The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers from credit reporting errors. If you suffered financial damages as a consequence of a mistake on your credit report, you have the right to seek compensation. Recently, a federal court decision out of Idaho showed the strong importance of proving damages as part of an FCRA claim. In the case of Rita v. GreenSky Management, the court dismissed a consumer’s FCRA claim solely due to lack of damages. At The Kim Law Firm, LLC, we have deep experience with Fair Credit Reporting Act cases. Our credit report error lawyer provides a more comprehensive overview of this recent case and highlights the key things to know about proving damages in an FCRA claim.
Case Review: Rita v. GreenSky Management
On December 22, 2025, the United States District Court for the District of Idaho issued an instructive decision in the case of Rita v. GreenSky Management. The core legal conflict in the case arose after a home renovation project that went awry. A Boise-based couple named Jill Rita and Adrian Rita hired a local contractor to work on the renovation of their kitchen. They entered a loan agreement with a company called GreenSky Management Company, LLC, to fund the project. However, the couple was not satisfied with the work of the contractor. They disputed the bills. For its part, GreenSky Management attempted to collect on the alleged debt. It was eventually discharged as delinquent. The Ritas responded by filing a lawsuit under the FCRA and the FDCPA. Here is an overview of the specific allegation they raised:
- Alleged Inaccurate Reporting: The Ritas argued that GreenSky Management maintained and transmitted derogatory credit reporting information to a consumer reporting agency (TransUnion) and failed to conduct a reasonable investigation after it was disputed.
Notably, under the FCRA (Section 1681s-2(b)), once a furnisher of information receives notice of a dispute from a consumer reporting agency, it must conduct a reasonable reinvestigation and correct or delete any inaccurate information it furnished. The core factual allegations included GreenSky’s Management placement of a charge-off status on the Ritas’ credit file and its subsequent response to TransUnion following a formal dispute. The plaintiffs claimed that GreenSky Management, despite being notified of the dispute, failed to substantively investigate or adjust the credit entry. GreenSky Management removed the case from state court to federal district court. Over time, the pleadings evolved, with the Ritas amending their complaint and the court granting partial motions to dismiss.
Note: A big factor in the dismissal was the lack of substantiated damages. On the FCRA § 1681s-2(b) claim, the court emphasized that actual damages are an element of a private furnisher claim unless the plaintiff proceeds under a willfulness theory with statutory damages. The plaintiffs did not develop a viable willfulness case. For that reason, the court determined that the claim had to be dismissed at the summary judgment stage.
The Big Lesson: You Must Prove Damages in an FCRA Claim (Unless it is a Wilful Violation)
The Fair Credit Reporting Act gives consumers a powerful tool to challenge inaccurate credit reporting. But the statute does not excuse a plaintiff from the basic demands of civil litigation. An FCRA claim does not survive on allegations alone. At summary judgment, the court will ask a simple question: what harm did the violation actually cause? The statute draws a sharp line between negligent violations and willful ones. It is that line that controls what a plaintiff must prove to recover. Here is an overview of the key things to know about the damages element of an FCRA claim:
- Non-Wilful Violation: Most FCRA cases proceed under a negligence theory. In a non-willful violation case, damages are not an optional element. The plaintiff must prove actual harm caused by the statutory failure. That harm must be concrete, supported by evidence, and causally connected to the post-dispute conduct at issue. General testimony about stress, frustration, or worry often falls short without corroboration. Economic harm requires more than speculation. Plaintiffs must connect lost credit opportunities, higher interest rates, or business consequences to the specific reporting conduct that allegedly violated the statute. Evidence matters. If the record does not show a measurable injury tied to the furnisher’s failure to reasonably investigate or correct inaccurate information, the court can end the case even if the dispute process looked flawed. If you have any questions about non-wilful violations, an experienced credit report error attorney can help.
- Wilful Violation: A willful violation changes the calculus. Under the FCRA, a plaintiff who proves willfulness may recover statutory damages even without proof of actual harm. That makes willfulness an attractive theory, but it is also a demanding one. Willfulness requires more than carelessness or a bad outcome. The plaintiff must show that the defendant knowingly violated the statute or acted in reckless disregard of its obligations. Courts look for evidence of systemic disregard, clear statutory warnings ignored, or policies that make compliance unlikely. A reasonable but mistaken interpretation of the statute usually defeats willfulness. Because of the standard, willfulness claims are focused on internal practices, training materials, dispute-handling protocols, and many other case-specific factors. If you have any questions about wilful violations, an experienced credit report error attorney can help.
The takeaway is straightforward. An FCRA claim is not self-executing. In a negligence case, damages must be proven with evidence, not assumed. In a willfulness case, the bar shifts from proof of harm to proof of reckless or knowing misconduct. Your litigation strategy matters. A top-rated FCRA lawyer can help you determine the best path forward in your case.
An Overview of Actual Damages a Consumer May Have Suffered Due to an FCRA Violation
In a non-willful Fair Credit Reporting Act claim, actual damages are not assumed. A consumer must prove that a reporting or reinvestigation failure caused real, identifiable harm. Courts require evidence. Vague testimony or generalized frustration does not suffice. In other words, comprehensive and compelling evidence is a must to bring a successful FCRA claim. The following categories reflect the types of actual damages in credit report error cases:
- Denial of Credit and/or Less Favorable Credit Terms: A consumer may suffer actual damages if inaccurate reporting leads to a credit denial or worse borrowing terms. This includes higher interest rates, reduced credit limits, or unfavorable loan conditions.
