The Fair Credit Reporting Act (FCRA) is a federal law that protects consumers from inaccurate information being put on their credit reports. The major credit reporting agencies—Equifax, TransUnion, and Experian—can be held liable for an FCRA violation. Along the same lines, furnishers of information (creditors and third-party debt collectors) may also face liability. 

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.