Consumer Lawsuits Against Credit Bureaus Are Multiplying

Consumers are showing their dissatisfaction with the effects that the top three credit bureaus are having on their credit worthiness by engaging in that age-old American past-time: suing.

Scores of lawsuits challenging credit-report errors and low credit scores are pending in several states, including California, Louisiana, Michigan, Mississippi, New Mexico, South Carolina and Virginia.

The majority of the consumer lawsuits allege that the Big Three – Equifax, TransUnion, and Experian – engage in practices that artificially lower credit scores; additionally, consumers allege that the bureaus ignore pleas to remove inaccurate information.

James Fishman of New York's Fishman & Neil, told The National Law Journal that he settles about 99 percent of his cases, and believes litigation works. “It is becoming more and more prevalent that people are fighting back and suing credit bureaus and information furnishers who can't get it right without filing a lawsuit."

Equifax sees it differently: “At all pertinent times, Equifax has acted in good faith and without intent to injure plaintiff," Equifax stated in court documents. "[A]ny alleged damages sustained by plaintiff were, at least in part, caused by the actions of plaintiff and resulted from plaintiff's own negligence, which equaled or exceeded any alleged negligence or wrongdoing by Equifax." TransUnion and Experian have continued to decline comment on consumer cases.