- Increased Cost of Borrowing: Even when credit is approved, inaccurate information can raise the cost of credit. A higher APR, additional fees, or loss of promotional financing may qualify as damages. To bring a successful non-wilful FCRA claim, a plaintiff needs documentation linking the cost increase to the reporting error
- Loss of Business and/or Employment Opportunities: Some consumers rely on credit for business operations or employment screening. Actual damages may exist where inaccurate reporting causes lost contracts, financing denials, or the denial of a job.
- Any Out-of-Pocket Costs: Expenses incurred to address the reporting error can qualify as actual damages. Among other things, this may include postage, copying costs, credit monitoring fees, or travel expenses related to resolving the dispute.
- Emotional Distress: Emotional distress can support actual damages, but courts scrutinize these claims carefully. Credible testimony may suffice, but corroboration strengthens the case. Medical records, therapy notes, or testimony from family members often help establish severity and causation. Damages for emotional distress can be challenging to recover, but it is possible when compelling evidence is available.
- Time/Productivity Loss: Time spent addressing inaccurate credit reporting may qualify when it is substantial and documented. Plaintiffs should show how the time loss affected work, business operations, or income. It could be recoverable as an FCRA damage.
- Harm to Financial Reputation: Finally, consumers also have the right to seek compensation for harm to their financial reputation as long as they can prove that the reputation was tangible and that it was related to an FCRA violation.
What to Know About Statutory Damages: Wilful Violations
Statutory damages under the Fair Credit Reporting Act exist for a narrow reason. Congress recognized that some violations undermine consumer protections even when concrete harm is difficult to quantify. For that reason, the FCRA permits recovery of statutory damages for willful violations. In other words, financial compensation can be sought by a consumer even without proof of actual damages. To be clear, that is a powerful remedy. Still, it is by no means automatic.
A willful violation requires proof that the defendant knowingly violated the statute or acted in reckless disregard of its requirements. Negligence is not enough. A mistake, even a serious one, does not establish willfulness if the defendant adopted a reasonable interpretation of the statute. Courts ask whether the conduct ran an unjustifiably high risk of violating the law and whether that risk was known or obvious.
Note: Statutory damages range from $100 to $1,000 per violation. The amount within that range is not fixed. In FCRA cases, judges and juries consider the nature of the violation, its frequency, and whether the conduct reflects a systemic compliance failure. In some cases, there may be several different overlapping violations. Significant statutory damages may be recoverable through a wilful damages FCRA claim.
Know the Elements of an FCRA Claim: The Importance of Causation
Proving damages is not enough by itself. A consumer must also prove causation. Courts require evidence that the harm flowed from the specific FCRA violation, not from unrelated credit issues or broader financial problems. Causation is absolutely essential in these cases. If a consumer had preexisting delinquencies, charge-offs, or poor credit history, the defendant will argue that those factors caused the injury. Plaintiffs must isolate the disputed tradeline and show that it made a real difference. Without a clear causal link, even legitimate harm may not be recoverable.
Timing is a Big Deal: The Difference Between Pre-Dispute/Post-Dispute Harm
FCRA liability for furnishers generally arises after a consumer reporting agency provides notice of a dispute. Damages must align with that timeline. Harm that occurred before the furnisher’s statutory duties were triggered may not support recovery. Should there be litigation in an FCRA case, courts often examine when the negative event occurred, when the dispute was submitted, and when the reporting allegedly failed to change. A top-rated credit report error lawyer can help you document your damages, establish the timing, and use that evidence to prove causation.
Why Trust Credit Report Error Attorney Richard H. Kim for a Credit Report Error Claim
Richard H. Kim is a consumer protection lawyer with extensive experience providing solutions-focused guidance and support in credit report error cases. Well-versed in the Fair Credit Reporting Act, Attorney Kim works to help people get errors on their credit reports fixed and to seek financial compensation for their losses. If you have any questions or concerns about gathering the evidence that you need to bring a strong FCRA claim, please do not hesitate to contact our law office today to set up a completely private, no-commitment initial case review.
FCRA claims are complicated. Early strategic decisions shape the outcome of an FCRA case. Plaintiffs must decide whether to pursue actual damages, willfulness, and statutory damages, or both. Each path requires different evidence. Actual damages demand proof of harm and causation. Willfulness demands proof of reckless or knowing misconduct. Attorney Kim has the knowledge, skills, and experience that consumers can rely on in both negligenceand FCRA violation claims and wilful violation FCRA claims.
Contact Our FCRA Lawyer for a Completely Confidential Consultation
At The Kim Law Firm, LLC, our FCRA attorney has the knowledge and experience that you can rely on. If you have any questions about proving damages in an FCRA claim, we are here to help. Our firm fights for consumer rights. It is our mission to hold creditors, debt collectors, and credit reporting agencies accountable. Call us today or contact us online to set up a fully confidential, no obligation initial consultation. We provide nationwide representation in FCRA claims.
