Alleged Violations of the Fair Credit Report Act

When a credit bureau fails to properly report a bankruptcy discharge on an Illinois resident’s credit report, does the consumer suffer irreparable harm? According to a recent article in the Madison-St. Clair Record, a court in the U.S. District Court for the Southern District of Illinois will decide whether a group of credit bureaus and credit furnishers violated the Fair Credit Reporting Act by failing to make clear that a consumer’s particular debts were discharged through personal bankruptcy.
What rights does a consumer have under the Fair Credit Reporting Act (FCRA)? What are the available remedies when there is a violation?
Details of the Recent Lawsuit
What are the details of the recent lawsuit alleging violations of the Fair Credit Reporting Act? According to the article, the plaintiff filed a claim against a number of entities, including: TransUnion Consumer Solutions LLC, Experian Information Solutions Inc., Bank of America, and American Honda Finance. In the complaint, the plaintiff alleges that these defendants “failed to indicate that his debt was discharged in bankruptcy and that it was scheduled to continue on record until December 2019.”
What damages is the plaintiff seeking? The plaintiff first seeks compensatory damages. He contends that he has suffered economic losses related to the alleged FCRA violation, such as out-of-pocket expenses and increased costs for insurance and credit. In addition, the plaintiff seeks non-economic damages related to emotional distress. The plaintiff has also sought punitive damages, which typically are awarded only in egregious cases. Unlike compensatory damages, which are intended to compensate the victim for losses sustained, punitive damages are designed to punish the defendant for wrongdoing and to deter similar behavior in the future.
What kind of bankruptcy-related information can go on your credit report, and how long can it stay there? As an FAQ sheet from MyFICO.com explains, typically completed Chapter 13 bankruptcies can stay on your credit report for 7 years, while Chapter 7 bankruptcies can stay on your credit report for 10 years.
FCRA Protections for Consumers
Is the FCRA designed to protect specifically against the type of allegations levied by the plaintiff in the case mentioned above? According to a fact sheet from the FTC, the Fair Credit Reporting Act provides some of the following protections to consumers in Oak Park and throughout the country:
  • Anyone who uses information in your credit report must tell you if your file has been used against you;
  • You have the right to know what is in your credit file;
  • You have the right to ask for your credit score;
  • You have the right to dispute information that is incomplete or inaccurate in your credit report;
  • Consumer reporting agencies are required to correct or delete any information in your credit report that is inaccurate, incomplete, or unverifiable;
  • Consumer reporting agencies are prohibited from reporting negative information that is outdated;
  • Consumer reporting agencies are limited in terms of providing information in your credit report to others;
  • Employers are required to get your consent before obtaining information in your credit report; and
  • Consumers whose rights have been violated under the FCRA can seek damages from violators.
What are potential damages? This can vary depending upon whether you file a claim in state or federal court, but in general, plaintiffs can be eligible for actual damages as well as for attorneys’ fees.
Contact an Oak Park Bankruptcy Lawyer
Do you have concerns about information in your credit report related to your bankruptcy filing? An Oak Park bankruptcy attorney can answer your questions today. Contact the Emerson Law Firm for more information.
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