The Virginia Defamation Law Blog
Credit reporting agencies make mistakes. Even when they’re not at fault, the credit reports they prepare often contain inaccurate information about consumers. When this happens, can the consumer sue the credit reporting agency for defamation? Well, maybe. Virginia defamation laws usually apply where false statements have been made to others that cause harm to one’s reputation, but these are state laws which may be preempted by the federal Fair Credit Reporting Act. Federal laws preempt state laws when they apply to the same situation.
The relevant part of the FCRA provides that, with certain exceptions, “no consumer may bring any action or proceeding in the nature of defamation, …with respect to the reporting of information against any consumer reporting agency, any user of information, or any person who furnishes information to a consumer reporting agency, based on information disclosed pursuant to section 1681g, 1681h, or 1681m of this title, or based on information disclosed by a user of a consumer report to or for a consumer against whom the user has taken adverse action, based in whole or in part on the report except as to false information furnished with malice or willful intent to injure such consumer.” That’s a mouthful, but the key point to remember is this: you can’t sue a credit reporting agency for making an innocent mistake; to bring a defamation action based on an inaccuracy in your credit report, the falsity must have been made with malice or a willful intent to harm the consumer.
