 and 2015 as a result of a mixed file error. The plaintiffs claimed to have alerted the relevant Credit Reporting Agencies (CRAs) of the discrepancies, but that Wells Fargo failed to provide accurate records of payment allocation to the CRAs after the errors were discovered.

As a result of these failures, the plaintiffs filed a complaint against both Wells Fargo and the CRAs alleging that both entities had violated the FCRA by willfully and negligently failing to:

• Follow reasonable procedures designed to ensure that accurate information was included in their consumer report;
• Correct their error after receiving notice of the inaccurate reports;
• Correct or destroy the incomplete information in the plaintiffs’ file after the completion of the investigation;
• Conduct an adequate investigation into the plaintiffs’ complaints; and
• Implement corrective actions at the conclusion of the investigation.

The plaintiffs argued that as a result of Wells Fargo’s actions, they had suffered actual damage, pain and suffering, and punitive damages. In response, Wells Fargo submitted a motion to dismiss the charges and the request for damages.

The Court’s Opinion

In its opinion, the court reiterated that Congress enacted the FCRA to counteract inaccurate reporting practices. For this reason, as well as the fact that the plaintiffs provided sufficient facts to support a claim that they were entitled to relief, the judge stated that the plaintiffs’ claims were valid under both federal and California credit reporting laws.

However, the court also decided that the plaintiffs’ allegations of actual injury were too vague and needed to be supported by more specific claims, such as:

• A reduction in a line of credit;
• A lost job opportunity;
• Loss of wages;
• Damage to the plaintiffs’ credit reputation; and
• A higher interest rate on at least one credit card.

The judge also asked the plaintiffs to support their claim for pain and suffering with more specific evidence of genuine injury, such as physical injury or emotional distress, which in turn could be demonstrated by claims of:

• Sleep loss;
• Nervousness or anxiety;
• Frustration; and
• Mental anguish.

The judge also stated that, contrary to the arguments of Wells Fargo, the plaintiffs were eligible to receive punitive damages if evidence revealed a willful violation of the law. The court further   declared that the plaintiffs were not required to prove malice, fraud, or oppression on the company’s behalf in order to collect punitive damages. Instead, a jury would decide the issue of whether punitive damages were justified by evaluating whether the defendant acted recklessly.

How an FCRA Attorney Can Help

Filing a claim against a large company for violating the FCRA can be intimidating, so if you have evidence that your credit score was reported incorrectly, it is important to contact an experienced attorney who can help you plead the facts of your case adequately. If you live in New Jersey or Pennsylvania please contact The Kim Law Firm, LLC by calling 855-996-6342 and we will help you schedule an initial consultation with a dedicated member of our legal team.

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