If you’ve recently reviewed your credit report and noticed inaccurate or suspicious information, you’re not alone. Every year, thousands of consumers across the country discover errors on their credit reports that can lead to serious consequences. In some cases, these errors are the result of identity theft or simple clerical mistakes. In others, they stem from fraudulent or malicious actions by creditors, debt collectors, or even credit reporting agencies themselves. Regardless of the circumstances of your case, our seasoned New Mexico fraudulent credit reporting lawyers are here to help. Contact Feferman, Warren & Mattison for an initial consultation today.
What is Fraudulent Credit Reporting?
Fraudulent credit reporting refers to any inaccurate or misleading information added to your credit report without a legitimate basis, and it can arise from intentional misconduct or carelessness by creditors, collection agencies, or the credit reporting agencies (CRAs) themselves, such as Equifax, Experian, or TransUnion.
Under the Fair Credit Reporting Act (FCRA), consumers have the legal right to accurate and complete information in their credit reports, and if a credit bureau includes information that is false, outdated, or improperly verified, it may be violating federal law. Likewise, any entity that supplies incorrect data to the bureaus, known as “furnishers,” also has legal obligations to ensure the information is correct and updated. Some of the most common examples of fraudulent or inaccurate credit reporting are as follows:
- Accounts that don’t belong to you: This may be a result of identity theft, mixed files (where someone else’s information is mistakenly reported on your file), or fraudulent activity.
- Inaccurate balances or payment histories: Creditors may report inflated balances, missed payments that were never actually missed, or claim an account is in default when it’s current.
- Re-aging of old debts: Debt collectors sometimes attempt to make a debt appear newer than it actually is, extending the time it stays on your report and reviving time-barred debt.
- Duplicate accounts: One debt may appear multiple times, giving the false impression that you owe more than you actually do.
- Incorrect personal information: Wrong addresses, Social Security numbers, or employers can point to a deeper problem with how your credit data is being managed.
- Fraudulently opened accounts: If someone uses your identity to open a credit card, loan, or other account, it will often appear on your credit report unless it’s caught and removed.
- Reporting a discharged debt: After bankruptcy, certain debts should be reported as discharged. If a creditor continues to show these as active, it can severely damage your score.
- Failing to update resolved disputes: If you’ve successfully disputed a charge or account, but the report is not updated accordingly, the credit agency may be in violation of the law.
- Accounts included in bankruptcy not being marked as such: This can mislead future lenders and lower your credit score unfairly.
- Misuse of account status: Marking an account as “charged off” or in collections when it is not, or reporting it as late when it was paid on time.
These examples are not just frustrating; they can be financially devastating. Fortunately, our seasoned New Mexico consumer lawyers are here to help.
How Can Fraudulent Credit Reporting Affect Me?
The consequences of inaccurate credit information can ripple through almost every aspect of your financial life. Even a single mistake left unresolved can lead to long-term damage. If fraudulent or inaccurate data appears on your credit report, you could face:
- Denial of credit: Lenders may refuse to approve a mortgage, auto loan, credit card, or personal loan based on incorrect derogatory entries.
- Higher interest rates: If you’re approved for credit, it might come with unfavorable terms due to a lower credit score.
- Employment issues: Many employers run credit checks as part of the hiring process. Errors can result in missed job opportunities, especially in financial or sensitive roles.
- Insurance premium increases: Insurers may rely on credit data to determine your risk profile, meaning a damaged report could lead to higher premiums.
- Housing difficulties: Landlords often review credit reports before leasing a property. Fraudulent reporting can mean being denied housing altogether.
- Emotional and psychological stress: Constantly dealing with collections, disputes, or unexplained denials can take a serious toll on your well-being.
- Difficulty accessing utilities or opening accounts: A poor credit history can interfere with your ability to get a cell phone, internet service, or even set up electricity in a new home.
What Steps Should I Take Once I Discover It?
When consumers find errors on their credit reports, federal law gives them the right to dispute those inaccuracies and demand an investigation. The Fair Credit Reporting Act (FCRA) outlines the general process that credit bureaus and furnishers must follow once a dispute is raised. Here’s what typically happens:
- Credit reports are reviewed and compared. Many people begin by obtaining their credit reports from the three major bureaus to confirm the error.
- Inaccurate entries are formally disputed. Disputes are generally made in writing to both the credit bureau and the company that supplied the information. Supporting documents may be included to clarify the error.
- An investigation period begins. The credit bureaus usually have about 30 days to investigate and respond to a dispute.
- Outcomes vary depending on the findings. Some errors are corrected quickly, while others persist or reappear—sometimes in violation of the law.
- If errors remain uncorrected, or if the credit bureau fails to comply with its legal obligations, our legal team is here to help.
At Feferman, Warren & Mattison, we can help you evaluate whether your rights under the FCRA, New Mexico’s Unfair Practices Act, or other consumer protection laws have been violated. If so, you may be entitled to actual damages, statutory damages, punitive damages, and attorney’s fees.
Contact Our Albuquerque Fraudulent Credit Reporting Lawyers
If you believe you’re the victim of fraudulent or inaccurate credit reporting, contact the consumer lawyers at Feferman, Warren & Mattison for a free consultation today. We proudly serve clients throughout Albuquerque and across New Mexico, and we stand ready to fight for you, too.
