Q: How can I deal with wrongful information on my credit report?
A: Dear Angry:
The good news is that you are regularly checking your credit report. Keeping your credit score healthy so you can access capital when you need it is extremely valuable for your business.
It’s easy to become frustrated when someone reports incorrect information to a credit reporting agency. The information in your credit report can directly impact your reputation, creditworthiness, and even business opportunities. However, it is important to keep your cool and work through a process to best protect your interests.
If you do not have the time to fight incorrect items on your credit report yourself, considering hiring someone to do it for you. We like the team at the Wealth Generation Collective. You can reach them here: http://www.WealthGenerationCollective.com.
You may also want to check your business credit report as well.
Your business credit report contains not only your company’s credit score but also information about unpaid debts and security interest filings. Banks and other lending institutions consider your business credit report when making decisions about whether to extend credit or loan money to your company.
Many people are familiar with the Fair Credit Reporting Act. This is a federal law that is designed to protect consumer credit. When businesses are injured by unfair credit practices, however, they must generally pursue a claim under state contract or tort law.
First, make sure that the company or person who has provided the incorrect information is on notice that the information is wrong and that the information is damaging your business. This is usually best accomplished by trusted legal counsel, who can put the party on written notice by letter.
If the party refuses to correct the error so that it is removed from your business credit report, you and your lawyer will need to decide whether a contract claim is available to you (assuming you had a contract with the party) or whether you will need to proceed under state tort law. One possible legal theory is fraud. Also, most states allow legal claims for tortious interference with business expectancy.
When you are faced with an incorrect business credit report, a Creative Business Lawyer® can help. We understand the issues faced by today’s companies, and we can help your business get back on track with competent, compassionate legal support. Contact a Creative Business Lawyer® today and schedule a time to discuss your business needs.