When you are denied a loan, you may be surprised, especially if your credit score is good and you’ve never missed a payment. However, the denial might not be because of you, but rather errors on your credit report. Unfortunately, despite their importance in the lives of consumers, credit reporting errors are common and can take a toll on your life. As such, the following blog explores what you should know about seeking damages in the event you have been negatively impacted by the inclusion of incorrect information. You’ll also discover the importance of connecting with a Michigan credit report error lawyer to help you navigate these difficult matters.
What Credit Reporting Errors Are Common?
Credit reporting errors typically fall into one of two categories: personal information errors and inaccurate account information. Errors regarding your personal information include misspelled names, incorrect social security numbers, outdated addresses, and even mistakenly reporting you as deceased. These mistakes typically do not have a direct result on your credit report, but they can result in the denial of your loan applications. Errors in your account information include reporting closed accounts as open, listing debts twice, failing to remove a bankruptcy filing from your report, reporting incorrect account balances, and including outdated information.
Unfortunately, these errors can drastically impact your life. Not only can the inclusion of this incorrect information cause your credit score to plummet, making it difficult to open new accounts and obtain loans, but loans you are approved for will likely have astronomical interest rates. As a result, you can end up paying more every month on loans.
In addition, the discovery of incorrect information on your account can result in stress and anxiety, which not only impact your mental health but can also take a toll on your physical health. For example, you may develop insomnia or high blood pressure as a result of the stress you feel due to these inaccuracies.
What Damages Can I Seek?
First and foremost, it’s important to understand that when credit reporting errors impact your life, the law is on your side. Under the Fair Credit Reporting Act (FCRA), you have the right to accurate information on your report. In the event that errors occur, you have the right to dispute this information,n and the reporting agency must conduct an investigation into the matter. If they conclude that there is an error on your credit report, the agency must remedy the matter.
It’s important to understand, however, that you can seek damages if you have been negatively impacted by errors on your credit report. Generally, under the FCRA, you are entitled to up to $1,000 in damages for each violation you have been subject to. However, you can also seek compensation for both economic and non-economic damages. This includes any direct monetary losses you suffered as a result of the errors, like high interest rates or loan denials. You can also fight for economic damages, which represent the emotional losses you’ve endured, like insomnia, depression, or humiliation.
As you can see, credit reporting errors can have a significant impact on your life, which is why it’s critical to connect with an experienced attorney at Lyngklip & Associates to discuss your rights in these difficult times. We understand how overwhelming it can be to fight for the justice you deserve, which is why we will do everything possible to help you during these difficult times. Contact us today to learn more.
