Hi all. I'm helping a friend rebuild from a Chapter 7 BK that was discharged two years ago. On his report, he noticed two accounts from Fifth Third Bank that had never been never used and had $0 balances on the date of filing reporting as "Included in Bankruptcy" with derogatory markers. He submitted disputes online with the credit bureaus but they simply updated it to say "Bankruptcy Discharged." This doesn't seem right -- cards with no balances are not part of a bankruptcy. His other open cards with $0 balances on the day of filing report as "Closed by Credit Grantor." Does he have any recourse for this flagrantly inaccurate reporting?
Recourse is to either contact the creditor and attempt to get them to informally correct the inaccurate reporting that they were included in BK, or to file a formal dispute that mandates investigation and review.
Furnishers cannot be sued by a consumer for reporting of inaccurate information, even if flagrant.
FCRA 623(c) prevents civil action by consumers based on inaccurate reporting.
The right to file civil action, which can include seeking damages, only accrues after the consumer has first filed a formal dispute with the CRA, providing the opportunity to correct.
If the furnisher than certifies the accuracy, the consumer can then file a civil action, but on the basis of lack of a reasonable investigation of the dispute filed with the CRA, and not directly for having reported inaccurate information per se.
Having filed a dispute with the resulting investigation then resulting in continued inaccurate reporting, you can choose to pursue by now filing a civil action contesting the reasonableness of that investigation.
The time and cost invested in a civil action might be extreme, and you may wish to contact the creditor or file a renewed dispute with new documentation rather than file a civil complaint.