There are three major credit reporting agencies in the United States: Equifax, Experian, and TransUnion. These three companies are in the business of collecting and selling consumer data to potential lenders. Therefore, they have tremendous influence over people’s financial opportunities and general financial health. The reports they produce influence lender decisions, interest rates applied to loans, landlord decisions, employment, and overall creditworthiness. The power they have is significant.
When one of these credit reporting agencies, tasked with maintaining and providing lenders accurate credit reports, fails, the consequences to consumers can be significant, even life-altering. When a credit reporting agency does something wrong, taking legal action against them can be necessary. This article explores the key reasons someone might sue TransUnion, how to sue TransUnion, the laws that govern TransUnion operations, and common consumer issues.
The Laws Governing TransUnion
Recognizing the power that credit reporting companies have, Congress passed a strict legal framework under which they must operate. TransUnion operations are subject to the Fair Credit Reporting Act (the “FCRA”). This law provides guidelines and requirements for the accuracy, fairness, privacy, and dispute procedures for the information in credit reports. The FCRA holds agencies like TransUnion accountable for providing accurate information to creditors. The FCRA also grants consumers the right to access their credit reports without charge, dispute errors in those reports, and seek damages for violations.
In other words, the FCRA provides the rules for credit reporting. Violation of these rules is not just a mere mistake, it is a violation of federal law. Understanding the rules is the first step in understanding your rights when it comes to dealing with TransUnion. Consumer protection attorneys also make it their practice to hold companies like TransUnion accountable when their actions are wrong and create financial and reputational harm for you.
Sue for Ignored Disputes
When your credit report contains errors, or inaccuracies, the FCRA gives you the right to dispute them. You can file a dispute, and TransUnion must investigate and resolve it within 30 days. When TransUnion ignores these disputes, it means lenders, credit card companies, landlords, employers, and whoever else has an interest in your creditworthiness is receiving the wrong information. This can have horrible consequences for you, from being rejected for loans to higher interest rates to loss of a housing opportunity.
If TransUnion has ignored your dispute, they have done more than frustrate you, they have broken the law. TransUnion is legally obligated to investigate your disputes, and when it fails to do so, it violates the FCRA. The FCRA exists for a reason, and when TransUnion ignores it, you have grounds to sue.. While you want to correct your credit report information, you also want to uphold your rights and be treated fairly.
Sue for Inaccuracies in Credit Reports
TransUnion’s very purpose is to maintain accurate credit reports. That’s what lenders purchase from them, and that’s what hundreds of millions of consumers rely on. Inaccuracies in these reports can happen for various reasons: clerical errors, misreporting by creditors, mistaken identities, or even fraud. Sometimes, the reports could have been corrected if TransUnion had used a reasonable effort to make sure they were accurate as the FCRA demands.
Errors in credit reports can impact your finances. They can lead to financial setbacks, denied mortgage applications, and unfavorable loan terms. Therefore, TransUnion must use reasonable care in maintaining accurate reports. If there are errors and those errors arise from TransUnion’s negligence, TransUnion may have violated the FCRA, and you may have a legal cause of action. Taking legal action in such instances is about demanding compensation for the damage you’ve endured and also demanding that powerful credit reporting agencies use reasonable standards for maintaining the accuracy required by the FCRA.
Sue for Failing to Correct Legitimate Errors
Grounds for suing TransUnion also arise when TransUnion fails to correct legitimate errors on a credit report when you properly dispute those errors. This scenario is more than a mistake or an oversight. This is a direct violation of your rights under the FCRA, which states that when you dispute an error, TransUnion must investigate and correct verified inaccuracies.
When TransUnion fails to correct these errors, you stay in the same financially precarious position you were in before you caught the errors. Legal action might be necessary here to:
- Correct your credit report.
- Hold TransUnion accountable for not following the FCRA’s provisions on correcting inaccuracies in their credit reports.
- Receive compensation for the damage the error and the delay in fixing it has already cost you.
- Make sure TransUnion fairly and accurately reports your financial health for future loan requests.
TransUnion plays a pivotal role in the lives and financial well-being of millions of consumers. When TransUnion fails to follow the law, it fails in its most basic and most minimal duties, and the repercussions for consumers can be disastrous. Holding TransUnion accountable for merely following the law is wholly appropriate.
Understanding the laws that govern TransUnion, recognizing their responsibilities when it comes to disputes, and identifying inaccuracies in your credit report are all good first steps towards taking legal action. If TransUnion fails in any of its responsibilities, Consumer Attorneys is ready to assist you. We understand that lawsuits are serious. We also understand the importance of having an accurate credit report as well as the distress of having unresolved issues on your credit report. We understand because our attorneys care and have been helping consumers for years with very favorable results for our clients. Our team will advocate on your behalf, preserve your rights, ensure that TransUnion addresses and corrects these errors promptly, and get you the compensation you deserve. We are committed to making sure consumers get the full protection of the laws in place to protect them. We are committed to holding TransUnion accountable.