I met with NELA outside counsel Friday to discuss my lawsuit. It turns out, that even though I disputed false information numerous times to them, they routinely ignore direct disputes. Apparently, they face no liability under the FCRA unless the dispute is directed to the Credit bureau who in turn contacts the creditor. Of course, it is almost impossible to prove the credit bureau ever contacted the creditor. That is what NELA claims since I contacted them directly and through the credit bureaus. This is so dirty. It doesn't matter that the HEA requires them report accurately. There is no liability under the HEA either. I'll still kick A**, but its really a dirty crock of stuff.
RE: Creditor responsibilities Steve- you are correct that the FCRA only creates statutory liability for the CRAs, not the original creditor. I advise you to ask the attorney about the possibility of a libel lawsuit against the original creditor. Libel is the publication of false, defamatory information about someone in a written (or computer) medium (as opposed to slander, which is verbal). If the creditor provided false information to the CRA, they are liable for damages if you bring an action for libel.
RE: Creditor responsibilities Actually, that is not quite what I said. There is liability under the FCRA for creditors too, but only if the dispute is routed through the CRA's. Of course, it is tough to prove the CRA ever contacted the creditor. Under libel, are punitive or treble damages available too...or just actual damages? What sort of restraints exist on such a claim? Thanks in advance.
