Considering Legal Action

If all your efforts have proven to be fruitless, and your derogatory entry is still on file, then it might be time to consider legal action against the collection agency or lender. It is best to get an attorney who has experience in this type of litigation.

As pointed out earlier, there is no real limit to the amount of punitive damages that you may seek. The array of punitive damages can range from psychological damage caused by a bad credit rating to job loss and denial of credit. If you can determine that the non-compliance was the result of negligence on the part of the credit bureau, then you may also wish to sue for actual damages, such as: Penalty fees, late payment fees, and any interest that may have accumulated.

The body that oversees that credit bureaus comply with the Fair Credit Reporting Act (FCRA) is the Federal Trade Commission (FTC). You should contact them immediately if you feel that your rights are being abused by a credit bureau. The FTC will then monitor your situation and determine the verity of the abuse. To file a case of abuse, you have to fill out a complaint form and file it with the FTC.

You may also want to consult the Code of Civil Procedures (available in most local libraries), and get in touch with the Attorney General of your State.

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