How to Spot an FCRA Violation

(and What to Do Next)

The federal Fair Credit Reporting Act (FCRA) protects your privacy and ensures that information in consumer reports—credit, tenant, and employment background reports—is accurate, fair, and used only for permitted purposes. Federal Trade Commission

Below is a practical, step-by-step guide to (1) find errors, (2) dispute them the right way, and (3) understand when you may have a legal claim.

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Quick checklist: Common errors that trigger FCRA disputes

• Mixed/merged files (someone else’s accounts on your report). CRAs must follow “reasonable procedures” to assure maximum possible accuracy. Legal Information Institute

• Identity-theft accounts that should be blocked once you provide required proof. Legal Information Institute

• Obsolete items (e.g., most negative items older than 7 years; 10 for bankruptcies), or the 7-year clock run from the wrong start date. FindlawUS Code

• Impermissible hard pulls/inquiries without a legally permissible purpose. Legal Information Institute

• Reinserted information after deletion without required notice to you. Legal Information Institute

• Employment background check problems (no proper pre-adverse action notice with a copy of the report and FCRA rights before a decision). US Code

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Step-by-step: From finding an error to filing a lawsuit

1) Pull all your reports (free)

Get your Equifax, Experian, and TransUnion reports at the only official site: AnnualCreditReport.com. (It’s mandated by federal law; beware look-alikes.) Annual Credit Report

Also identify any specialty CRAs (tenant, employment, check-writing, medical, insurance). The FCRA covers these too. Federal Trade Commission

2) Flag the exact inaccuracies

Circle/mark: accounts that aren’t yours, wrong balances/limits, duplicate tradelines, wrong dates, obsolete negatives, identity-theft entries, or unauthorized pulls. Keep statements, police/FTC ID-theft report, letters, emails—anything that proves the error. (CRAs must use reasonable accuracy procedures.) Legal Information Institute

3) Dispute in writing with the CRA(s) — and often with the furnisher

Send a specific dispute to each CRA reporting the error. The CRA must reinvestigate—generally within 30 days (up to 45 days if you add documents later or if the dispute followed a free annual report). Legal Information Institute Consumer Financial Protection Bureau

You can also send a direct dispute to the furnisher (bank, lender, collector, telecom). Furnishers must reasonably investigate and report results to you and correct the CRAs. Consumer Financial Protection Bureau Legal Information Institute

Tip: Include the specific item, why it’s wrong, and copies (not originals) of support. Keep proof of mailing.

4) Review the results

The CRA must give you written results and a free updated report. If information is deleted, the CRA must take steps before any reinsertion, and notify you if it happens. If it calls your dispute frivolous, it must tell you why and what info it needs. Legal Information Institute

5) If the error isn’t fixed

• Complain to the CFPB and attach your documents. Investopedia

• Consider legal action. Depending on the conduct, you may recover actual damages (e.g., credit denials, emotional distress), and in willful cases statutory ($100–$1,000) and punitive damages, plus attorney’s fees. (For negligent violations, actual damages and fees.) Legal Information Institute

• Deadlines matter: An FCRA lawsuit must be filed no later than the earlier of 2 years after you discovered the violation or 5 years after it occurred. Legal Information Institute

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Who commonly causes the errors?

These are categories frequently involved in FCRA issues (not accusations about any specific company):

• Nationwide CRAs: Equifax, Experian, TransUnion. GovInfo

• Furnishers that supply data to CRAs: banks/credit-card issuers, auto lenders, mortgage servicers, student-loan servicers, debt collectors, telecom & utilities—each must investigate and correct disputes they receive. Legal Information Institute

• Specialty CRAs: tenant screeners, employment background check companies, check-verification and medical information services. Federal Trade Commission Consumer Advice

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Types of FCRA claims (plain-English)

• Inaccurate reporting by a CRA (failure to use reasonable accuracy procedures). §1681e(b). Legal Information Institute

• Failure to reasonably reinvestigate a dispute or improper reinsertion/notice failures. §1681i. Legal Information Institute+1

• Impermissible access/inquiry (no permissible purpose). §1681b. Legal Information Institute

• Identity-theft “block” violations (failure to block within 4 business days with required documents). §1681c-2. Legal Information Institute

• Furnisher violations (no reasonable investigation or failure to correct after notice from a CRA). §1681s-2(b). Legal Information Institute

• Employment background check violations (no stand-alone disclosure/authorization or no pre-adverse action notice with a copy of the report and Summary of Rights). §1681b(b). US Code

• Failure to provide full file disclosure upon request (Section 609/§1681g; CFPB 2024 advisory clarifies your right to a complete file disclosure). Legal Information InstituteGovInfo

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How to write an effective dispute (mini-template)

• Subject: FCRA Dispute – [Your Name], [Last 4 of SSN], [DOB]

• I dispute the following item(s): [Creditor/Collector], account # [XXXX].

• Why it’s wrong: [e.g., not mine / balance wrong / obsolete / identity theft].

• What I want: Delete or correct to [accurate info].

• Attached: Copies of [ID, statements, police/FTC report, correspondence].

• Please reinvestigate under 15 U.S.C. § 1681i and send written results. Legal Information Institute

Send to each CRA reporting the error; also send a direct dispute to the furnisher if appropriate. Consumer Financial Protection Bureau

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When to call a lawyer

• The CRA/furnisher verified information you know is wrong

• You suffered a credit denial, higher rates, job or housing loss

• You see identity-theft accounts that aren’t being blocked

• The company pulled your report without a permissible reason

• You’re getting the run-around or “frivolous” labels despite detailed proof

A lawyer can help preserve evidence, meet statute-of-limitations deadlines, and pursue damages available for willful or negligent violations.

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Important notes

• This page is general information, not legal advice. State laws (for example, California’s additional reporting rules) may provide extra protections on top of the FCRA. Federal Trade Commission

• For the official Summary of Your Rights under the FCRA, see the FTC’s notice (often included with pre-adverse action letters). Consumer Advice