When it comes to protecting your financial well-being, credit monitoring services play a crucial role. These services closely monitor your credit files and alert you to any suspicious activity or potential fraud. With the rise in identity theft and cybercrime, having a reliable credit monitoring service by your side is beneficial.
Credit bureaus and the creditors who furnish information to them must follow state and federal law when it comes to your credit report. They have a massive responsibility as the keepers of the single document that will determine whether you can get a loan for something like a car or home. These companies must get everything correct and only report and maintain accurate information. If they make a mistake, the effect on your life is significant because you may be unable to get credit cards or even a place to live.
If a credit bureau or information furnisher has broken the law, you do not have to wait for the government to do something about it. While you should report them to the Consumer Financial Protection Bureau or your state attorney general, you can and should file a lawsuit against them directly. You may have the right to damages for the harm you have suffered, and you can even qualify for punitive damages. The first step is to contact a fair credit reporting act attorney today to discuss your case and learn about the next possible steps. They will then guide you through the legal process and protect your rights along the way.
In the meantime, you must be vigilant about monitoring your credit to dispute any errors and consider paying for assistance from a credit monitoring service.
Why Your Credit Report Is a Critical Document that Credit Bureaus and Other Information Furnishers Must Monitor
You want to avoid trying to obtain credit and having a lender deny you because you have a poor score and derogatory information. Some information on your credit report can take you by surprise because you had no idea it was there. You may have thought you had good or impeccable credit, only to have a rude awakening.
For better or worse, you are what your credit report says you are, as far as lenders are concerned. They do not care about you individually; all you are to them is a score and a series of information on your report. They are simply trying to assess one thing – whether you are creditworthy. They only want to take the risk of lending you money if they believe that they will get paid back. The credit terms you receive depend on what is on your credit report. If you are a risk, you may be unable to borrow money, or creditors may offer you a loan on poor terms.
You must monitor your credit report; if there is derogatory information, you have the legal right to challenge it. The Fair Credit Reporting Act allows you to bring any wrong information to the attention of the credit bureau. It must perform a reasonable investigation, although it can decline if it views your dispute as frivolous. Thus, you must know that certain inaccurate information is in your report when filing a dispute.
You Want Real-Time Alerts When Something Changes on Your Credit Score
Under federal law, you have the right to one free credit report from the three major bureaus each year. You do not have to pay for these reports, so it is best to take advantage of this opportunity to see what is on your credit report. Preferably, you should space out your requests so you can view a credit report every four months.
However, the information on your credit report is even more valuable when you can see it in real-time. For example, entries on your credit report can indicate that you have been a victim of identity fraud. If you can see this information right away, you can take action to prevent further harm. Quick access to your credit report is also a way to take faster action to initiate an appeal and clear up any wrongful information.
You can stay on top of your credit without taking the time to be proactive. Credit monitoring services can let you know when there is any change to your credit report. This way, you can take action when you have to to protect your credit.
How Credit Monitoring Services Can Help You
Credit monitoring services can alert you to the following:
- When someone opens a new account in your name
- When anyone has made a hard inquiry into your credit
- If there are any reports of late payments or liens
- If there is a significant change in your balances
- When accounts in your name are closed
These are all critical pieces of information that can impact your credit and ability to borrow money in the future. A credit monitoring service will provide instantaneous alerts as soon as something changes on your credit report.
Free services can still be of some value if you want to avoid spending money on credit monitoring, but paying for a credit monitoring service may be worth a small investment. You may also get credit monitoring through your bank or job. The services that cost money have more features, and there are different levels of plans that have additional features. Suppose hackers have stolen your personally identifiable information. In that case, the party that failed to safeguard it may even need to pay for credit monitoring for a certain amount of time.
Credit Monitoring Can Alert You to Identity Theft
Credit monitoring does not actively prevent identity theft or wrongful information on your report. It only lets you know what is happening so you can take action. You can still do things on your own to repair your credit and prevent yourself from being victimized by fraud.
Nonetheless, what you learn from credit monitoring can tell you you must do something.
