Can I sue a credit bureau for false derogatory info that results in damages?

Question

I have a collections account that is so not mine that Experian is not removing, a hospital bill from a city I don't even live in. In the meantime, my mortgage company closed down my line of credit due to the derogatory item per a letter they sent me. Can I sue Experian for ruining my finances due to an item I disputed is not mine and within a few items they supposedly investigated to determine is accurate? (I disputed the item late yesterday afternoon and by early this Saturday morning they notified me that it is supposedly accurate and updated my report to reflect this finding).

Answer 1

When you dispute an item with the credit bureau, they contact the creditor and ask for verification.  The creditor pretty much just comes back and says yes that's right -- no proof needed.

At this point you should send certified, return reciept letters to the listed creditors requesting validation of the debt to include copies of contracts or other documentation that would prove the debt is yours. Give them 30 days.

If they fail to respond, dispute the item with the credit bureau again attaching a copy of your validation request and indicating the creditor failed to validate.  The item will be removed.

If the collector does respond, you should have all the proof you need that the debts are not yours and can dispute it with the creditor and the credit bureau.

You might be able to sue for the damage to your credit.  However, it isn't a do it yourself project, can be pretty time consuming, and won't get you much compensation.  You would be better to concentrate on getting the error corrected and moving on.

Answer 2

You need to go through to collection agency to get this dealt with right away. Ask them for proof that the debt is yours, and to send you copies of that bill. Go to creditinfocenter.com and research how to do this. But you can't sue credit bureau they are going by what collection agency says. Go for the collection agency.

Answer 3

YOU CERTAINLY CAN, The Fair Credit Reporting Act has the guidelines, and says that only the attorney general has the standing to sue a credit bureau.  

That said, if you have followed the outline steps to correct the FALSE, AND DAMAGING  info and it isn't corrected within any timely way, and IF you can establish you have been damaged because of that--

THEN!!! OF course, then you CAN sue the credit bureau.

Just type into a search engine, words like:\

"Credit Bureau Sued"  and you can see for yourself it has been done!

David vs. Goliath -- sure, but then again,

DAVID WON THAT ONE,

Sue the creditor who is damaging you and the credit bureau helping them to do it, too!  

Answer 4

Bdancer's advice is accurate..except the last part.

Yes you can sue for damages that result from having incorrect info placed on your report.  But unless you follow a specific procedure, and give the creditor a chance to correct it first, you don't get far.

There is a portion of the FCRA laws that allows the creditor to use the "oops" defense.....basically it was a clerical error and if they had "only known about it they could have fixed it".  So you need to follow Bdancers advice first.

IF you can prove the creditor was notified about the error....

and IF you can prove the credit bureau was notified.....

Then you can sue.  Any damage that resulted from this inaccurate can be collected.  If you can also show this was willful non-compliance you can also collect punitive damages.

This is where I really disagree with Bdancer...if you find a good lawyer you can collect thousands of dollars in punitive damages.  Search for a consumer attorney who belongs to the NACA (Yahoo for it) and contact them.