Yes, you can sue a company for running a credit check without your authorization. This is considered a violation of the Fair Credit Reporting Act (FCRA), which gives you certain rights regarding your credit report.
Here’s what you need to know about suing for an unauthorized credit inquiry:
1. What constitutes an unauthorized credit inquiry?
An unauthorized credit inquiry is any credit check that is conducted without your knowledge or consent. This includes inquiries made by:
- Companies that you have not applied for credit with
- Companies that you have not authorized to access your credit report
- Companies that have obtained your credit report under false pretenses
2 What are the damages you can recover?
If you can prove that a company has run an unauthorized credit inquiry on you, you may be able to recover damages, including:
- Actual damages, such as lost wages or out-of-pocket expenses
- Statutory damages, which are set by law and can range from $100 to $1,000 per violation
- Punitive damages, which are awarded in cases of intentional or reckless misconduct
3. How to sue for an unauthorized credit inquiry
If you believe that a company has run an unauthorized credit inquiry on you, you should first send a demand letter to the company. This letter should state that you believe the inquiry was unauthorized and that you are requesting damages. If the company does not respond to your demand letter, you can file a lawsuit in small claims court.
Here are some additional resources that you may find helpful:
- The Fair Credit Reporting Act (FCRA): https://www.consumer.ftc.gov/articles/fair-credit-reporting-act-summary
- The Consumer Financial Protection Bureau (CFPB): https://www.consumerfinance.gov/topics/credit-reporting/
- The Federal Trade Commission (FTC): https://www.consumer.ftc.gov/topics/credit-identity-theft
It is important to note that this is just a general overview of the law and that you should consult with an attorney to discuss your specific situation,
How to Sue Over an Unauthorized Credit Inquiry
If you think a company has run an unauthorized credit inquiry on you, you can sue them in small claims court Here are the steps involved:
1. Write and send a demand letter.
A demand letter is a formal request that lets the company know that they have violated your rights and that you are demanding compensation. You can find sample demand letters online or you can hire an attorney to write one for you.
2. Fill out the court forms.
Each court has different forms that you need to fill out to file a case. You can usually find these forms on the court’s website or at the courthouse.
3. File the forms with the court.
Once you have filled out the forms, you need to file them with the court. You will usually need to pay a filing fee.
4. Serve the defendant.
Once you have filed the forms, you need to serve the defendant with a copy of the complaint and summons. This means that you need to give them notice of the lawsuit. You can usually do this by hiring a process server.
5. Attend your hearing.
After the defendant has been served, they will have a chance to file an answer to your complaint. Then, you will have a hearing in front of a judge. At the hearing, you will need to present your evidence and argue your case.
If you win your case, the judge may order the defendant to pay you damages. The amount of damages you can recover will depend on the specific facts of your case.
Frequently Asked Questions
Who is the Registered Agent?
The Registered Agent is the person or company that is responsible for receiving legal documents on behalf of a business. You can usually find the name and address of the Registered Agent on the Secretary of State’s website.
Do I need a lawyer for Small Claims Court?
You are not required to have a lawyer to file a case in small claims court. However, it may be helpful to have an attorney represent you, especially if the case is complex.
How much does it cost to file a Small Claims Case?
The filing fee for a small claims case varies depending on the court. You can usually expect to pay between $30 and $400.
If you have any questions about filing a small claims case or accessing Dispute’s software, please reach out and contact us.
How to Sue (Own Your Own)
Its important to note that the process can vary from state to state. But typically, suing in small claims court involves the following:
- Compose and Send a Demand Letter: Many courts require you to send (and provide evidence of) a brief, formal request, no more than one or two pages, informing the recipient that noncompliance will result in legal action.
- Complete the Court Forms: Different forms are needed for each court in order to file a case there. Certain states, like California, have a single form that applies to the entire state, while other states, like Florida, have various forms based on the court’s location. Remember that these forms must be signed and may also need to be notarized.
- File the Forms with the Court: To file your completed forms, you must go to the courthouse in person or use their online portal. The court usually requests multiple copies of your filing in order to distribute it properly, and they always charge a filing fee. This fee ranges from $25 to $400, depending on the courthouse, and it may be reimbursed to you in the event that you prevail.
- Serve the Defendant: In most courtrooms, you will be required to “serve” the opposing party if your case is accepted. By doing this, you are informing the defendant of the upcoming hearing and its purpose.
- Attend your Hearing: Following all of the above, you should get ready for court and show up for the hearing on which you will make your case. Ideally, the judge will find sympathy for your situation and grant you a favorable ruling.
Even though filing in Small Claims Court is simpler, you might find that it requires a lot of time. Not to mention the time you might lose by having to go back and repeat a step or two in the event that you make a mistake.
On the other hand, Dispute allows you to quickly create a small claims document and demand letter from your computer or phone. We will help you obtain the appropriate paperwork from the courthouse of your choice and even submit it on your behalf.
Take Action in Small Claims
Small Claims Court is one of the easiest accessible legal forums. In most states, you can sue a company or individual for up to $10,000 without hiring an attorney. You can present your case to a judge in Small Claims Court, who has the authority to order the other party to pay you the money you are owed.
In addition, Small Claims Court has additional benefits for the layman seeking legal action:
- Compared to other more formal courts, Small Claims Court processes and procedures are typically easier to follow.
- Filing in Small Claims Court is less expensive than filing in other courts.
- Lawyers are not usually allowed in Small Claims Courts.
- The process is fast. A hearing will typically take place one to two months after your filing.