Credit disputes generally involve situations where one party (the lender) has loaned another party (the borrower) money that they can use. This amount of money is usually called a "credit line" and is most frequently associated with credit cards. The borrower must pay back the amount that they have borrowed, plus some amount of interest charged by the lender. These payments are usually made on a monthly basis.

Credit disputes can arise if there is any disagreement between the lender and the borrower. This can happen for a number of reasons. For instance, a dispute might arise if the borrower is unable or unwilling to keep up with the loan payments.

What Are Some Common Credit Disputes?

Some common credit disputes involve issues such as:

  • Overspending ("maxing out a credit card") resulting in debt 
  • Insufficient funds
  • Credit card fraud and other types of fraud
  • Disputes regarding interest rates on credit loans
  • Disputes involving non-payment of loans
  • Denial of applications due to bad credit (such as a housing application, loan application, financing, etc.)

In many cases, some terms of the credit loan can be negotiated, such as interest rates or repayment schedules. For the most part, credit companies are willing to adjust themselves to specific requests from a borrower. On the other hand, major shortcomings or violations can by either party can lead to legal action.

What Are Some Remedies for Credit Disputes?

Credit disputes can lead to lawsuits between the lender and borrower. Remedies for the lender may include a lien being placed on the borrower’s property. The property may then be transferred to the lender, or sold with the profits going towards missed payments. For the borrower, remedies can include damages awards for any losses caused by a violation. Borrower remedies can also include an injunction allowing the parties to rewrite or edit a lending contract.

Do I Need a Lawyer for Help with Credit Disputes?

Credit disputes can involve a number of different legal theories and concepts. Also, credit laws can differ from state to state. For these reasons, it’s in your best interests to hire a lawyer for help with credit disputes and other issues related to finances. Your lawyer can provide you with legal advice, representation during negotiations, and assistance during court trials. Also, your attorney can help you obtain the appropriate legal remedy for your situation.