A credit report affects more than the ability to borrow money. This report affects nearly every aspect of your financial life, from getting a job or apartment to securing low-cost auto or other insurance. When credit reporting agencies or background check companies make mistakes, or rely on erroneous or outdated information, the consequences can be serious, unfair, and far-reaching.
The experienced New Jersey Fair Credit Reporting Act lawyers at HKM help consumers protect their rights under federal and state laws. These rights include the right to access credit reports and the right to challenge information on that report. Furthermore, and perhaps more importantly, our Paterson, NJ, Fair Credit Reporting Act lawyers hold companies accountable for inaccurate or unlawful credit reporting.
What is the Fair Credit Reporting Act (FCRA)?
This federal consumer protection law regulates the ways credit reporting agencies, background check companies, and information furnishers collect, report, and use consumer data. Various federal agencies, including the Consumer Financial Protection Bureau and the Federal Trade Commission, enforce this 1970 law, which requires credit reports to be:
- Private: Before the FCRA, vague statements of character usually served as credit reports. These reports often included probing details about personality, habits, and health. Furthermore, individuals were helpless to correct errors.
- Fair: The FCRA replaced character statements with objective information and empowered consumers to address errors. This objective information must be the same for everyone, regardless of background.
- Accurate: Despite the FCRA’s requirements, thousands of credit reports contain inaccurate, outdated, or otherwise inaccurate information. Post-bankruptcy credit reports are a good example. Frequently, credit reporting companies list discharged accounts as active ones.
- Legitimate Use: In New Jersey, prohibited purposes include accessing a report out of curiosity, for personal disputes, harassment, marketing, or revenge. Employers may not obtain credit reports without proper disclosure and consent, and landlords or lenders must have valid transactions involving the consumer. Penalties for unauthorized access to a credit report in New Jersey include statutory damages and attorneys’ fees.
Common companies covered by the FCRA include credit bureaus like Experian, Equifax, and TransUnion, as well as tenant screening companies and employment background check providers.
New Jersey Fair Credit Reporting Act lawyers focus on enforcing individual rights when legal violations occur.
Common Fair Credit Reporting Act Violations
FCRA violations are widespread and often go unnoticed. Even a small error can result in denied credit, lost job opportunities, or other damage. A skilled New Jersey Fair Credit Reporting Act attorney can determine whether your rights were violated.
Employment Background Check Violations in New Jersey
The use of credit reports during background checks probably goes back to the pre-FCRA days of character profiles. Today, many FCRA cases arise from employment background checks. Employers must follow strict rules before using a consumer report to make hiring or firing decisions. Under the FCRA, employers must:
- Obtain written authorization before running a background check,
- Provide a pre-adverse action notice if they plan to take negative action,
- Give the applicant a copy of the report and a summary of rights, and
- Allow time to dispute inaccuracies.
If an employer in New Jersey denied you a job, fired you, or withheld a job benefit, such as a promotion, based on a flawed background check, New Jersey Fair Credit Reporting Act lawyers can help you pursue a claim.
Tenant and Housing Screening Errors
Landlords frequently rely on tenant screening reports that contain errors. These reports may include incorrect eviction records (different time deadlines usually apply in these cases, so this information usually falls off credit reports faster), criminal history, or credit data. When housing is denied based on inaccurate information, the impact can be devastating.
A New Jersey FCRA lawyer often successfully challenges unlawful tenant screening practices and obtains compensation for wrongful denials. This compensation usually includes money for economic losses, such as out-of-pocket costs, and non-economic losses, such as pain and suffering.
Your Rights When You Dispute Credit Report Errors
The FCRA not only bars credit report use in many situations. It also protects consumer rights when they dispute information.
After a consumer disputes incomplete or inaccurate credit report information, the credit bureau normally has thirty days to investigate the matter. This investigation must be prompt, thorough, transparent, and fair. Afterwards, the credit bureau must deliver written notice of the outcome to the consumer. That outcome must be based solely on the facts gathered during the investigation.
Furthermore, the credit reporting company must make things right. Amending information, leaving no indication of the amendment, is not enough. Additionally, the credit bureau or consumer must send amended reports to any party that received inaccurate information, whether or not that party relied on that inaccurate information.
When credit bureaus ignore disputes or conduct sham investigations, they may be liable under the FCRA. New Jersey Fair Credit Reporting Act lawyers regularly take action against companies that fail to meet their legal obligations.
How New Jersey Fair Credit Reporting Act Lawyers Help
FCRA cases are technical and document-intensive. An experienced Paterson, New Jersey Fair Credit Reporting Act attorney:
- Reviews your credit and background reports,
- Identifies all potential FCRA violations,
- Gathers dispute records and correspondence,
- Files claims against credit bureaus, furnishers, and employers,
- Negotiates settlements or litigates in court, and
- Protects you from retaliation or further harm.
Many FCRA cases can be handled without upfront legal fees, as the law allows successful consumers to recover attorneys’ fees.
State Law Protections for New Jersey Consumers
In addition to the federal FCRA, New Jersey consumers may have additional protections under state consumer protection and employment laws. A local New Jersey Fair Credit Reporting Act attorney understands how to combine federal and state claims to strengthen your case.
This local knowledge is especially important when dealing with New Jersey employers, landlords, and businesses that rely on consumer reports.
When selecting an attorney, look for experience in consumer protection law, familiarity with FCRA litigation, and a track record of standing up to large corporations. The right lawyer will explain your rights clearly and strongly advocate for you.
Connect With a Dedicated Passaic County Lawyer
Paid and unpaid medical leave helps employees be more productive at work. For a confidential consultation with an experienced Family Medical Leave Act lawyer in Paterson, contact HKM Employment Attorneys LLP. The sooner you reach out to us, the sooner we start working for you.
