Having some credit extended to you is necessary if you live in the United States. Credit cards come in handy if you have an emergency or need extra money for a special occasion. When you open a new credit card, make an early payment, make a late payment, or default on a credit card, it is reported to the credit bureau.
If you owe money on a credit card, it can lower your credit rating. You may also get harassing calls from the company to which you owe money. They may call you at home or even at your workplace. A collection agency may garnish your wages, leaving you with no way to pay your bills.
Companies that extend credit and collection agencies must follow the rules of the Fair Credit Reporting Act. If they do not, you can sue them. According to the FCRA Lawyers at Agruss Law Firm, you may be able to sue a company that violates these rules. You may even be able to have the debt wiped off your credit.
A willful violation means a credit entity was reckless with your information or did not follow its obligations with the FCRA.
There are several common violations of which you should be aware.
Requesting A Credit Report For Illegitimate Reasons
A company or individual needs a legitimate reason to request your credit report from one of the three major credit reporting agencies. The Fair Credit Reporting Act states that there must be a “permissible purpose” for running a person’s credit.
These reasons may include:
- Credit card applications
- Home loan applications
- Utilities
- Apartment rental
- Employment
- Insurance
- An order of the court
- Written permission by the individual
Some shady companies may try to pull your credit when they do not have a legitimate reason to do so. A company cannot run your credit for an involuntary debt. For example, if you are parked in an illegal spot and your car was towed, the towing company cannot run your credit.
An employer is allowed to run your credit, but only if they have your written consent. If a property owner pulls your credit when your rent is late, it may be considered an FCRA violation.
They should only pull your credit if they are processing an application or if they have a judgment against you. If someone other than a creditor is suing you, it may be illegal for them to pull your credit report. A professional attorney will be able to tell you if the reason someone ran your credit is legitimate.
Not Following Debt Dispute Procedures
When a debt collector calls you, e-mails you, or sends you a letter in the mail, they must inform you of your Mini Miranda rights. They should state the name of their company and state, “This is an attempt to collect a debt, and any information obtained will be used for that purpose.”
If a collection agency calls you about a debt that you believe you do not owe, or if you discover a debt you do not recognize on your credit report. You have the right to dispute that debt. The agency must investigate your claim. If the debt is invalid, they must remove it from your report.
False Reporting
Collecting debts is a rough job. Debt collectors get yelled at all day, and sometimes it makes them angry. They might increase the amount of debt you owe out of spite or even create additional debt on your report.
Debt collectors can also make clerical errors. They may misplace a decimal point causing you to owe more than you actually do. They might put in the wrong year and make it look like you have owed a bill far longer than it has actually been due.
Seeking Damages
Receiving repeated calls from collection agencies at work can ruin your professional reputation. False charges on your credit history can stop you from getting housing, transportation, or credit cards.
You can sue a collection agency for damages, and there are no limits on the dollar amount of damages you can request. You may even be able to recover your attorney fees in some states. The courts are strict on credit rights violations, and you may be able to seek punitive damages.
Bad credit can have a negative impact on your life. If you think a collection agency or creditor has violated your credit rights, you should contact a lawyer specializing in FCRA matters.
