Can you sue debtors for reporting erroneous and harmful information to credit reporting agencies?

UPDATED: Jan 5, 2011

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Can you sue debtors for reporting erroneous and harmful information to credit reporting agencies?

In the process of refinancing, GMAC was paid off by a broker agency. Due to the timing of the transaction and some other factors, the broker agency made one additional mortgage payment to GMAC on the 30th day of the month in order to prevent a late payment from impacting my excellent credit score (750-775 – never a late payment). However, GMAC erroneously reported to the 3 credit agencies as a late payment. They have since recognized the error and sent me a letter indicating their intent to correct the report. Yet, I have already been notified of the late payment on all 3 reports.

Asked on January 5, 2011 under General Practice, Virginia


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

GMAC is not a debtor here but a bank and a creditor in a default situation.  You mean can you as a debtor sue them for false reporting? Probably not.  If you could what would be the damage that you would be suing for?  Damage to your credit report?  Did that alleged damage cause you any financial loss?  How would you be able to prove that?  As long as GMAC intends on making good on their statement that they will be contacting the credit reporting agencies and requesting that they correct the report then that is what you can hope for.  But check your credit report after they tell you that it has been fixed.  You can also file a dispute with each of the credit reporting agencies and then GMAC would have 30 days to respond or it would be taken off.  Good luck to you.

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