Illegal Credit Reporting
Credit reporting agencies are required to accurately report credit. If they fail to do so, then the individual can demand that they correct the records. This demand is made in writing by way of a certified letter. As soon as a credit reporting agency receives that letter, they are obligated by law to respond to it. If they do not respond to it and do not make the necessary correction within thirty days then they are required to remove the blot from the credit record.
Bankruptcy discharges are listed by credit reporting agencies but the effect of the bankruptcy discharge depends on the creditor who reads the report. A bankruptcy discharge removes debt so a bankruptcy discharge is the first step to rehabilitation of credit. Until the debt is removed, credit cannot be fully restored.
In the event that a credit reporting agency refuses to correct an illegal credit report, it can be liable for damages.