False Credit Report? Know Your Rights Under the Fair Credit Reporting Act

Have you been denied a credit application due to a false credit report and do not understand why? Have you looked up your credit score and found out it was much lower then you anticipated it would be? If this is the case, you may be the victim of one or multiple credit reporting agencies spreading false and inaccurate information about your credit history.

The Effects of False Credit Reports

Credit reporting agencies are used by every major industry to determine if a person is going to be approved to take out a mortgage, rent a place to live, take out a credit card, buy a car, and even get a job. When a credit reporting agency creates a false credit report, it spreads that information like wildfire affecting every facet of the consumer’s life. Making matters worse, when one credit reporting agency spreads false and inaccurate information, it is usually picked up by the others, multiplying the amount of damage a false credit report does to your life.

Consumer Rights Under the Fair Credit Reporting Act

Through the Fair Credit Reporting Act, you have the right to bring an action against every one of the credit reporting agencies that have spread this faulty information.

The Fair Credit Reporting Act requires credit reporting agencies to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual. Under the Act, you have a good deal of rights you can exercise:

• You have the right to be told what information is being used against you. If a company or individual has used a credit report to deny your application for credit, you have the right to know what credit report was used against you and what credit reporting agency supplied it.
• You also have the right to know what specific information is being used in your file at a credit reporting agency.
• And you have the right to dispute any false statements and demand the credit reporting agency fix them.
• Lastly, you are entitled to sue any and all of the credit reporting agencies that violated the Fair Credit Reporting Act for the effect the reports have had on your life.

A False Credit Report Can Cause a Great Deal of Damage

We all understand the importance of good credit. Whether it is a mortgage for a new home, a loan in an emergency, or even a new job, we pay our bills on time so that when we need it, our credit applications are approved. This is why the Fair Credit Reporting Act ensures that consumers who have suffered the negative consequences of an unfair and inaccurate credit report have the right to seek justice and be compensated in court.