One in five Americans has an error on at least one credit report, according to a landmark Federal Trade Commission study. Five percent have errors serious enough to result in less favorable loan terms. In 2024, the CFPB received over 2.5 million credit and consumer reporting complaints — a 182% increase over the prior two-year average.

In early 2025, all three major credit bureaus faced federal enforcement actions for failing to investigate consumer disputes. Since then, federal oversight has been dramatically weakened — making private FCRA lawsuits the primary way consumers can hold the bureaus accountable.

The Fair Credit Reporting Act (FCRA), codified at 15 U.S.C. § 1681 et seq., gives consumers the right to sue credit bureaus, creditors, and background check companies that report inaccurate information and fail to correct it.

Attorney Bill Clanton represents Texas consumers in FCRA cases and has helped thousands of people fight credit report errors. Clanton Law Office handles cases across Texas, including San Antonio, Austin, Houston, Dallas, Fort Worth, and El Paso.

The Credit Bureaus Have a Track Record of Breaking the Law — And Federal Oversight Just Got Weaker

In early 2025, all three major credit bureaus faced federal enforcement actions for failing to properly investigate consumer disputes. Since then, the CFPB has been dramatically scaled back, and the bureaus are leaving more errors on reports than ever. That means private enforcement through FCRA lawsuits is now the primary way consumers can hold the bureaus accountable.

Equifax — $15 Million Penalty (January 2025)

In January 2025, the CFPB ordered Equifax to pay a $15 million penalty and implement dispute-handling reforms through 2030. The CFPB found Equifax failed to properly investigate consumer disputes, reinserted previously deleted errors onto credit reports, and failed to block information resulting from identity theft.

Experian — Federal Lawsuit (January 2025)

In January 2025, the CFPB sued Experian for conducting “sham investigations” of credit report errors, alleging the company failed to properly investigate consumer disputes and continued to include incorrect information on credit reports despite being notified of errors.

TransUnion — $23 Million Class Action Settlement (February 2025)

In February 2025, TransUnion agreed to a $23 million class action settlement in Norman v. Trans Union, LLC, affecting over 485,000 consumers who alleged the company failed to remove disputed hard inquiries from their credit files for nearly 10 years.

These are not isolated incidents — they reflect a systemic failure by the credit reporting industry to meet its legal obligations under the FCRA. And with federal oversight now dramatically weakened, the bureaus have even less incentive to fix errors on their own. That makes private FCRA lawsuits the most effective tool consumers have left to force corrections and recover damages. If you have disputed an error with Equifax, Experian, or TransUnion and they failed to investigate or correct it, you may have a federal FCRA claim.

What the FCRA Requires — And What Happens When Bureaus Violate It

The FCRA imposes specific obligations on credit reporting agencies (CRAs), data furnishers (creditors, debt collectors, and other companies that report information to the bureaus), and users of credit reports (employers, landlords, lenders). When any of these entities violates the law, consumers can sue.

Your Rights Under the FCRA

• Right to access your credit report: You are entitled to one free credit report per year from each bureau under 15 U.S.C. § 1681j. Request them at AnnualCreditReport.com.
• Right to access your file: If you are a victim of identity theft, under 15 U.S.C. § 1681g you have the right to a copy of your entire file, not just your current report, but everything in your file.
• Right to dispute errors: Under 15 U.S.C. § 1681i, credit bureaus must investigate disputes within 30 days, contact the data furnisher, and delete or correct information that cannot be verified.
• Right to have inaccurate information removed: If the bureau cannot verify disputed information within the investigation period, it must be promptly deleted from your report.
• Right to sue: Under 15 U.S.C. § 1681n (willful violations) and § 1681o (negligent violations), consumers can file federal lawsuits against credit bureaus, furnishers, and other violators.

FCRA Damages — What You Can Recover in a Lawsuit

Willful Violations (15 U.S.C. § 1681n)

Statutory damages between $100 and $1,000 per violation, plus punitive damages and attorney fees. Critically, the Eleventh Circuit confirmed in 2023 that consumers can recover FCRA statutory damages without proving actual financial harm — joining the Fourth, Sixth, Seventh, Eighth, Ninth, and Tenth Circuits in this interpretation. This means you can recover damages even if you cannot quantify a specific dollar loss from the error.

Negligent Violations (15 U.S.C. § 1681o)

Actual damages plus attorney fees. Actual damages include financial losses such as denied credit applications, higher interest rates, and emotional distress damages recognized by federal courts.

Attorney Fees — The Defendant Pays

Under both sections, the defendant pays your attorney fees if you prevail. You pay nothing out of pocket to hire an FCRA attorney. FCRA cases are handled on contingency.

Common FCRA Violations We Handle in Texas

Credit Report Errors That Won’t Go Away

You disputed an error. The bureau “investigated” and reported back that the information was “verified.” Nothing changed. Under the FCRA, a bureau’s investigation must be “reasonable” — rubber-stamping the furnisher’s response without independent review is not reasonable and may constitute a willful violation. The January 2025 enforcement actions against Equifax and Experian targeted exactly this behavior.

