If a consumer thinks that their credit report is inaccurate, they can dispute it and file a report with the CRA, which initiates a reinvestigation duty. In this process, there must be a reasonable examination of the dispute and a correction of any errors present.
Usually, the inaccuracies contained in a report can be corrected very quickly by a CRA – and an agency has 30 days after the notice of a dispute to amend any inaccuracy.
At Citron & Citron, we have had great success reining in these individual claims because we have not seen many cases wherein a consumer can prove substantial damages.
Credit Reporting Agencies Must Correct Any Errors That Are Found
The agencies that I represent reinvestigate challenges because it is their statutory obligation to do so.
When they do, they normally will find the inaccurate information and redact it from that report and provide the individual with an updated report that doesn’t contain any inaccuracies.
Correcting Report Errors: Do You Have to Prove That The Error Was Not Due to Negligence Or Non-Compliance?
CRAs have many defenses available to them in these matters.
Of course, a CRA has to do reasonable due diligence in its reinvestigation. However, if there is a legal dispute on a credit reporting agency act, there is no obligation to fix the issue.
To clarify, a CRA is not responsible for resolving the legal dispute – but it is responsible for performing a reinvestigation to take care of any errors that may be in the disputed report. This is a reasonable procedure and the court uses this standard to eschew negligent liability.
After a dispute is raised, the CRA must provide proper notice to the third-party source that furnished the information which has been disputed. Then, the CRA must modify or delete any inaccurate or unverifiable information. Finally, a CRA will provide the reinvestigation report to the consumer for their records, proving the error was fixed.
Once An Error Is Corrected By A Reporting Agency, How Long Does It Take For The Correction To Take Effect?
The CRA has 30 days to resolve a dispute and send proof of the correction back to the consumer. Most agencies strive to do this as quickly as possible – and some agencies will correct an error the very same day they get a dispute.
Do You See Frivolous Complaints Or Suits Filed by the Consumers Against Your Clients?
If there is an indication that a frivolous suit has been filed, I will immediately contact the opposing counsel and explain to them why the case does not have any merit. We then try to resolve the matter informally and cost-efficiently because that’s in the defendant’s (CRA) best interest.
If the opposing counsel for the plaintiff doesn’t listen, I will begin to prepare the case.
In doing this, we will work to establish that the consumer can’t provide evidence of a negligent or willful violation of the statute. Then, if we can get rid of those claims, we can often file a motion to end the case. If the court agrees, the case will be thrown out.
Should Reporting Agencies Ever Counter In The Case Of A Frivolous Claim?
Counter suing on these claims in California is often a form of “putting good money after bad.”
Instead, it’s typically best to try and convince the opposing counsel that the claim isn’t worth pursuing and to get rid of it, rather than chasing it in the other direction.
This is because, to counter sue, you must prove that there was no reasonable merit in the plaintiff’s proceeding forward, which is a very fairly high standard to reach.
When An Attorney From Citron & Citron Comes In?
The majority of my clients reach out to me only after a case has been filed. Because of this, 95% of the cases that I handle are already in litigation before they ever reach my desk.
A lot of these are “blind lawsuits”, meaning that no demand letter requesting monetary compensation was sent to the CRA or the furnisher/third party vendor before the lawsuit was filed.
This means that we often come in when a lawsuit is filed and we immediately get to work defending it.
For more information on Stakes for Credit Reporting Agencies in a Claim, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (310) 450-6695 today.