FCRA attorneys specialize in credit reporting laws and can help protect the rights of consumers. Inaccurate information in a background check or credit report can cut off access to opportunities and financial resources. A good FCRA attorney can help consumers dispute errors on their reports, including accounts that don’t belong to them, inaccurate payment histories and even signs of identity theft. They can also help consumers develop comprehensive policies and processes for their businesses that comply with FCRA requirements.
Inaccurate information in a credit report can make it difficult for consumers to secure loans, get mortgages and even find jobs. In some cases, it can lead to significant harm such as high debt collection balances, wrongful foreclosures and identity theft. A skilled New Jersey FCRA attorney can help consumers get their credit reports fixed and recoup damages caused by the inaccuracies.
New Jersey FCRA attorneys help clients dispute credit bureau errors by filing formal dispute letters, communicating with credit reporting agencies and furnishers of consumer information, and requesting investigations to correct the issues. They can also assist with implementing credit freezes on consumers’ accounts to prevent identity theft and scams. In cases where errors persist despite efforts to resolve them informally, they can pursue litigation and other remedies.
If a consumer is denied access to employment or a loan because of errors on their credit report, it’s considered an adverse action under the FCRA. This can have a devastating effect on the life of the individual and the economy at large. The good news is that the law allows individuals to sue CRAs, credit bureaus and creditors for statutory damages in certain instances where the violation was willful or in reckless disregard of FCRA regulations.
Consumers also have a right to a free annual credit report from each of the three big CRAs. This enables consumers to stay informed about their credit reports and detect inaccuracies and signs of identity theft early on. They can also limit access to their credit reports so that only entities with a legitimate purpose, such as lenders, insurers and employers can obtain them.
The law requires CRAs and furnishers to clearly state what their purpose is when they request a consumer’s report. They must also tell the person when their information will be used, if they’re denying an application for credit or insurance or changing terms of an existing credit agreement. FCRA violations that are willful or in reckless disregard of the rules can result in fines and other penalties for the violators.
An employer must have an express written consent from a job applicant before conducting a background check. If they fail to do this, the employer could be in violation of the FCRA and may face costly lawsuits from applicants who claim their rights have been violated. For example, this month a class action was granted against Chuck E Cheese’s for failing to provide job candidates with a separate background screening disclosure form.