The Richardsons sued Fleet Bank, the big three credit bureaus (Equifax, Experian and Trans Union) and Portfolio Recovery Associates, the collection agency. The Richardsons' lawsuit in federal district court seeks at least $25,000 in damages from Fleet, unspecified actual and punitive damages from Fleet and the other defendants, and attorney's fees and court costs. Attorneys and representatives for most of the defendants declined to comment on pending litigation. Megyn Kelly, attorney for Experian, called the Richardsons' accusations "absolutely false. This lawsuit has absolutely no merit and we expect it to be dismissed." New role as consumer advocate Such talk doesn't deter Denise Richardson, who has transformed herself into a consumer advocate who fields hundreds of emails from victims of inaccurate credit reporting and has lobbied members of Congress. "Someone said I've turned into a crusader, but it was born out of frustration," she says. What really frustrates her, she says, is that the bank, the credit bureaus and the collection agency have not explained how inaccurate information continued to be disseminated. "I was told that it was unfortunate, unique, unintended," she says. "They didn't use the word mistake. Error -- that's the word they used. They minimized it. And it's not unique. How can it be unique when I'm sitting here with hundreds of letters from consumers?" How credit bureaus investigate When a creditor reports a problem to a bureau, the consumer challenges it and the bureau asks for a clarification, two things can happen, the credit bureaus say. First, the creditor can correct the information. Second, it can come back and say the information has been confirmed. "The next recourse to the consumer is to deal with the credit grantor to arrive at a solution," says Anissa Yates, Experian's manager of corporate communications, speaking generally and not about the Richardson case. The Richardsons say they tried to get Fleet Bank to set the record straight permanently, but had no luck. The credit bureaus didn't help. "With these big corporations, you write to them and I can't tell you how many times I got reinvestigation forms back, saying they are reinvestigating my dispute, and the bank verified it as accurate," Denise Richardson says. Allan Cook, an attorney for the Richardsons, says, "The source of the problem has been Fleet. They should not have been reporting the information." An attorney for Fleet declined to comment. A spokesman for Fleet did not return phone calls. Blame the computer? Cook thinks Fleet will say that the inaccurate reporting was an oversight, a software glitch, "and from our perspective, it's irrelevant. It's not our problem. They have a duty not to report inaccurate information. I can't believe they could not find this information somewhere in their database system and not delete it permanently." He says a credit bureau's typical investigation "consists of calling the creditor and saying, 'Is this a legitimate debt?' and they say, 'Yeah, it says it is here.' " Once the credit bureau has done this, it replies to the consumer that it has verified the information as accurate." Generally, that's the way it's done, acknowledge representatives of the big three credit bureaus. That's why they tell you to deal directly with creditors when you're trying to resolve inaccuracies. While you're trying to clear up inaccurate information provided by a creditor, you can tell the credit bureau to provide a brief explanation of your side of the story and include it in the credit file. Explanations are limited to 100 words. Equifax Inc. spokesman Dave Mooney says the credit reporting giant has a quality-control program that compares data provided by creditors with the previous month's data. If they're out of whack -- say, for example, June's default rate was 15 percent and July's was 23 percent -- "bingo, that's a red flag," Mooney says, and the creditor will be asked to check the information. The credit bureaus won't venture forth to check public documents such as court judgments and county property records, but they will accept copies of supporting documentation from consumers. In rare cases they might even repair a consumer's credit record based on such documents, "but a month later we'll get the same old information from the credit grantor again," Mooney says. A "shadow world" ripe for a fall It's that kind of attitude toward the consumer that makes Lewis call the credit-reporting industry "a shadow world that is almost beyond the reach of the law and is certainly above and beyond the reach of the consumer." And Lewis, who dreamed up the legal strategy that brought the tobacco companies to the negotiating table, has a plan to set up the credit industry for a fall. If someone assumes your identity to obtain credit fraudulently, send certified letters to the credit bureaus demanding a personal identification number to be used whenever someone applies for credit in your name, Lewis advises. If the applicant doesn't know your PIN, the applicant doesn't get credit. The credit bureaus won't give you a PIN. All three will add a fraud alert to the credit report "so when someone applies for credit, the credit grantor will see the statement and they'll know to be careful about granting credit," says Christine Hill, spokeswoman for Trans Union. A PIN, says Yates of Experian, would be unnecessary, "just one more piece of identifying information," along with the name, address, Social Security number and maybe place of employment. Lewis bets that there's a jury out there that would not buy that argument. He thinks that if someone asks for a PIN from the credit bureaus, then continues to get bad credit reports because of an impostor's fraud, a jury will throw the book at the credit bureaus. The credit bureaus don't want to change their methods because they don't want to upset their clients who extend credit, he says. "All the creditors around the country seem to operate their credit application process in the same slipshod way," he says. "It's not by accident. They don't want to do anything to impede the customer's impulsiveness."