Can I get my lawyer paid if a credit bureau messed up my report?

The situation

I live in Ohio and I am dealing with a massive headache regarding my credit history. Back in January 2024, I applied for a car loan at a local dealership, but I was denied because one of the major credit reporting agencies listed a late payment on my record from three years ago that I actually paid on time. I spent the entire month of February calling their customer service line and filing formal disputes through their online portal, providing my bank statements and canceled checks as proof that the account was settled. Despite my efforts, they refused to fix the error and even sent me a letter last week saying they wouldn't change anything. Because of this mistake, I had to take out a much higher interest rate loan last month, which is costing me an extra $120 every single month for the next four years. I am thinking about hiring a lawyer to sue them for the extra money I am losing and the stress this has caused. If I win the case, am I able to make the credit bureau pay for my attorney's fees and the court costs, or am I stuck paying my lawyer out of my own pocket?

Detailed Analysis

Under federal law, if a credit reporting agency is negligent in following the rules regarding your consumer information, they can be held liable for the harm they caused. Because you provided proof of your on-time payments and the bureau refused to fix the error, you may have a claim for negligence.

If you win your case, the law allows you to recover more than just your financial losses. Specifically, the law states that in the case of any successful action to enforce any liability under this section, "the costs of the action together with reasonable attorney’s fees as determined by the court"^[1]. This means that if a judge decides your lawyer's charges are fair, the credit bureau would be responsible for paying those fees and the costs of the lawsuit^[1].

In your specific situation, your 'actual damages'—the money you actually lost—would likely include the extra $120 you are paying every month for the next four years due to the higher interest rate^[1].

Whether you can recover these fees depends on whether your lawsuit is successful. If you lose the case, you will likely be responsible for your own legal bills. Additionally, if the bureau's refusal to fix your report was done in bad faith or to harass you, the court has even broader powers to award attorney's fees to the winning party^[1].

It is important to note that while the law covers negligence, if you were to sue under a different theory, such as 'willful noncompliance' (meaning they broke the law on purpose), the rules for damages and fees might change^[2].

Statutory Citations

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