Consider this scenario: You’ve already tried everything you can to convince your creditors that the debts which got reflected in your credit report are not yours. You have already presented them proof. After countless phone calls and letter exchanges, the derogatory item still remains in your credit report and it’s killing your credit score, preventing other lenders from even considering your loan application. You have had it. Is it time to sue?
If you have exhausted all means to correct errors in your credit report and have coordinated with everyone concerned about it and still the item in question seems to stay there, the only recourse you have left would be to file a case against the creditor, the collection agency or even the credit bureau. Your quest to clean your credit report of items that shouldn’t be there is laudable. Not only will a lawsuit remove the debts that should be removed, it will also increase your credit score and allow you to redeem yourself from the bank who had previously denied you a loan or a mortgage because of it. In addition, you also stand to walk away with punitive damages ($1,000 at least) in the event that you will win your case.
But let’s face the hard facts as well. Suing creditors, collection agencies, and credit bureaus is going to be difficult. First of all, the laws vary from one state to the other. Except for the states of California and Massachusetts, it is virtually impossible or very difficult for individuals to sue a creditor under the Fair Credit Reporting Act. In these jurisdictions, the most that you can do is to report the matter to your state’s attorney general who has the power to sue a creditor for furnishing the wrong information.
Learn how to transform debt into wealth and become a millionaire by the time you retire.
Then there is the issue of looking for the right attorney who can handle your case. Just because you have a family lawyer doesn’t mean that he or she is the best person who can represent you against these creditors and credit bureaus who have their own legal teams. A consumer attorney is your best bet if you want to push through with your case since they are well-versed in the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). If you can’t find one through recommendations from friends, you can try going to the website of the National Association of Consumer Advocates or NACA at http://www.naca.net/. There you can click on the Find an Attorney tab. Although many of them will handle class action lawsuits, you are bound to find one who will be willing to handle your individual case.
The stress and financial requirements hiring a lawyer is going to entail is no doubt going to be enormous. However, if your main goal is to clean up your credit report, increase your credit score, and be credit-worthy in the eyes of creditors, then all the challenges that you will be facing will be well worth it.
More on Suing Creditors, Collection Agencies and Credit Bureaus