When you have have been trying to correct your bad credit report, and exhausted all options…yes you can sue the credit bureaus. Many people do not realize this.

 

When you see errors on your credit report you would think that it would be very easy to correct. WRONG. The creditors, such as department stores, banks, mortgage companies, and credit-card companies that provide the inaccurate information to the credit bureaus, appear to be the only ones who can change the inaccurate information.

 

You complain to the credit bureaus that the information they are reporting is wrong but they do not appear to be concerned. They just keep on reporting what the creditor tells them. It is up to you to correct your own report with your hands tied behind your back. That is exactly how it feels.

 

The Fair Credit Reporting Act, which governs how credit is reported, states that only attorney general for your state may sue a creditor for providing inaccurate information about you.  It also states that if the creditor doesn’t correct the inaccurate information permanently and in a reasonable time, you have the right to sue.  This is true even though the Fair Credit Reporting Act does not explicitly state that you have that option.

 

What can you sue for?  You can sue for defamation; negligent enablement of identity fraud; violations of the Fair Credit Reporting Act. There have been successful cases won in federal court involving credit bureaus that did not rectify the credit reports of innocent consumers who were victims of identity theft.

 

There are three main credit bureaus in the United States : Equifax, TransUnion, and Experian.

 

I strongly recommend creating a paper trail when dealing with the credit bureaus. You will need this paper trail should you decide to pursue legal action. You must prove to the judge that you really tried to work with the credit bureaus to correct the inaccurate information.

 

I found a wonderful e-book called The Consumer’s Guide to Suing Creditors, Credit Bureaus and Collection Agencies.  At press time, it is available for purchase at $10.95 from www.creditinfocenter.com.

 

This article courtesy of Peggy Elrod, from www.breathingprosperity.com.

Peggy Elrod is a credit consultant and Prosperity Coach. For further information please visit www.breathingproseprity.com or email peggy@breathingprosperity.com