Losing a job is devastating. But losing a job over something you didn’t do, like credit report errors, can feel like a punch to the gut. If you’re in Denver and you’ve recently been denied employment due to false or inaccurate information on your credit report, you might wonder: Can you sue over credit report errors that cost you your job in Denver?
If this has happened to you, know that both federal and state consumer protection laws may support your right to take action. This article walks you through your rights, the laws that protect you, and the steps you can take to hold reporting agencies accountable.
How Credit Reports Impact Employment in Denver
Most people associate credit reports with loans or credit cards, but many employers now use them in background checks. When a credit reporting agency sends a consumer’s credit report to a prospective employer, the report may influence hiring decisions. If it contains inaccurate information like old debt, accounts from someone with the same or similar name, or identity theft-related issues, it can cost you even a job you were otherwise qualified for.
Colorado law allows employers to use credit information only under specific circumstances, such as for managerial positions or roles involving financial responsibilities (C.R.S. § 8-2-126). However, they must first obtain written consent from the applicant. If they take adverse action (like denying you the job) based on your credit file, they must inform you under the Fair Credit Reporting Act (FCRA).
What Is the Fair Credit Reporting Act (FCRA)?
The Fair Credit Reporting Act, a federal law enacted in 1970, is a cornerstone of consumer protection. It governs how consumer reporting agencies collect, access, and share your credit information. FCRA ensures accurate reporting and gives you the right to dispute inaccuracies in your credit file.
Your Rights Under the Fair Credit Reporting Act (FCRA)
Key rights under FCRA include:
- Access to a free credit report every 12 months from each of the three main credit reporting agencies.
- The right to know what is in your credit file.
- The right to dispute incorrect information.
- Hold agencies and furnishers accountable for inaccurate or negligent reporting.
- Seek financial compensation through federal court.
If an employer relied on inaccurate credit reports and failed to notify you, it may be violating federal law.
Common Types of Credit Report Errors That Lead to Job Loss
Some errors are more common than you might think. A reporting agency may:
- Confuse your data with someone of the same or a similar name (known as mixed files).
- Report credit accounts that were closed years ago.
- List you as the primary on an account where you’re only an authorized user.
- Misattribute debts tied to a family member or previous roommate.
- Include accounts opened due to fraudulent activity or identity theft.
These report errors often stem from outdated or incomplete report information, such as a mismatched Social Security number or an outdated address. Even a small piece of incorrect information can spiral into financial harm and emotional stress when it costs you employment.
The Legal Consequences for Credit Reporting Agencies
When credit bureaus and credit agencies fail to correct errors after you’ve filed a proper credit report dispute, they may be held legally accountable.
Under the FCRA, you have the right to:
- Submit supporting documentation when disputing errors.
- Dispute any inaccurate or incomplete information in your report.
- Receive your dispute resolution within 30 days (extendable to 45 days with added documentation).
If a consumer reporting agency or credit card company neglects these duties or fails to correct errors promptly, the consumer law allows you to sue for:
- Actual damages (lost wages, emotional suffering, reputational harm).
- Statutory damages up to $100-$1,000 per violation.
- Punitive damages for willful violations.
- Legal fees and court costs (if you prevail).
What Steps Should You Take If Your Credit Report Costs You a Job?
If you’re facing a denied job offer due to credit-related adverse action, take these steps:
- Request a free copy of your consumer’s credit report from the agency used by the employer.
- Review the credit file for any inaccurate information or accounts you don’t recognize.
- File a credit report dispute with all relevant credit reporting agencies.
- Contact debt collectors and companies involved in the incorrect information for clarification.
- Submit supporting documents and explain any entries caused by identity theft or mixed files.
Under both FCRA and Colorado consumer protection laws, you have the right to challenge the report and demand accurate reporting. Keep all communication in writing and record toll-free numbers used during disputes.
Suing for Financial and Emotional Damages in Denver
If your rights under the Fair Credit Reporting Act (FCRA) were violated and bad credit cost you employment, you may be eligible to sue. Claims can be filed in federal court or Colorado state court, depending on the nature of the case. Seeking legal advice from an employment lawyer is essential.
Legal remedies may include:
- Compensation for emotional suffering and lost opportunities.
- Reimbursement for job search expenses.
- Rebuilding your credit score through verified credit repair.
An experienced attorney with a proven track record can help you assess the damages, gather relevant information, and represent you if necessary. While legal action may seem intimidating, it can often be the most effective way to hold reporting agencies accountable.
Why Consumer Rights Matter More Than Ever
In a time when background checks determine access to housing, credit, and employment, ensuring your credit report is accurate isn’t just about credit accounts; it’s about your future. You have the legal backing to fix errors, dispute inaccuracies, and demand fair treatment from consumer reporting agencies.
The federal law supporting this isn’t just paperwork. It exists to protect your dignity and financial livelihood. If a reporting agency failed in its duty and cost you a job, you have every right to fight back.
You Don’t Have to Face This Alone
If you’ve faced inaccurate reporting, bad faith investigations, or denial of employment based on a Denver credit dispute, you have rights and a path forward.
At Bourassa Law Group, our law firm stands ready to hold the negligent credit bureaus accountable. We understand how deeply a false record can affect your life, especially when it’s rooted in incorrect data, mistaken identity, or overlooked facts. If you’re dealing with inaccurate credit reports, identity theft, or a case of mistaken reporting, we can help you compile other evidence and pursue your claim with confidence.
Contact us for a free consultation. We’ll guide you through the process of correcting records, filing disputes, and, if necessary, litigating with clarity and compassion. You deserve accurate reporting, a clean credit file, and the opportunity to rebuild without unjust barriers.
1-800-870-8910