Is there any recourse for a destruction of financial reputation due to a bank report error?

I discovered through a declined credit card application that when I paid off my equity loan 4 months ago, they reported it to the credit bureau as a bankruptcy. They are presently working on it. In the mean time my financial reputation is destroyed. Is there any legal recourse for this type of bank error? It seems like it might fall under defamation of character?

Asked on June 29, 2012 under Business Law, Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If you can demonstrate actual compensable damage in terms of dollars and cents due to your lending instutition's error in reporting your equity loan in full but it was reported to your credit bureau as a bankruptcy, then you would have a factual and legal basis to file a lawsuit.

Ordinarily proving damage to one's financial reputation and the effects of such is a difficult thing to prove needing expert testimony in such an area. I suggest that you consult further with an attorney that practices in the area of consumer law about your matter for a more detailed legal opinion with respect to the facts of your matter.

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