How has COVID-19 impacted credit reporting errors?

  • Blog
  • How has COVID-19 impacted credit reporting errors?
Contact Us
1
2
3
22 Apr, 2024
6 min
915
dispute credit report due to covid 19

Amongst the many issues created by the pandemic, credit reporting mistakes are multiplying in the wake of new legislation and policy.

COVID-19 has lead to a significant increase in credit reporting errors. Discover how these were causes and how you can fix them if your credit report is showing mistakes.

When the COVID-19 pandemic emerged in early 2020, it presented a relentless global threat of economic shutdown and mass unemployment. However, it presented even worse challenges in the U.S.

This pandemic has caused an exponential increase in cases of credit reporting errors.

According to the www.uspirg.org - United States Public Interest Research Group, complaints submitted to the Consumer Financial Protection Bureau in 2020 regarding credit reporting errors skyrocketed by 86% compared to the previous year.

Historically, credit report errors have proven to be a dilemma for consumers. A 2013 study by the Federal Trade Commission found that one out of every four consumers had at least one error on their credit report.

Credit reporting errors are understandably worse in the COVID-19 context because they present additional financial challenges to people already facing a teetering economy.

How did the pandemic increase credit report errors?

The pandemic prompted a significant increase in cases of credit reporting errors. This is largely attributed to the passage of the CARES Act and a relaxation of policy by the Consumer Financial Protection Bureau.

The CARES Act

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by Congress in March 2020 to sustain Americans as they were hit hard by the pandemic.

The legislation required companies that provide federally backed mortgages and student loans to offer deferred payments, which were to be reported as current. This was structured in order to provide consumers some relief.

As a matter of fact, some other businesses, including credit card companies, offered deferred payments on their own accord.

Class Action Lawsuit Against Experian: What You Need to Know

If you've been a victim of identity theft or other credit-related issues, you may be eligible to join a class action lawsuit against Experian. These lawsuits can provide compensation for damages caused by Experian's alleged negligence or mistakes. To join a class action lawsuit, you'll typically need to provide evidence of harm, such as credit report errors or financial losses. It's important to consult with a legal professional to determine if a class action lawsuit is the best option for you. Contact our law firm today to learn more about your legal options and how we can help.

Where did it all go wrong?

Sadly, various companies erroneously reported the deferred payments as late instead of current. Additionally, loans that were granted forbearance were also incorrectly reported as late. Many individuals qualified for extensions on delayed payments of loans thanks to the CARES Act. However, many of the companies offering deferrals failed to comply with the new law.

This resulted in countless credit reporting errors and plummeting credit scores.

A relaxation of policy

Another reason for the outrageous numbers of credit reporting errors is the growing backlog of complaints. Credit reporting bureaus’ queries and objections have piled up because they are not obligated to respond as quickly as during the pandemic.

Normally, the law prescribed credit reporting bureaus a 30-day window to sort out disputes. However, with the rise of COVID-19 cases, the Consumer Financial Protection Bureau relaxed this rule.

While the move was made with positive intentions, an alternative timeframe was not instated. Instead, the Consumer Financial Protection Bureau only posited that a company had to make a good faith effort. This has led to endless complaints about credit reporting bureaus’ sluggish response to disputes.

So, COVID-19 impacted credit reporting errors by making them grow astronomically. Have you been a victim of these errors? Helping clients sort out credit reporting errors is our cup of tea!

Contact us to find out how our team of experts can help you.

imageDaniel Cohen is the Founding Partner of Consumer Attorneys
About the lawyer
Daniel Cohen
See more post

Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more

Contact Us
INVESTIGATIVE ENGAGEMENT AGREEMENT

You, (“Client,” “you”), and Consumer Attorneys PLLC (“CA” or “we”), located at 72-47 139th street Flushing, NY 11367 (“CA”) , hereby enter into this limited scope retainer agreement whereby you agree to grant CA the exclusive authority to investigate your potential consumer law claim(s), including but not limited to potential violations of the Fair Credit Reporting Act (“FCRA”), Fair Debt Collection Practices Act (“FDCPA”), Equal Credit Opportunity Act (“ECOA”), Electronic Funds Transfer Act “EFTA”), Fair Credit Billing Act (“FCPA”), and/or the Telephone Consumer Protection Act (TCPA”) (collectively referenced as “consumer protection statutes”). 1Please read carefully before signing:

Authorization

You authorize CA to investigate your potential consumer law claim(s) under state and federal consumer protection statutes. You authorize CA to contact third parties on your behalf for the limited purpose of investigating your potential consumer law claims. “Third parties” include but are not limited to consumer reporting agencies, creditors, lenders, debt collectors, rental agencies, employers, courts, and law enforcement agencies.

