Limits on When and Where You Can Sue Under the Fair Credit Reporting Act
The section of the Fair Credit Reporting Act (FCRA) referred to as 15 USC § 1681p, essentially sets the rules for two main things: Firstly, it defines how long you have to bring a lawsuit if you believe your rights under the FCRA have been violated, which is known as the statute of limitations. Secondly, it outlines where (in which court) you can file this lawsuit.
The statute of limitations is like a countdown timer that starts from the date you discovered (or should have discovered) the issue with your credit report that you believe is in violation of the FCRA. Generally, you have two years from the date of discovery to file your case. However, there's also an absolute cutoff point of five years after the violation occurred, regardless of when you discovered it. This means if you found out about the problem four years after it happened, you wouldn't have two full years to sue because of the five-year upper limit.
For example, let's say you found an error on your credit report that you believe resulted from the credit reporting agency's failure to follow proper procedures. If you discover this error on January 1, 2025, the clock starts ticking, and you typically have until January 1, 2027, to file a lawsuit. But if the error originally occurred on January 1, 2020, you'd only have until January 1, 2025, to take legal action because of the five-year absolute limit.
As for where you can sue, the law allows you to file your lawsuit in a federal district court or a state court. The choice might depend on the specifics of your case or your legal strategy. It's worth noting that choosing the correct jurisdiction can be as important as filing within the time limits, and making the wrong choice could affect the outcome of your case.
It’s usually recommended to seek legal advice to understand the best court to file your claim in, as well as to ensure you comply with the statute of limitations. The FCRA laws and procedures can be complex, and a qualified lawyer can help you navigate them effectively.
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