--------------------------------------------------------------- Summary After you have tried
to contact the creditors and have gone through
their appeals process, you can sue a creditor
in small claim's court for violating consumer
protection laws.
More
Details on Suing Creditors/Bureaus Taking
a creditor/credit bureau to small claims court
can be effective in helping to solve your
immediate problem with your creditor. Whether
it be a creditor who has violated your rights
in reporting incorrect items on your report
or a credit bureau that incorrectly leaves
these items on your report (even after you've
provided sufficient evidence to the contrary).
This option may also help bring about lasting
reforms in some of the credit and collections
practices. In an ideal case, if enough consumers
are successful in enforcing the consumer protection
laws, which will cost these corporations money
to fight and in judgments paid, ultimately,
their practices will change accordingly.
A single violation of consumer protection
laws can make the violator liable for $1,000
to $2,500 in statutory damages (automatic
damages), once you prove the violation in
Small Claims Court. The very reason the law
allows these statutory damages is to encourage
consumers to take these violators to court.
More
Info on Helpful Precedents and Laws Taking
a creditor/credit bureau to small claims court
can be effective in helping to resolve some
issues you encounter with them. This is a
list of some categories that you can take
creditors and credit bureaus to court for,
with some help around the court precedent
or law that is on your side as well as an
idea of the damages you can ask for.
This is not a cumulative list and this is
only for informational purposes only. The
Credit Help Guide is not a legal service and
cannot guarantee the accuracy and timeliness
of this information.
Who:
Creditors that report your credit history
inaccurately Allegation:
Defamation, financial injury Precedent/Law:
Nelson vs. Chase Manhattan
US Court of Appeals, Ninth Circuit, No.
00-15946, decided 03-01-2002 Damages:
Damages incurred by injured party, as proven
in court
Who:
Creditors that pull your credit report without
permissible purpose Allegation:
Injury to your credit report and credit
score Precedent/Law:
FCRA § 604 (a)(3); Andrews v.
TRW Inc.
US Court of Appeals, Ninth Circuit, 225
F.3d 1063, decided 10-04-2000; FTC Staff
Opinion Letters: Coffey, Bauchner, Throne,
Gowen, Benner, Woolford, Landever, Long,
Tatelbaum, Tatelbaum (#2) Damages:
Statutory damages of $2,500 for each proven
violation
Who:
Credit Bureaus that fail to respond to your
written disputes within 30 days (though
they get a 15 day extension if they receive
information from the creditor within the
first 30 days) Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FCRA § 611 (a)(1); FTC Staff
Opinion Letters: Tabler, Cohan (#2) Damages:
Statutory damages of $2,500 for each proven
violation
Who:
Creditors, Collection Agencies, or Credit
Bureaus that 're-age' your account by falsely
updating the date of last activity on your
credit report to keep negative information
longer on your report Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FCRA § 605 (c) Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Credit Bureaus that reinsert a deleted item
from your credit report without notifying
you in writing within 5 business days Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FCRA § 611 (a)(5)(B)(ii) Damages:
Statutory damages of $2,500 for each proven
violation
Who:
Credit Bureaus that refuse to correct information
after being provided proof of their error Allegation:
Defamation, willful injury, violoation of
consumer protection provided in the FCRA Precedent/Law:
FCRA § 623; Cushman v. Trans
Union Corporation. US Court of Appeals for
the Third Circuit Court, 115 F.3d 220, filed
D.C. No. 95-cv-01743, decided 06-09-1997 Damages:
Damages incurred by injured party, as proven
in court; Statutory damages of $2,500 for
each proven violation
Who:
Collectors that call you after 9 pm at night
or before 8 am in the morning Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 805 (a)(1) Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that call you at job if they
know or have reason to know (because you
told them) that your employer prohibits
you from receiving such calls Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 805 (a)(3) Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that call any third party, such
as friends, neighbors, relatives, etc.,
about your debt; exceptions: they may contact
your attorney, consumer reporting agencies,
the creditor or the attorney of the creditor,
or the attorney of the debt collector Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 805 (b); FTC Staff Opinion
Letters: LaScuola, Halverson, Jones, Borowski,
Zbrzeznj, Fisher, Atteberry, Kwait Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that continue to call or write
after you have sent a 'stop contacting me'
letter Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 805 (c) Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that claim they will garnish
your wages, seize property, or have you
arrested before having obtained a judgement
(from a court) that they may be able to
garnish wages or seize property. Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 807; FTC Staff Opinion
Letters: Klayman Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that cash a post-dated check
before the date on the check Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 808 Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that cost you money by making
you accept collect calls or COD mail Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 808 Damages:
Statutory damages of $1,000 for each proven
violation
Who:
Collectors that take or threaten to take
any personal property without a judgment Allegation:
Violation of consumer protection provided
in the FCRA Precedent/Law:
FDCPA § 808 Damages:
Statutory damages of $1,000 for each proven
violation
In
Brief
Consumer protection
laws does allow an avenue for consumers to sue
creditors and/or credit bureaus when all else
fails
There are many reasons why
you can take a creditor or credit bureau to Small
Claims Court, some include not removing incorrect
items, contacting you inappropriately, contacting
relatives or employers inappropriately, etc.
This is usually a last
resort and involves going to Small Claims Court
