How to Sue for a Credit Rating Loss Due to Another Person's Actions
- 1). Dispute any credit report errors as soon as you notice them. The credit reports from the three major bureaus (Experian, TransUnion and Equifax) can contain different information. File a dispute for every erroneous entry on your credit report with both the responsible credit bureaus and the creditor who made the entry. If you have documentary evidence supporting your assertion, include a copy in your dispute. Each credit bureau offers an online disputation form. Use that form to file your initial dispute. Send a letter to each creditor who has made an error on your credit report using the return address that they provide on their billing statements. If every credit bureau reports the same error, you may only need to report it to one of them as long as you also contact the creditor responsible.
- 2). Wait for a response from the credit bureaus with which you filed disputes and the creditor who made the error. The FTC requires that the credit bureaus investigate and respond to your allegations within 30 days of receiving them. If the creditor does not alter the entry when requested during the course of the credit bureaus' investigation, you have grounds for a lawsuit under the FCRA.
- 3). Contact a debt lawyer if you would like to pursue a lawsuit. Before a suit is filed, the lawyer will draft letters requesting that the credit error be repaired. This is an important preliminary step to establish that the creditor has refused reasonable attempts to cooperate and correct the error.
- 4). File a lawsuit against the debt collector or individual that resulted in the false credit report. The FCRA covers most grounds for credit report-related lawsuits, but you can also sue for defamation and financial injury in addition to those violations. If the creditor also violated the Fair Debt Collection Practices Act (FDCPA) in attempting to collect the debt from you improperly or fraudulently, they may be liable for further damages.
- 5). Wait for the judge to decide your case. If you provide sufficient proof of your complaints, the trial should be over quickly. If the creditor doesn't show up for the trial date, you will be awarded a default judgment and any errors on your credit report will be erased.
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