Proving Damages in a Fair Credit Reporting Act (FCRA) Claim

By The Kim Law Firm, LLC

Showing that a credit report was wrong is the start of a Fair Credit Reporting Act claim, not the whole of it. A consumer who sues also has to show what the violation cost, or, for a willful violation, rely on the statutory damages the Act provides. This page explains the kinds of damages the FCRA allows and the evidence that supports each.

Actual damages for a negligent violation

When a credit bureau or furnisher negligently fails to comply with the Act, the consumer may recover actual damages, plus costs and a reasonable attorney’s fee (15 U.S.C. § 1681o). Actual damages are the losses the error caused, such as:

• credit denied, or approved only at a higher rate or with a co-signer;
• an apartment, job or insurance policy lost or offered on worse terms;
• out-of-pocket costs, such as fees, postage and time away from work;
• emotional distress and the time spent trying to fix the error.

Each needs proof. A denial letter, an adverse action notice, a rate quote, receipts and a dated log of what happened carry more weight than a description given later.

Statutory and punitive damages for a willful violation

When a violation is willful, the consumer may recover actual damages or statutory damages of $100 to $1,000, punitive damages as the court allows, and costs and attorney’s fees (15 U.S.C. § 1681n). Willfulness includes reckless disregard of the Act’s requirements, not only knowing misconduct. Evidence that the company was told about the error, with documents, and repeated it anyway is the kind of record that supports a willfulness claim. See willful violations of the FCRA.

Build the record as you go

• Pull your reports before you dispute, and again after the results come back.
• Dispute in writing with each bureau showing the error, and keep proof of mailing and the results (15 U.S.C. § 1681i). That bureau dispute is what obliges the furnisher to investigate under § 1681s-2(b).
• Keep every denial letter and adverse action notice. A company that takes adverse action based on a report must tell you and name the agency that supplied it (15 U.S.C. § 1681m(a)).
• Note dates, names and costs as they happen.

Our page on concrete harm in an FCRA claim covers the documents to keep in more detail.

The deadline

An FCRA claim must be filed by the earlier of two years after you discover the violation or five years after it occurs (15 U.S.C. § 1681p).

Have your file reviewed

If an error survived your dispute and it cost you something, send me your report, your dispute, the results and any denial letters, and I will tell you whether I see a claim. The FCRA lawsuit page explains what comes next. Contact the firm to have your report reviewed.

Admitted in Pennsylvania and New Jersey; available to appear pro hac vice in other federal courts.

Common questions

What damages can I recover under the FCRA?

For a negligent violation, your actual damages. For a willful violation, actual damages or statutory damages of $100 to $1,000, plus punitive damages the court allows. In either case the defendant pays your attorney’s fees if you win (15 U.S.C. §§ 1681n and 1681o).

How long do I have to file an FCRA claim?

Two years from the date you discovered the violation, and no more than five years from the date it happened (15 U.S.C. § 1681p).

Do I need a lawyer to prove damages?

You do not need one to dispute an error, but a lawyer can tell you what records will prove your losses. Talk to a credit report lawyer. You pay nothing unless we win.

You pay nothing unless we win.