Fair Credit Reporting: Accuracy Obligations of the CRBs

The Fair Credit Reporting Act ("FCRA") is a federal law that sets rules and guidelines that Credit Reporting Bureaus ("CRBs") a/k/a Consumer Reporting Agencies ("CRAs") must follow when reporting on the credit of a consumer.  Some well known CRBs are Equifax, Transunion and Experian.  Not only does the FCRA impose liability (see: fault) on CRAs for reporting faulty information, it further requires that CRAs utilize reasonable procedures to ensure maximum possible accuracy of the information in a report.

All of this legalese means that you, the consumer, have a right to an accurate and correct credit report.  If you suspect that there is a false information on your credit report, this is what you should do:

1. Obtain a copy of your credit report.  This can be done for free once per year from each of the three major bureaus.  Annual Credit Report Again, this is free.
2. Determine which bureau is reporting the false information - it could be one or all three.
3. Send a dispute letter in writing to the appropriate CRB.

• Send the letter certified - keep a copy of the proof of service.
• Do not email this letter.
• Identify as much information as you can about the false information within the letter (i.e. your name, address, account numbers, etc.)
• Enclose a copy of your report with the bad information on it.
• Allow 30 days for a response from the CRB.
• Send the letter certified - keep a copy of the proof of service!!!

If the CRB fails to properly conduct an investigation into the bogus item on your report, they might be liable for damages to you.

Remember that the FCRA is a federal statute which provides protection for consumers from inaccurate information.  This means that the information must be false.  Accurate reports of delinquent payment history - no matter how frustrating - do not create liability.

The source, cause and or reason for a mistake in a consumer credit report can be very difficult to determine.   You should never assume that a faulty piece of information creates liability on the part of the CRB.  Furthermore, a large factor in assessing a claim brought under the FCRA is the amount of damages (financial, emotional and other types of harm) caused to the affected consumer. 

If you have been significantly harmed by false information contained within your credit report, it is in your best interests to consult with an attorney experienced with the FCRA and consumer protection laws.  For more information please visit the following websites:

Federal Trade Commission

National Association of Consumer Advocates

Attorney Mark A. Laws

New Consumer Rights Under Dodd-Frank

About 18 months ago, President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank" for short) into law.  As a consumer attorney, I am very pleased and excited with this 2000 page piece of legislation.  As a consumer, especially home owners, you should be ecstatic.

Dodd-Frank strengthens some of the United States' most consumer friendly federal laws.  Included in this category are the Truth in Lending Act ("TILA"), Real Estate Settlement and Procedures Act ("RESPA"), Fair Debt Collection Practices Act ("FDCPA") and the Fair Credit Reporting Act ("FCRA").  In addition to revising the above mentioned statutes, Dodd-Frank also created the Bureau of Consumer Financial Protection ("Bureau"), a new federal agency to oversee the banks and other financial institutions.

More than a year after the passage of Dodd-Frank, many of us in the legal community are still unclear as to how far reaching the new regulations will be, the Bureau has the authority to make many of the new rules that will go into place.  We do know a few things.

1.  Consumer Protection is increased substantially, especially relating to mortgage lending and servicing.
2.  Statutory damages (civil penalties that can be imposed against banks) have increased.
3.  The ability of consumers to fight banks and obtain awards (including court costs and attorney's fees) has increased.
4.  More regulations and rules are on the horizon.

The long and the short of it is that you, the homeowner, have significant rights under federal law when it comes to your mortgage, your credit report and the way that the banks communicate with you.  If you are facing difficulties with your mortgage or your credit report, or if you suspect errors or fraudulent conduct has been committed by the bank, you need to seek the advice of a consumer protection attorney in your area with experience in this field.

Launch

Welcome to my first blog post.  By way of introduction, I am a solo practicing attorney located in downtown Chicago.  About 60% of my practice revolves around mortgages, mortgage foreclosures and homeowner protection.  The rest is made up of some bankruptcy, consumer fraud/protection, real estate and a bit of small business creation.  The landscape for foreclosure work has changed drastically since 2008 and it continues to do so.  It is my goal to stay abreast of current cases as well as share war stories with other consumer attorneys and consumer clients.  I hope that this blog will aid in that goal.

In the coming weeks and months you can expect this feed to populate with various stories and sources relating to consumer law and consumer protection.  I hope to share my knowledge and experiences from the "field" (Cook, Lake, DuPage, Will county Circuit Court) with all of you.  I am always open to feedback via email and would love to hear from other attorneys or consumers about their experiences (win, lose or draw) with similar matters.


All the best in 2012 to all of you!

Welcome!

This is the first post on the blog of The Law Office of Mark A. Laws!