Class Action Lawsuit Against Credit Reporting Agencies

Your credit report is one of the most valuable sources of information that lenders will use to determine your creditworthiness. As such, credit reporting agencies are required to maintain accurate credit reports. 

Unfortunately, credit reporting agencies will often make mistakes and errors that can cost consumers financially, and emotionally. When this happens, you may need to take legal action against them. Find out whether a class action lawsuit is appropriate when you contact a credit report lawyer at Berger Montague for legal guidance and support.

woman discussing her case with her attorney

Contact a lawyer for help getting started on a class-action lawsuit against a credit reporting agency.

What Is a Class Action Lawsuit?

A class-action lawsuit is a type of legal proceeding where a single plaintiff, or a small group of plaintiffs, file a lawsuit, known as a class-action lawsuit, where the goal is to recover for everyone affected by the credit bureau’s illegal conduct, not just person or small group of people who filed the lawsuit. If a class-action lawsuit is successful, the settlement or judgment awarded will be divided among all of the members of the class equitably. 

Class action lawsuits are often one of the few ways people can pursue their cases because when individual plaintiffs attempt to pursue their cases on their own, the legal costs can quickly become insurmountable. 

Amounts recovered in class-action lawsuits can be paid out in a variety of ways. Sometimes they are paid out in equal amounts to all class members. Other times, they are paid out differently to different people who may have been harmed in different ways. Each party’s recovery will be evaluated to determine whether to fairly compensate them from the total settlement approved by the judge.

When Might You File or Join a Class Action Lawsuit Against a Credit Reporting Agency

Credit reporting agencies are responsible for the information contained in your credit report and background checks. When there is inaccurate or misleading information on your credit report or background check, it could have a devastating impact on your life. Some of the more common ways your life could be affected if there is wrong or false information on your credit report include:

  • Your report falsely shows you were arrested, charged with, or convicted of a criminal offense
  • Your report may include information that is not yours. In these circumstances, your report falsely shows that you opened up lines of credit, purchased homes, gained tenancy, or opened up utility service accounts in your name, without your consent
  • A false report may cause you to lose job opportunities, housing opportunities, and financial partnerships due to inaccurate information on your credit report
  • Suffering emotional distress and trauma from false reporting or someone else’s information being on your report. 
  • Being forced to pay exorbitant deposit fees or interest when obtaining credit after being victimized by identity theft or credit reporting errors
  • Dealing with considerable financial losses that come with credit report errors, including accounts being sent to collection and penalties for inaccurate or false information

If your life has been turned upside down after learning that your credit report or background check contained inaccurate or false information, it is important that you take steps to address these errors as soon as possible. However, it is also important to take steps to hold negligent credit reporting bureaus accountable.

Common Mistakes Credit Reporting Agencies Make

Credit reporting agencies can make seemingly endless mistakes. They are handling vast quantities of data on virtually every adult in the United States, often using outdated and old computer systems. However, due to the fact that credit reports and background checks can have such an important impact on people’s lives, the law provides them we few excuses for their mistakes and errors. 

There are some types of credit reporting mistakes made more frequently than others by credit reporting bureaus. Some of the most common include incorrect personal information, misreporting someone as deceased, inaccurate reporting, and management issues. 

Incorrect Personal Information

One of the top mistakes made by credit bureaus, including TransUnion, Experian, and Equifax, are inaccurate reports including the wrong personal information. Some of these mistakes could include:

  • The wrong name
  • The wrong phone number
  • The wrong address  
  • Inaccurate accounts as opened through identity theft
  • Mixing up consumers’ information due to similar or same names

If you have any of the above on your credit report it makes sense to see assistance, as having wrong information or someone else’s information on your credit report can be a sign of identity theft, or of the credit reporting bureaus mixing your information with someone else’s information. 

Misreporting Someone as Deceased

There are a few ways in which you could accidentally be reported as deceased on your credit report. Being reported as deceased generally means no one will give you credit, as when you apply for credit using your own information, the creditors assume that you are attempting to commit identity theft by using a dead person’s information. Misreporting someone as deceased can happen in a variety of ways. Sometimes the error stems from your current creditors, who may mistakenly report that you have died to a credit bureau. This can happen, for example, if you are a joint account holder with someone else, such as a spouse, and your spouse has died. Alternatively, it could be the result of a data processing error by either your creditor or one of the credit bureaus.  Many, banks, credit card companies, and credit reporting bureaus consult data from the Social Security Administration (SSA) about who has made claims for death benefits. The SSA’s database, referred to as the Death Master File, contains all kinds of information about people who the SSA believes are dead. Unfortunately, when creditors and credit bureaus attempt to cross-reference this information they often make mistakes. So, you may be misreported as dead simply because you have a similar name, date of birth, address, or social security number to someone who died. 

Incorrect Reporting and Management Issues 

Credit reporting bureaus also have trouble with inaccurate reporting and data management issues, such as:

  • Other peoples’ information being included on a consumer’s credit report
  • Debts being listed multiple times
  • Debts being listed with different names
  • Being reported as the owner of an account as opposed to an authorized user
  • Closed accounts being reported as open
  • Inaccurate reports of accounts being late or delinquent
  • Inaccuracies in the dates of the opening of the account, the last payment date, and the date the account was first listed as delinquent
  • Accounts being listed with inaccurate balances
  • Accounts being listed with incorrect credit limits
  • Reinsertion of incorrect information after mistakes have already been corrected
  • Accounts appearing multiple times with different creditors
  • Falsely reporting consumers as having filed for bankruptcy
  • Misreporting the status of debts after a bankruptcy

Attempting to Resolve Issues with Credit Reporting Bureaus

When you first learn that there is a problem with your credit report, you can reach out to a credit report lawyer for help dealing with credit reporting bureaus. In dealing with the credit reporting bureau, the goal is to get the inaccurate information removed and corrected to accurately reflect your credit score and background check. 

However, credit reporting agencies have been known to refuse to make changes or delay in correcting inaccurate information. When this happens, you may have no other choice but to move forward with a class-action lawsuit with help from a reputable credit report lawyer.

Get in Touch with a Credit Report Lawyer Today 

If you are interested in learning more about whether you have the right or opportunity to join or file a class-action lawsuit against a credit reporting bureau, you have come to the right place. 

Our dedicated credit report lawyers at Berger Montague can help you get justice. Fill out our convenient contact form or call our office to schedule your no-cost, risk-free consultation, and find out what legal options may be available to you.