CA’s Exclusive Investigative Period

CA agrees to investigate your potential consumer law claims in good faith. By signing this agreement, you agree to give CA the exclusive right to investigate your potential consumer law claim(s) for the next 180 days (“Exclusive Investigative Period”). For the duration of the Exclusive Investigative Period, you agree that you will not communicate with any other law firm or legal representative about your potential consumer law claim(s). You agree to forgo any previously scheduled consultation or case review until CA’s Exclusive Investigative Period concludes.

Termination of Exclusive Investigation Period

CA agrees that the Exclusive Investigative Period may not extend beyond 180 days without your prior written consent.

At any time between the date of this agreement and the expiration of CA’s Exclusive Investigative Period, CA may inform you of the outcome of its investigation. If CA’s investigation reveals that you have an actional consumer law claim, CA may ask you to sign a formal retainer agreement. If CA’s investigation does not reveal an actionable consumer law claim, you will receive an e-mail that states CA will not represent you in any further pursuit of your potential claim(s).

The relationship between you and CA automatically terminates at 5pm on the 180th day of the Exclusive Investigative Period or your receipt of CA’s written notice to decline representation, whichever comes sooner. At the conclusion of the Exclusive Investigative Period or upon receipt of CA’s written declination of representation, you are permitted to seek alternative legal counsel without penalty.

Nothing in this agreement should be construed as a promise or guarantee that CA will represent you in a consumer lawsuit at any point in time. CA reserves the right to decline to represent you for any reason permitted by relevant laws and ethical rules.

Your Involvement and Promises to us

You agree to meaningfully participate and cooperate in CA’s investigation of your potential consumer law claim(s). You agree to immediately inform CA if your mailing address, e-mail address, or phone number changes at any point during the Exclusive Investigative Period.
You agree to provide all relevant information, communications, documents, materials, and all other similar instruments to CA and its representatives during the Exclusive Investigative Period. You understand that your failure to provide all relevant information, communications, documents, and materials to CA during the Exclusive Investigative Period may hinder, delay or otherwise frustrate CA’s investigation of your potential consumer law claim(s).

You agree, under penalty of perjury, to provide complete, accurate, and truthful information to CA. All documents and communications, oral or written, past or future, provided to CA during the Exclusive Investigative Period and anytime thereafter are presumed by CA to be true, complete, and accurate.

Fees and Costs Incurred During Exclusive Investigative Period

CA agrees that you will not incur any out-of-pocket fees or costs during CA’s Exclusive Investigative Period. However, if CA agrees to represent you in a consumer lawsuit, CA may recover the fees and costs incurred during the Exclusive Investigative Period from the Defendant pursuant to a future settlement or judgment.

You agree that CA has a right to place a lien on any future monetary recovery obtained by client related to the claims identified during CA’s Exclusive Investigative Period or as a result of CA’s investigative efforts. If you refuse to cooperate with CA in the formal pursuit of the consumer law claim(s) it identifies during or after the Exclusive Investigative Period, you agree that CA has the right to recover the fees and costs it incurred while investigating your potential consumer law claim(s).

Authorization to Use Your Electronic Signature

CA will send you any and all documents that require your signature. You authorize CA to affix your electronic signature to requests, disclosures, or other forms that CA deems reasonably necessary to the investigation of your potential consumer law claim(s) upon receipt of your approval or after the 7th day after the document was sent to you, whichever comes first. Your electronic signature will be used on any and all other subsequent documents that will need signature, affirmation, acknowledgment, or any other forms of authentication in reference to this matter under the above referenced procedure.

1You also agree to give CA the exclusive authority to investigate potential violations of state-specific consumer protection statutes.

All Rights Reserved. Without Prejudice. CONSUMER ATTORNEYS

FORM # INV2024CA119

I have read and agree to the Privacy Policy, Investigative Retainer
Supported file formats:
Free Case Review
Zero Costs and Fees to You.
You pay nothing. The law makes them pay.
Get started
Contact Us
Head Office NY
68-29 Main Street, Flushing NY 11367
Our social media
Our rating services
TrustpilotGoogle Business