Identity theft and fraud should never ruin your credit. You may have legal options.

Consumers who discovered fraudulent, inaccurate or unauthorized accounts on their credit reports within the last two years may qualify to file an FCRA lawsuit.

What to know about the identity theft credit issues lawsuit

• Core Issue: Credit bureaus and creditors may fail to remove fraudulent or inaccurate accounts from consumer credit reports, even after those accounts are disputed. This may be violating federal law.

• Who it Affects: Consumers who experienced identity theft or fraudulent account activity within the last two years and discovered inaccurate information on their credit reports.

• Legal Status: Attorneys are investigating claims involving unresolved identity theft-related credit reporting errors and potential Fair Credit Reporting Act violations.

• Harm/Impact: Errors on your credit report may lead to lowered credit scores, loan denials, higher interest rates, housing denials, employment issues and other financial harm.

• Take Action: If you experienced identity theft or fraudulent activity that has negatively impacted your credit report, even after you reported or disputed the issue, you may be eligible to pursue an FCRA lawsuit.

What is the fraudulent credit issues lawsuit about?

Under the Fair Credit Reporting Act (FCRA), credit bureaus, such as Experian, Equifax and TransUnion, are required to investigate and remove inaccurate information that consumers dispute, but this does not always happen. As a result, consumers may suffer serious financial harm.

The investigation is examining whether:

• Credit bureaus and creditors failed to properly investigate or remove fraudulent or inaccurate account information after a consumer submits a dispute
• Consumers suffered financial harm because inaccurate information remained on their credit reports

Inaccurate or unresolved credit report information may lead to lowered credit scores, loan denials, housing issues, higher interest rates and other financial consequences.

Consumers who were unable to remove fraudulent accounts or identity theft-related inaccuracies from their credit reports may have legal rights under federal law.

Case updates

Legal status as of May 2026

• Attorneys are investigating claims involving identity theft-related credit report errors and unresolved fraudulent accounts.
• Credit bureaus Experian, Equifax and TransUnion have previously faced lawsuits over similar allegations.

This page was last reviewed and updated in May 2026 to reflect the latest case developments.

How identity theft can cause long-term harm to your credit

Fraudulent or inaccurate information on a credit report can create lasting financial problems if it is not corrected.

• Lower credit scores: Fraudulent accounts, collections or late payments may negatively affect a consumer’s credit score and financial reputation.
• Loan, housing or employment issues: Negative credit report information may affect a consumer’s ability to obtain loans, rent housing or secure employment opportunities.
• Higher financial costs: Consumers with damaged credit may face higher interest rates, added financial stress and difficulty obtaining affordable financing.

Consumers who were unable to remove fraudulent or inaccurate information from their credit reports after submitting disputes may have legal rights under the FCRA.

What is a credit report?

A credit report contains information about a person’s borrowing and payment history. Lenders, landlords, employers and other businesses may review credit reports when making decisions about loans, housing, employment and other financial opportunities.

The three major credit bureaus — Experian, Equifax and TransUnion — collect information from creditors and other organizations to create consumer credit reports.

Because credit reports rely on information reported by third parties, inaccurate or fraudulent information may sometimes appear on an individual’s report. These errors can affect a consumer’s credit score and overall financial profile.

How to identify possible fraud on your credit report

Consumers may not realize identity theft or fraudulent activity is affecting their credit until they review their credit reports. Warning signs may include:

• Accounts, addresses or personal information you do not recognize
• Credit inquiries from companies you did not contact
• Bills, statements or collection notices for unfamiliar accounts
• Unexpected drops in your credit score

Consumers who identify inaccurate or fraudulent information on their credit reports may wish to dispute the information with the credit bureaus and provide supporting documentation when available. Some consumers also choose to place a fraud alert or credit freeze on their credit reports to help prevent additional unauthorized activity.

What are your rights under the Fair Credit Reporting Act?

The Fair Credit Reporting Act is a federal law designed to help protect consumer credit information and ensure the accuracy of credit reporting.

Under the FCRA, credit bureaus must investigate information consumers dispute as inaccurate or fraudulent. If disputed information cannot be verified, it must be removed from the consumer’s credit report.

Creditors that report accounts tied to identity theft may also have obligations to investigate consumer disputes.

Fill out the form on this page to see if you qualify for a free case evaluation.