December 5, 2022

What Damages Can Be Recovered After a Fair Credit Reporting Act Violation?

The contents of your credit score can impact your ability to take out loans for a house or car or even your ability to rent an apartment. Since your score affects almost every aspect of your finances, monitoring your credit information is important.

The Fair Credit Reporting Act (FCRA) is a federal government legislation created to promote fairness, privacy, and accuracy of consumer information collected by consumer reporting agencies (CRAs) or credit bureaus. If a CRA violates your rights under the FCRA, you have a right to sue for damages.

How Can I Take Legal Action For FCRA Violations?

Under the FCRA, you can file a claim for FCRA violations in federal court or state court. An FCRA claim is made when you challenge the accuracy or fairness of a CRA, and the agency fails to correct improper reporting. The jurisdiction where you bring the claim should be where you reside or where the CRA is headquartered.

How Long Should I Wait After a Violation To Take Legal Action?

In New York, the statute of limitations to claim violations made by the FCRA is two years. This means you have two years from the date of the discovery of the violating act to pursue legal action.

What Can I Recover For FCRA Violations?

Many types of damages are available when credit reporting agencies do not follow the FCRA. The FCRA provides laws that allow consumers to seek damages if a credit reporting agency violates those laws. According to The FCRA, you can receive the following three types of compensation.

Attorney Fees

As a consumer, you can recover attorney fee damages, which are awarded to cover the costs of hiring an attorney. In addition to receiving attorney fee compensation, you might also receive compensation if any actions by the opposing party are made in bad faith.

Actual Damages

Actual or compensatory damages are the amount you receive to cover the losses or financial injuries you suffered due to an FCRA violation. According to the FCRA, you are entitled to actual damages for FCRA violations if they resulted from negligence or were committed willfully. Provided you can justify the loss, the damages you can obtain are not subject to any limit.

Punitive Damages

Punitive damages are usually granted in addition to actual compensation and serve as a punishment to the defendant. If a violation of the FCRA causes excessive harm or damage, there is a likelihood that the court will order the defendant to pay punitive damages as a penalty for their actions.

Get in Touch with Our New York FCRA Attorneys

To learn more about the damages available in an FCRA lawsuit in New York, Contact us online or call (212) 595-6200 to discuss your case details with our attorneys.

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