Consumer Remedies for Violations of the FCRA
Consumers may bring a lawsuit against a Credit Reporting Agency for failure to comply with the FCRA. Actions may be commenced in state or federal court. For negligent violations, a consumer can recover actual damages together with reasonable attorney’s fees. Actual damages can include financial loss due to the denial of credit; or damages due to the loss of a job opportunity because of inaccurate information in a credit report. They may also include intangible damages such as emotional distress; injury to reputation; humiliation; and loss of sleep.
If a consumer can prove a willful violation of the FCRA, statutory damages of $100 to $1,000 may also be recovered, in addition to actual damages. A consumer need not prove actual damages if the violation was willful. Punitive damages may possibly be obtained for willful violations that are particularly egregious.
Liability of Furnishers of Information
Inaccurate information may be disputed directly with the furnisher of the information. However, there is no “private right of action” against a furnisher for failure to correct information in response to a direct dispute, i.e. the furnisher cannot be sued.
A furnisher can be sued under the FCRA for failure to conduct a reasonable investigation when a consumer disputes the information with a Credit Reporting Agency. It is only when information is disputed with a CRA that a consumer can bring an action against the furnisher under the FCRA.
Statute of Limitations Under the FCRA
Claims under the Fair Credit Reporting Act must be brought within two years of the date of discovery of the violation, but not more than five years from the date of the violation.
Andrew M. Doktofsky, P.C. | New York Fair Credit Reporting Act Attorney
Contact Andrew M. Doktofsky, P.C. at 631-812-7020 for a free consultation to determine if you can bring a lawsuit under the Fair Credit Reporting Act.