What can I recover for a credit report error under the FCRA?
For a willful violation, the FCRA (15 U.S.C. 1681n) allows statutory damages of $100 to $1,000 even without proven harm, plus punitive damages and attorney fees. For a negligent violation (15 U.S.C. 1681o), you recover only your actual damages plus fees. Actual damages include denied credit, higher interest rates, and emotional distress.
What is the difference between willful and negligent FCRA violations?
A willful violation is a knowing or reckless disregard of the FCRA and unlocks statutory damages ($100-$1,000) and punitive damages. A negligent violation is a careless failure to follow the law and limits you to actual damages. Repeatedly ignoring a dispute or reinserting deleted errors often supports a willfulness argument.
Do I have to dispute the error before suing?
For claims against a furnisher (the bank or lender that reported the data), yes: you generally must first dispute the item with the credit bureau, which triggers the furnisher’s duty to investigate. If they fail to correct a verified error, your claim arises. Claims against the credit bureau itself for inaccurate reporting also usually require a prior dispute.
How much are emotional distress damages in an FCRA case?
Emotional distress is recoverable as actual damages and varies widely. Courts have awarded anywhere from a few thousand dollars to six figures depending on the severity, duration, and documentation (denied mortgage, embarrassment, medical treatment for anxiety). Contemporaneous notes, denial letters, and testimony strengthen the claim.