False Credit Information? 3 Scenarios Where You Can Sue For Damages And Win

Is incorrect information on your credit report ruining your life? If so, the law is on your side. If you find incorrect information on your credit report, you can file a dispute to have the information removed. Granted, sometimes getting debt collectors and creditors to comply is extremely difficult. However, you can sue for damages under the Fair Credit Reporting Act if they don't remove the false information.

There are also a few scenarios where you can sue immediately without going through the hassle of trying to get the agency to remove the information. In all of these scenarios, debt collectors are using unfair debt collection practices in an industry that is heavily regulated. Following are three scenarios where you can sue your creditors for damages associated with incorrect information and win.

Identity Theft

Debt collectors are not allowed to collect money for a debt that was levied against you due to identity theft. For example, if someone takes out credit cards in your name, debt collectors have to stop collection activity and remove the item from your credit report as soon as you show them a police report or ID theft affidavit. If they refuse to remove the item or continue to try to collect money from you, they are in violation of the law.

Court Win

If someone believes that you owe them money, they might take you to court. If, at the trial, it is found that you do not owe the debt, the creditor or debt collection agency has no choice but to remove the item from your credit report. However, not all comply. If you have won a lawsuit involving a disputed debt and the agency is still trying to come after you or is still reporting that you owe them money, you have a very solid case.

Settled Debt

Debt collectors will often offer to settle a debt for much less than you actually owe. For example, a debt collector might agree to accept $600 to settle or cancel out a $1,000 debt. If you make such an agreement with a collector an pay the agreed amount, they have to mark the item as paid in full on your credit report. They cannot say you still owe $400. It is illegal to do so. 

As you can see, there are several scenarios where you can sue creditors and debt collection agencies for damages that you incur due to their unfair collection practices. If you feel that you are being dealt with unfairly, do not hesitate to contact an attorney in business law to learn more about your rights under the law.