Under the Fair Credit Reporting Act (FCRA), a credit denial does not have to happen after a dispute with the credit bureaus for a consumer to potentially have a claim. The FCRA requires credit reporting agencies (CRAs) and furnishers of credit information to follow certain procedures for the accurate and fair reporting of credit information. If a consumer disputes inaccurate information with a CRA, the CRA is required to investigate the dispute, and if the dispute is found to be valid, the CRA must correct the information or delete it from the consumer’s credit report.

If a consumer can prove that the inaccurate information was a significant factor in a credit denial, they may have a claim under FCRA. Even if the consumer disputes the information and it’s corrected or removed before the credit denial, if the consumer can prove that the inaccurate information was a significant factor in a credit denial, they may still have a claim under FCRA.

It’s important to note that to win a claim under FCRA, a consumer must prove that the credit bureau or credit furnisher failed to follow the proper procedures, that the inaccurate information was a significant factor in the credit denial, and that the consumer suffered damages as a result.

There is a variety of case law that supports the idea that under the Fair Credit Reporting Act (FCRA), a credit denial does not have to happen after a dispute with the credit bureaus for a consumer to potentially have a claim.

One example is the case of Walker v. Equifax Credit Information Services, Inc., 604 F. Supp. 2d 1220 (E.D. Cal. 2009). In this case, the court ruled that a consumer had a valid claim under FCRA even though the credit denial happened before the dispute with the credit bureau. The court found that the inaccurate information was a significant factor in the credit denial and that the consumer had suffered damages as a result.

Another example is the case of Guimond v. Trans Union Credit Information Co., 45 F.3d 1329 (9th Cir. 1995). In this case, the court held that a consumer who had a credit application denied due to inaccuracies on their credit report could bring a claim under FCRA even if the inaccuracies were corrected before the credit denial.

There are many other cases in addition to these that support the idea that a credit denial does not have to happen after a dispute with the credit bureaus for a consumer to potentially have a claim under FCRA. It’s important to note that these cases are only examples and not a definitive guide, It’s always recommended to consult with a lawyer who is familiar with FCRA and the case law interpreting it to understand the specific details of a case.