Identity Theft and Fraudulent Accounts

Under Section 605B of the FCRA (15 U.S.C. § 1681c-2), if you file an identity theft report, credit bureaus must block the fraudulent information within four business days. Failure to block — or reinsertion of blocked information after it has been removed — is a separate FCRA violation. The CFPB’s 2025 Equifax consent order specifically cited failure to block identity theft information as one of the violations.

Mixed Credit Files

When a credit bureau merges your file with another consumer’s — common among people with similar names, twins, or family members — every item from the other person’s file that appears on your report is a potential FCRA violation. Mixed files are one of the most damaging credit reporting errors because they can add delinquencies, collections, and even bankruptcies that belong to someone else.

Background Check Errors

Background check companies like HireRight, Sterling, Checkr, and ADP are consumer reporting agencies under the FCRA. When they report inaccurate criminal records, wrong employment history, or another person’s information, you can sue under the same FCRA provisions that apply to credit bureaus. The FTC required background report providers TruthFinder and Instant Checkmate to pay $5.8 million for FCRA violations — proving that background check companies face the same legal liability as traditional credit bureaus.

Reinsertion of Deleted Information

When a credit bureau deletes inaccurate information after your dispute and then puts it back on your report, this is called reinsertion. Under 15 U.S.C. § 1681i(a)(5)(B), the bureau must notify you within five business days of reinserting information and provide the name and contact information of the furnisher who supplied it. Reinsertion without proper notice is a separate violation — and the CFPB’s 2025 Equifax order specifically targeted this practice.

How to File an FCRA Dispute in Texas

Step 1: Order Your Free Credit Reports

Go to AnnualCreditReport.com and request reports from all three bureaus — Equifax, Experian, and TransUnion. Review each one carefully.

Step 2: Identify Every Error

Look for incorrect accounts, wrong balances, accounts that are not yours, duplicate entries, and outdated negative information. Most negative items must be removed after 7 years under 15 U.S.C. § 1681c. Bankruptcies can remain for 10 years.

Step 3: File Written Disputes

Send disputes by certified mail to each bureau reporting the error. Include copies (not originals) of supporting documentation. Certified mail creates a paper trail proving when the bureau received your dispute — this is critical for establishing the 30-day investigation clock.

Step 4: Wait 30 Days

The bureau must investigate and respond within 30 days. If they verify the information as accurate, request the method of verification — the bureau is required to provide this under 15 U.S.C. § 1681i(a)(7).

Step 5: Contact an FCRA Attorney

If the error persists after your dispute, you have documented proof that you notified the bureau, they investigated, and they failed to correct the error — the core elements of an FCRA lawsuit. At this point, an experienced FCRA attorney can evaluate your case and file suit at no cost to you.

Why Hire an FCRA Attorney in Texas?

Credit bureaus are massive corporations with dedicated legal departments. Equifax reported $5.6 billion in revenue in 2024. They count on consumers giving up after one or two failed disputes. An experienced FCRA attorney changes that equation.

Attorney Bill Clanton and the team at Clanton Law Office have represented thousands of Texas consumers in FCRA disputes against Equifax, Experian, TransUnion, and major background check companies. The firm handles cases across Texas, including San Antonio, Austin, Houston, Dallas, Fort Worth, and El Paso.

FCRA cases are taken on contingency — you pay nothing unless we recover money for you. Attorney fees are paid by the defendant, not the client.

Contact Clanton Law Office — Free FCRA Consultation

If you have errors on your credit report that the bureaus refuse to fix, call Clanton Law Office for a free case evaluation. We’ll review your dispute history, identify potential FCRA violations, and explain your legal options — at no cost and no obligation.

Frequently Asked Questions

What is the FCRA?

The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) is a federal law that regulates the collection, accuracy, and privacy of consumer credit information. It gives consumers the right to dispute errors and sue entities that violate its requirements.

Can I sue Equifax, Experian, or TransUnion for credit report errors?

Yes. Under the FCRA, you can sue credit bureaus that fail to investigate disputes, report inaccurate information, or reinsert previously deleted errors. In January 2025, the CFPB penalized Equifax $15 million and sued Experian for these exact failures.

How much can I recover in an FCRA lawsuit?

For willful violations, you can recover $100 to $1,000 per violation in statutory damages, plus punitive damages and attorney fees — without needing to prove actual financial harm. For negligent violations, you can recover actual damages plus attorney fees.

Do I have to pay an FCRA attorney upfront?

No. FCRA attorneys typically work on contingency. Under the FCRA, the defendant pays your attorney fees if you win. You pay nothing out of pocket.

What is a Section 605B identity theft block?

Under 15 U.S.C. § 1681c-2, if you file an identity theft report, credit bureaus must block the fraudulent information from your credit report within four business days. Failure to block or reinsertion of blocked information is a separate FCRA violation.