A mistake on your credit report can cost you thousands—higher interest rates, denied mortgages, even lost job opportunities. If a credit bureau or creditor has damaged your credit with inaccurate information, federal law gives you powerful tools to fight back and recover damages.
This guide explains your rights under the Fair Credit Reporting Act (FCRA) and how to pursue a claim.
The Fair Credit Reporting Act (FCRA)
The FCRA requires credit bureaus and companies that furnish information to them to:
- Maintain accurate records – Use reasonable procedures to ensure accuracy
- Investigate disputes – Conduct meaningful investigations when you dispute errors
- Correct mistakes – Remove or fix inaccurate information
- Protect your privacy – Only share your credit information for permissible purposes
Recent FCRA Settlements and Cases
CFPB Sues Experian (2024)
The Consumer Financial Protection Bureau filed suit against Experian for conducting “sham investigations” that failed to properly address consumer disputes. The lawsuit alleges Experian systematically ignored evidence consumers provided.
TransUnion – $23 Million Settlement (2025)
According to Top Class Actions, TransUnion agreed to pay $23 million to resolve claims that it unlawfully failed to investigate disputes or remove challenged inquiries from credit files.
Honda Financial – $12.8 Million (2025)
The CFPB ordered Honda Financial Services to pay $12.8 million after finding that inaccurate credit reporting harmed 300,000 Honda and Acura drivers.
CoreLogic “Deceased” Errors – $5.695 Million (2024)
According to ClearStar, CoreLogic settled for nearly $6 million after incorrectly listing consumers as deceased on their credit reports when they were actually alive.
TruthFinder & Instant Checkmate – $5.8 Million (2024)
The FTC required these background check companies to pay $5.8 million for deceiving consumers about criminal records and violating FCRA requirements.
Common Credit Report Errors
- Accounts that aren’t yours – Mixed files with someone who has a similar name
- Incorrect payment history – Payments marked late when you paid on time
- Wrong account status – Closed accounts showing open, or vice versa
- Outdated information – Negative items that should have aged off
- Identity theft accounts – Fraudulent accounts opened in your name
- Incorrect balances – Wrong amounts owed
- Duplicate accounts – Same debt listed multiple times
- Wrong personal information – Incorrect name, address, or Social Security number
Damages You Can Recover
Actual Damages
- Higher interest rates you paid due to lower credit score
- Denied credit applications
- Lost job opportunities (if credit check was involved)
- Emotional distress from dealing with errors
- Time spent disputing errors
Statutory Damages
For willful violations, you can recover $100-$1,000 per violation even without proving actual damages. The Eleventh Circuit has held that you don’t need to prove actual damages to recover statutory damages for willful FCRA violations.
Punitive Damages
Available for willful violations to punish particularly bad behavior.
Attorney’s Fees
The FCRA requires defendants to pay your attorney’s fees if you win—making it easier to find a lawyer willing to take your case.
How to Dispute Credit Report Errors
Step 1: Get Your Free Credit Reports
Request reports from all three bureaus at FTC’s Free Credit Reports guide—you’re entitled to one free report per bureau per year.
Step 2: Identify Errors
Review each report carefully and document any inaccuracies.
Step 3: Dispute in Writing
Send a dispute letter to the credit bureau(s) identifying:
- Each item you’re disputing
- Why it’s inaccurate
- Supporting documentation
Send by certified mail with return receipt requested.
Step 4: Bureau Investigation
The bureau must investigate within 30 days (45 days if you provide additional information) and report results to you.
Step 5: Dispute with Furnisher
Also dispute directly with the company that provided the inaccurate information (creditor, collection agency, etc.).
When to Sue
Consider legal action if:
- The bureau fails to investigate your dispute
- They conduct a superficial “sham” investigation
- Errors aren’t corrected after proper dispute
- Corrected errors reappear on your report
- You’ve suffered significant damages from the errors
Statute of Limitations
You must file suit within 2 years of discovering the violation, or 5 years from when the violation occurred—whichever is earlier.
Frequently Asked Questions
Do I need a lawyer for FCRA claims?
While you can file pro se, FCRA cases are technical and complex. Many consumer rights attorneys take these cases on contingency because the law requires defendants to pay attorney’s fees.
Can I sue all three credit bureaus?
Yes, if each one has errors on your report and failed to correct them after proper dispute.
How long do negative items stay on my report?
Most negative items: 7 years. Bankruptcies: 7-10 years. If items appear longer, that’s a violation.
What if the error was caused by identity theft?
File an identity theft report with the FTC at IdentityTheft.gov, then use that report when disputing with bureaus. They have additional obligations for identity theft victims.
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