Credit Report Errors Can Cost South Carolina Consumers More Than They Realize
An inaccurate credit report can deny a mortgage, raise interest rates, or cost a job. South Carolina consumers have powerful tools under the Fair Credit Reporting Act to fix the problem.
Informational purposes only. This article discusses a recent news event and does not constitute legal advice. Every case is different — contact Traywick Law Offices for a free evaluation.
The Incident
A Charleston consumer applies for a mortgage to buy a home in Mount Pleasant. The lender pulls their credit report and finds a charged-off credit card they never opened, reported by a creditor they never heard of. The application is denied. Interest rates on an auto loan spike by two percentage points. A job offer is rescinded after a background check reveals a criminal record that belongs to someone else with a similar name. These are not hypothetical scenarios — they are the daily consequences of credit reporting errors.
What South Carolina Law Says
The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., requires credit reporting agencies and the businesses that furnish data to them to report only accurate, complete, and timely information. Consumers have the right to dispute any item they believe is inaccurate, incomplete, or unverifiable. The bureau must conduct a reasonable investigation and either correct or delete the item. If the bureau fails to investigate properly, or if a furnisher knowingly reports false information, both can be held liable.
Your Rights and Options
Consumers should obtain free credit reports from all three bureaus at AnnualCreditReport.com and review them carefully. Disputes should be submitted in writing, ideally by certified mail, with supporting documentation. The bureaus have 30 days to investigate. If the item is not corrected, the consumer may have grounds for a federal lawsuit seeking actual damages, statutory damages, punitive damages, and attorney's fees.
What I Look For When Evaluating These Cases
I review the consumer's credit reports line by line, identify every inaccurate or obsolete entry, and assess whether the bureau conducted a reasonable investigation. I look for mixed files, identity theft accounts, duplicate reporting, obsolete items past the seven-year reporting period, and accounts that were paid in full but still show a balance. I also evaluate the consumer's damages — denied loans, increased interest costs, emotional distress, and reputational harm.
How Opposing Parties Will Fight Back
Credit bureaus and furnishers routinely defend by claiming their investigation was reasonable, that the consumer's damages were not caused by the error, or that the consumer failed to dispute properly. They argue emotional distress is speculative and that any financial harm would have occurred regardless of the reporting error. Strong documentation and a clear causal chain between the error and the harm are essential.
Related Practice Areas at Traywick Law Offices
Traywick Law Offices helps South Carolina consumers resolve credit reporting errors under the FCRA. We also handle related debt collection abuse and consumer protection matters. If a credit error has cost you money or opportunity, contact us for a free consultation.
Has a Similar Incident Affected You?
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