WHAT ARE THE DAMAGE RANGES FOR A FCRA VIOLATION?
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WHAT ARE THE DAMAGE RANGES FOR A FCRA VIOLATION?
I think I have an FCRA violation. I heard it was only $1000 per violation we could recover. Also, I heard there are punitive and legal fees you can ask for, but that is about it. I am about to sign a retainer agreement with this law firm, but I am afraid that $1,000 seems so low and a waste of my time. Can anyone tell me if the damages amount I was told is true and if there is any way to get more money for an FCRA violation.
Asked on June 26, 2011 under Bankruptcy Law, New Jersey
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
You are correct on what you heard about a Fair Credit Reporting Act (FCRA) violation. Such a violation is a violation of federal, not state law under section 616 of the act.
For a FCRA violation, the minimum amount to be awarded as special damages is $100 and the maximum amount is $1,000. The plaintiff for proving such a violation can also obtain punitive damages and reasonable attorneys fees.
One reason for the "cap" on the $1,000 violation is that proving actual damages to one's credit is typically hard to prove and expensive due to the need of having to hire expert witnesses. A statutory violation based upon the FCRA allows compensation to the plaintiff based upon proving the statute's violation.
You might discuss things with the lawyer you might hire about putting something in writing as to the net amount the law firm would end up giving you in the lawsuit if there is a settlement or a collection upon any judgment for the FCRA violation.
Good luck.
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