Actual Damages in Deceased Cases

When credit bureaus wrongly report you as deceased, the financial harm extends far beyond inconvenience—you may be entitled to recover every dollar you lost as a result of their error.

What are Actual Damages in Deceased Cases?

Actual damages are compensable financial losses resulting from being wrongly reported as deceased, including denied credit applications, lost business opportunities, increased interest rates, and out-of-pocket expenses incurred while correcting the error. These damages represent real economic harm that you can document and prove, such as a mortgage denial that cost you a lower interest rate or business contracts lost because vendors couldn't verify your credit. Under the FCRA, you can recover actual damages regardless of whether the credit bureau's violation was negligent or willful.

Example: A small business owner in Texas was wrongly reported as deceased by Equifax and was denied a $400,000 home loan. The lender pulled his credit, saw the deceased indicator, and immediately withdrew the offer. He lost the house. All of these losses constitute actual damages recoverable under the FCRA.

Why Actual Damages Matter to Your Case

Actual damages form the foundation of your financial recovery when you've been mistakenly reported as deceased. Unlike statutory damages (which are capped at $1,000), actual damages have no limit—you can recover every dollar of documented loss caused by the error. In our practice, we've seen actual damage awards that were substantial for denied credit cards and minor loan denials. The key is thorough documentation: save every denial letter, calculate every financial impact, and track every expense related to correcting the error. These documented losses directly translate to your settlement or verdict amount.

Common Types of Actual Damages in Deceased Reporting Cases

Direct Financial Losses:

Denied mortgage applications (calculate the difference between the interest rate you were denied and the rate you ultimately received)
Lost business loans or lines of credit (document the opportunity and its value)
Denied auto loans (show the higher rate you paid elsewhere or inability to purchase)
Credit card closures (loss of rewards, benefits, or available credit)
Increased insurance premiums (some insurers pull credit and denied coverage triggers higher rates)

Out-of-Pocket Expenses:

Attorney fees paid to resolve the error (IF YOU USED A DIFFERENT LAW FIRM SINCE WE DON'T CHARGE FEES LIKE THAT)
Credit monitoring services purchased to track the error
Certified mail costs for dispute letters
Long-distance phone calls to credit bureaus
Notarization fees for affidavits proving you're alive
Travel expenses if you had to appear in person at credit bureau offices

Lost Business or Employment:

Contracts canceled due to credit check failures
Job offers withdrawn after background checks
Business opportunities lost due to inability to secure financing
Partnership or investor deals that fell through
Professional licenses or certifications delayed due to credit issues

Consequential Damages:

Storage fees if you couldn't complete a home purchase and had to store belongings
Hotel costs if you couldn't move into intended housing
Lost earnest money deposits on real estate
Application fees for loans that were automatically denied
Costs to break existing leases when moves fell through

How to Document Your Actual Damages

Create a Damages Timeline:Start a spreadsheet or document tracking every loss from the date the deceased indicator first appeared to the date it was permanently corrected (or present day if still ongoing). Include:

Date of each incident
Type of loss or expense
Dollar amount (or estimated value for opportunities)
Supporting documentation available
Names of companies or individuals involved

Preserve All Evidence:

Denial letters from lenders or creditors
Email correspondence showing lost opportunities
Contracts or agreements that fell through
Bank statements showing bounced payments or fees
Credit reports showing the deceased indicator
Dispute correspondence with credit bureaus
Screenshots of online denials or account restrictions
Witness statements from lenders, employers, or business partners

Calculate Lost Opportunities: For opportunities that are harder to quantify (like a lost business contract), document:

The nature of the opportunity
Why you were denied or couldn't proceed
How the deceased indicator specifically caused the loss
Reasonable estimates of the value based on similar past transactions or industry standards
Any expert opinions that can support the valuation

Common Questions About Actual Damages

Do I need receipts for every expense? While documentation strengthens your case, you can recover actual damages even without perfect receipts. For example, if you spent 40 hours over three months trying to fix the error, your lost time has value even if you can't produce a timesheet. Courts recognize that being wrongly reported as deceased causes disruption that isn't always documented with receipts.

Can I recover damages for emotional distress as "actual damages"? Emotional distress is typically a separate category of damages, but the costs you incurred due to that distress (therapy, medication, medical treatment) can be included in actual damages. The emotional harm itself is compensated through emotional distress damages.

What if I can't prove the exact dollar amount of a lost opportunity? Courts allow reasonable estimates for lost opportunities when exact calculations aren't possible. For example, if a business deal fell through due to the deceased indicator, you can present evidence of what similar deals typically generate, even if you can't prove this specific deal would have yielded exactly that amount.

| Statutory Damages |