In the beginning of the eighties, there was a National Credit Adjusters lawsuit that claimed that certain credit bureaus were fixing credit reports without providing any services to consumers. It was a pretty vicious circle that began when the credit bureaus did not provide services like they should have to people, and the people did not report that they got screwed over. It was only when the lawsuit was filed in Federal Court and there were so many complaints from so many different people did the credit bureaus hear the complaints. They negotiated with the lawyers, settled the claims, and paid thousands in claims fees. The creditors lost lots of money. There was a class action suit as well, but that suit was eventually thrown out.
A similar lawsuit against the three major credit bureaus was brought by a group of former mortgage brokers.
They claimed that the credit agencies were fixing houses, taking money for their services, and telling the brokers to rip off the clients. It was only after the lawsuit was filed in Federal Court that the agencies actually had to admit that they were fixing accounts, and that they were changing the amounts that they owed the borrowers. The bureaus settled the claims and paid $600 million to settle the lawsuit. That was a pretty hefty amount, which is why this lawsuit was so vicious. After the settlement, however, it was discovered that the three major credit agencies had collectively lowered their scores by as much as 35 points!
This story is just one of many that went public, and they resulted in many congressional hearings. It also created quite a bit of media hype. It was really hard for the general public to understand all the legal jargon that was being used in these lawsuits. There were some things that the public just couldn’t grasp.
As a result, these lawsuits have become increasingly rare.
The big three agencies have already admitted that they screwed up and need to fix their ways. They have also promised to not do it again. Unfortunately, we don’t live in a world where the general public has an understanding of how the legal system works. So, unless someone explains these laws to us, these lawsuits will keep happening.
However, there is an upside to all of this. If you have been the victim of an agency’s actions, you are now eligible for compensation.
Even if you were a victim of a mistake by the agency and never filed a lawsuit, you may still be eligible to receive damages. You will want to talk to an attorney that specializes in this area of law, and see what your options are. Your situation may vary, but it is always worth talking to an attorney. They can tell you what your chances are of receiving damages.
There is hope. There are civil rights attorneys who specialize in this area of law. If you are willing to spend the time and money to find a good attorney, you may be able to successfully sue the companies responsible for your losses. These agencies act in our best interest, and this is why they need to be held accountable. If you have been the victim of their negligence, you should feel confident that you will win your lawsuit.