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How LexisNexis Can Hurt Your Finances

Michael Rapp Dec. 26, 2019

Financial struggles take on many different forms, including issues with your credit score or problems on your credit report. Therefore, what happens if there is an error on your credit report? What if these errors come from a source that is out of your control? If an error is made by a third-party credit information reseller (like LexisNexis), can it hurt my credit? What can you do about this? These are very reasonable questions in our modern society, and at the Kansas City-based offices of Stecklein & Rapp, we can provide you with answers.

What is LexisNexis?

Founded in 1970, LexisNexis is an organization that acts as an aggregate location for electronic records, including legal documents, journalistic articles, and research reports. According to their own statistics, LexisNexis holds 83 billion public records on 282 million unique identities — an average of 290 records per identity. A subsidiary of LexisNexis known as LexisNexis Risk Solutions operates as a data collector and reseller for records and analysis, providing data to financial, corporate, healthcare, and government entities. This data collected and resold can come from a number of sources, including (but not at all limited to):

  • Marriage Licenses

  • Business Registrations

  • Real Estate Ownership Records

  • Professional Licenses

  • College Enrollment Records

  • Voter Registrations

Even a simple act like purchasing and using a cell phone, or using your email address to create an account on a website can potentially create a record that will be gathered by LexisNexis and kept on file as a record associated with your identity. These records are then sold to “clients” like banks, credit bureaus, insurance companies, mortgage lenders, and more as a way for these organizations to calculate your risk profile for providing credit.

Can LexisNexis Errors Harm Your Finances?

Unfortunately, while the ability to collect and share this information quickly and easily can be a good thing, it can also create unintended problems. If an error is made on a LexisNexis record associated with you, that same error can then be duplicated and transmitted to its clients, spreading false information about you to agencies and organizations that are using these records to determine your financial standing. Even simple errors or record mix-ups can have far-reaching effects. There are documented incidents involving individual consumers such as:

  • Multiple people sharing the same name, resulting in overlapping records for the wrong person.

  • Slight differences (including two individuals having Social Security numbers differing by only one digit) creating mistaken records associated with the wrong identity.

  • Records associated with a close family member potentially being wrongly attributed to you.

In short, if someone with your name (or a similar name) is at fault in a car accident, defaults on a loan, fails to pay their credit card bills, or does something else resulting in negative consequences, and this record gets mistakenly added to your LexisNexis file and subsequently sold to a credit bureau or mortgage lender, you could suffer serious damage to your credit score through something that is not your fault.

Why You Need an Attorney

You may be suffering the financial effects of a credit report issue that wasn't your fault. If this is the case, trying to trace the problem to its source or get things straightened out can be extremely difficult to accomplish on your own. You have the right to take legal action. Put your case in the hands of knowledgeable attorneys and let professionals provide you with the help you need.

Consumer Credit Protection Attorneys in Kansas City, MO

For over 20 years, the team of experienced attorneys at Stecklein & Rapp (formerly Consumer Legal Clinic, LLC) has been helping individuals fight back after having their financial standing harmed by errors made by agencies and big businesses.

If you have been victimized by errors made on your credit report or are suffering from harassment by creditors or collectors, contact our team at Stecklein & Rapp today and schedule a cost-free analysis of your situation. We have locations in Kansas City, Missouri, Kansas City, Kansas, and Lincoln, Nebraska to serve your needs.