False Credit reports and credit repair

[ces06]

What is the name of your state? NC

I'm a Mortgage Broker and I heard so many bad stories about theses credit repair places.
I used to work for a Collection agency years ago and knew the FCRA and FDCPA pretty well.

In the industry consumers can fall prey to so many things and I think these credit repair agencies can be another one. I need this advice from you to help protect anyone that comes across my desk from spending more than they have to. Consumers can dispute for free now anyway.

I was told by a credit repair place that they are able to remove things from people's credit by also sending along a little notice stating that if the creditor keeps reporting inaccurate information then they can be sued for 1,000.00 a month until it is corrected? Is this true at all? The only law I'm familiar with is being sued for a direct violation of the FCRA for 1,000.00. Didn't think it being inaccurate is one of the violations?

Is there ever an instance where a creditor is sued from wrong information on a report?

ThanksWhat is the name of your state?

 

[seniorjudge]

What is the name of your state? NC

I'm a Mortgage Broker and I heard so many bad stories about theses credit repair places.
I used to work for a Collection agency years ago and knew the FCRA and FDCPA pretty well.

In the industry consumers can fall prey to so many things and I think these credit repair agencies can be another one. I need this advice from you to help protect anyone that comes across my desk from spending more than they have to. Consumers can dispute for free now anyway.

I was told by a credit repair place that they are able to remove things from people's credit by also sending along a little notice stating that if the creditor keeps reporting inaccurate information then they can be sued for 1,000.00 a month until it is corrected? Is this true at all? The only law I'm familiar with is being sued for a direct violation of the FCRA for 1,000.00. Didn't think it being inaccurate is one of the violations?

Is there ever an instance where a creditor is sued from wrong information on a report?

ThanksWhat is the name of your state?

Here's some info...maybe you are already familiar with it.


Standard answer on expired SOL and/or validation and/or dispute letters. There are thousands of posts similar to yours on this forum so I have prepared a standard answer.

SOL (Statutes of limitation are DEFENSES to lawsuits; they do NOT provide a method to stop someone from suing you. This defense means when they sue you, you answer with the defense that it is barred by the SOL.)

http://www.bcsalliance.com/y_debt_sol.html

http://www.fair-debt-collection.com/Disputing_Collections/SoL-dispute-letter.html


Validation letter samples you can get at :
www.creditinfocenter.com
and www.creditboards.com


Disputes: You can write a letter of dispute to the three credit reporting agencies.

Go this website to find instructions and samples for how to dispute: http://www.creditinfocenter.com/creditreports/

Sometimes errors are easy to remove and sometimes they stick like glue. It is inexpensive to try and not difficult.

I am NOT a creditor-debtor lawyer; stand by for further help.

I am NOT vouching for the accuracy of these websites!

Debt settlement:

https://forum.freeadvice.com/showthread.php?t=293829

 

[Chien]

The "credit repair place" is a bit right and a bit wrong.

Furnishers of information have a duty to ensure it's correct or not knowingly inaccurrate:

§ 623. Responsibilities of furnishers of information to consumer reporting agencies [15 U.S.C. § 1681s-2]
(a) Duty of furnishers of information to provide accurate information.
(1) Prohibition.
(A) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate.
(B) Reporting information after notice and confirmation of errors. A person shall not furnish information relating to a consumer to any consumer reporting agency if
(i) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and
(ii) the information is, in fact, inaccurate.
(C) No address requirement. A person who clearly and conspicuously specifies to the consumer an address for notices referred to in subparagraph (B) shall not be subject to subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify such an address.

Fines for violations differ depending on whether the violation is knowing or negligent:

§ 616. Civil liability for willful noncompliance [15 U.S.C. § 1681n]
(a) In general. Any person who willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of
(1)(A) any actual damages sustained by the consumer as a result of the failure or damages of not less than $100 and not more than $1,000; or
(B) in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or $1,000, whichever is greater;
(2) such amount of punitive damages as the court may allow; and
(3) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(b) Civil liability for knowing noncompliance. Any person who obtains a consumer report from a consumer reporting agency under false pretenses or knowingly without a permissible purpose shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or $1,000, whichever is greater.
(c) Attorney's fees. Upon a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.

§ 617. Civil liability for negligent noncompliance [15 U.S.C. § 1681o]
(a) In general. Any person who is negligent in failing to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of
(1) any actual damages sustained by the consumer as a result of the failure;
(2) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorney's fees as determined by the court.
(b) Attorney's fees. On a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorney's fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper.

The best thing you could tell clients is that the repair shops don't do anything they couldn't do themselves.

 

[ces06]

thank you both very much this will be so helpful. It's been a few years since I was directly invloved in credit. I feel better that you both agree with me that the client can do whatever these other places can do. They would learn a lot and save a bit of money too.

 

[ces06]

Just trying to subscribe to the thread