If you have learned from credit monitoring that you may have been the victim of identity theft, you need to do the following immediately:
- Place an immediate freeze on your credit report so no one can make an inquiry and fraudsters cannot open an account in your name
- Close any accounts that someone has opened in your name
- Report the identity theft to law enforcement and the Federal Trade Commission so you can have documentation for creditors who are trying to collect on the debt
- Contact a consumer protection attorney if you need to take legal action against anyone
- Work with the credit bureaus to remove any derogatory information from your report that was the result of the identity theft
You Can Dispute Incorrect Information on Your Credit Report
Contact one of the three major bureaus to lodge a dispute if you learn any information you believe needs correction from credit monitoring services. You do not have to file a dispute with all three of the bureaus. If one of the bureaus investigates and determines the information is incorrect, their removal will extend to all three bureaus.
To file a dispute, you must explain your side of the story. If you have any documentation that backs up your story, you will provide it to the credit bureau. The law requires them to perform an adequate investigation under practically every circumstance. They can even face legal repercussions if they fail to do so.
The Fair Credit Reporting Act Protects You as a Consumer
As a consumer, your primary rights come from the Fair Credit Reporting Act (FCRA). This law has been on the books since 1970, and it recognizes the credit bureaus’ power over you as a consumer. Along with this power comes obligations that the bureaus must always uphold and ensure that only accurate information is in your report. When someone comes to their attention and shows that the reported information is incorrect, they must remove it.
Of importance here is that the bureaus have a limited amount of time to perform an investigation and correct any inaccuracies in your report. The credit bureau has thirty days to investigate a dispute and an additional five days to inform you of their findings. They may take an extra 15 days to respond if the credit bureau receives additional information during the 30 days.
The credit bureau must perform an adequate investigation of your dispute. If they find the information inaccurate, they must remove it from your report. However, they can continue reporting information that they verified was accurate. The dispute mechanism is one reason you must be vigilant about monitoring your credit and possibly using a service.
You Can Sue the Credit Bureau Directly Under the FCRA
You can take legal action if a credit bureau has failed to meet its obligations under the law. The FCRA gives you a private right of action to sue them directly, and you can obtain compensation for any number of violations. For example, the credit bureau can be responsible if they fail to perform an investigation or continue to report information that they cannot verify to be true. You may also have rights as a consumer under state law where you live.
You can also sue an entity that furnishes information to the credit reporting bureau if it is inaccurate. For example, if a creditor wrongfully reports that you failed to pay a debt, you can file a lawsuit against them for damages.
Suing a credit bureau directly under the FCRA can be challenging. Having a knowledgeable attorney by your side ensures you take all necessary legal steps and increases your chances of success. An attorney will thoroughly review your case, gather evidence, and determine the best course of action to pursue.
Your Damages in an FCRA Lawsuit
If you can prove a violation of the FCRA, you may have the right to the following in damages:
- Actual economic losses: You may have suffered losses because of a denial of credit that you were expecting, such as when you applied for a mortgage, and the lender rejected you.
- Statutory damages: The FCRA provides for statutory damages of $100 to $1000 for a violation of the law independent of economic losses.
- Punitive damages: Although exemplary damages are rare, you can receive them when you prove that someone willfully or recklessly violated the FCRA.
- Emotional distress: You can receive these non-economic damages even if you have not suffered an economic loss because of the credit bureau’s wrongful conduct
- Attorney’s fees: You may not have to pay your debt collection attorney out of your settlement or award proceeds. Instead, the defendant must pay attorney’s fees in addition to what they owe you.
It Costs Nothing Out of Pocket to Hire a Consumer Protection Attorney
Your consumer protection lawyer will review the facts of your case and determine how much compensation you should seek. Even if your case is only worth a little money, it is worth your time to do something. As a consumer, you have rights under the law that the credit bureau and information furnishers cannot violate. You have likely suffered damages and deserve compensation when someone has broken the law. It is always worth your time to try to do something about it, mainly because you do not have to pay anything out of your pocket to hire a debt collection attorney. Here, a lawyer will work for you on a contingency basis, meaning they only get paid if you win your case. Even then, the defendant will need to be the one who compensates your consumer protection lawyer.
Credit monitoring services can protect your financial health. With their experience and advanced technology, they provide an extra layer of protection, giving you peace of mind and the ability to take action in the event of any suspicious activity or identity theft. However, if a credit bureau breaks the law and causes financial harm, you must hire a consumer protection attorney. They will fight for your rights and ensure that you receive the justice you deserve.