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CalAttorney2
CalAttorney2, Attorney
Category: Legal
Satisfied Customers: 10237
Experience:  Civil litigation attorney for individuals and businesses.
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One of the leading merchants reported wrong information to

Customer Question

One of the leading merchants reported wrong information to credit bureau which hampered my credit score and I ended up paying higher interest in a purchase I recently made. I had discussed the mis reporting to the merchant several times and every time I was assured that it had been corrected but it never did. I reached out to the company and explained what had happened. They denied to give me any sort of compensation and told me that I can seek legal support if I want.
Submitted: 1 year ago.
Category: Legal
Expert:  CalAttorney2 replied 1 year ago.
Unfortunately, credit rating claims are incredibly hard (read "impossible") to win as the causation factor is almost always deemed "speculative" - a consumer's interest rate on a purchase is based on so many variables that a defendant can generally avoid liability by pointing to any mix of income/assets/liabilities/other credit reporting issues, that they will always avoid liability for the interest charged on a specific purchase.You said that you have reached out to this merchant directly to try to get them to correct this error on your credit report - have you also contacted the 3 credit reporting bureaus (or at least the ones that are reporting the error) - they can also review the error, and correct it, if not, you can file a rebuttal that will be reported simultaneously with the report (always access these reporting bureaus through the FTC (government) website to ensure that you are not charged, and not signed up for a subscription).https://www.consumer.ftc.gov/articles/0151-disputing-errors-credit-reports
Customer: replied 1 year ago.
But it is indeed cheating from the merchant. I understand it is affected by various factors but one of the leading factors is indeed credit score and while making the purchase the loan agency representative repeteadly pointed out that my credit score was poor and risky for them to go at a lower rate.
Expert:  CalAttorney2 replied 1 year ago.
I do agree, and I don't agree with the way this particular issue of law tends to be interpreted. But I also don't think it would be fair of me to set you up to go sue this merchant for a low value suit that you are not likely to win (you would spend a lot of time and money going after them, and your likelihood of recovery is very low).
Customer: replied 1 year ago.
you may not be able to sue on credit score basis but it is entirely their fault and poor consumer support that led to this issue. You might be able to pursue a lawsuit for their bad management leading to customer's loss.
Customer: replied 1 year ago.
I am not really convinced with your answer. There is no terms conditions in any forms that they make you sign while applying for the credit card that protects them from mis reporting. It is basically a repeated harassment to pay something that was already settled.
Expert:  CalAttorney2 replied 1 year ago.
If you want to file suit, you are more than welcome to. I would recommend doing so in small claims court as general civil is going to be very much more expensive and complicated.You can find most small claims court information in your local law library or court self help desk (if you provide me with your state, I can often provide you with at least a packet or directory for local information on the process to get you started).
Customer: replied 1 year ago.
I reside in KS. Can you give me examples where similar cases have been successful/unsuccessful.
Customer: replied 1 year ago.
and also the statutes which should protect customer from such misreporting that leads to financial loss. What will be the closest category for me to look into in more detail.
Expert:  CalAttorney2 replied 1 year ago.
Here is a link to the Kansas Small Claims Handbook: http://www.kscourts.org/rules-procedures-forms/small-claims-information/You can file your small claims case for the following causes of action based on a false negative credit reporting: breach of contract, fraud, negligence, and defamation against the merchant.Unfortunately, this is not a research service (case law, and statutory research takes a lot of time - several hours) but you can find cases on this free search engine: https://scholar.google.com/scholar_courts or by visiting your local law library.However, for a small claims case, you really don't need to do a lot of research, you simply file your complaint by pleading the causes of action and the facts supporting the same.

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