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CalAttorney2, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 10215
Experience:  I am a civil litigation attorney representing individuals and businesses.
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During the term of an auto loan (law 553 contract in CA): If

Customer Question

During the term of an auto loan (law 553 contract in CA):
If an auto lender applies fees to an account in error, then reverses the fees from the account. but then reports the statement payment including the fees and shows the contract payment being made (less than required amount) to the credit bureau..
and the above negatively impacts the borrowers credit score..
Is the lender responsible for correcting that with the credit bureau(s)?
and or is the borrower due damages?
Submitted: 2 months ago.
Category: Consumer Protection Law
Expert:  CalAttorney2 replied 2 months ago.

Dear Customer,

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Yes, the lender is responsible for correcting the error with the credit reporting bureaus

If they fail to do so you can file a dispute with the individual bureaus - the process is detailed (along with links and information on how to do so) here:

There is no claim for money damages based on this (courts have consistently held that damage to ones credit based on a credit report error are "speculative" - there are too many factors that go into a credit score, and each bureau keeps their scoring information highly secret (they are proprietary formulas), so it is impossible for the courts to actually identify a compensable damage - a drop in your credit score number alone is not compensable).

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