The Fair Credit Reporting Act (FCRA) gives you powerful rights to dispute inaccurate mortgage reporting. When servicers report false delinquencies, wrong balances, or fail to investigate disputes, FCRA claims create foreclosure leverage and potential damages. Learn how to use credit reporting violations in your defense.
Get Free Case ReviewThe Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) is a federal law that regulates the collection, dissemination, and use of consumer credit information. It imposes duties on three categories of entities: (1) consumer reporting agencies (Equifax, Experian, TransUnion), (2) furnishers of information (mortgage servicers, credit card companies), and (3) users of credit reports (lenders, employers). Under the FCRA, mortgage servicers that report to credit bureaus must ensure their reporting is accurate and must investigate consumer disputes.
FCRA as Leverage
FCRA claims don't directly stop foreclosure, but they create powerful settlement leverage. Servicers facing statutory damages of $100-$1,000 per violation — plus actual damages and attorney fees — are more willing to negotiate favorable loan modifications or settlements.
| Violation | Description | Statutory Basis |
|---|---|---|
| Reporting False Delinquencies | Reporting late payments during trial modification or forbearance | § 1681s-2(a) |
| Failure to Investigate Disputes | Ignoring or inadequately investigating consumer disputes | § 1681s-2(b) |
| Reporting Wrong Loan Balance | Inaccurate principal, interest, or fee amounts on credit report | § 1681s-2(a)(1)(A) |
| Mixed Files | Reporting another borrower's mortgage on your credit file | § 1681e(b) |
| Re-aging Debt | Manipulating the date of first delinquency to extend reporting period | § 1681c(a)(4) |
Inaccurate mortgage reporting violates the FCRA and gives you legal claims against your servicer. We'll help you dispute errors and assert your rights.