Having good credit is more than just a financial advantage—it’s the key to securing housing, loans, and even job opportunities. But what happens when an error on your credit report locks you out of your future? That’s exactly what happened to Lonnie McCray, a 70-year-old renter who found himself battling an unjust eviction mark on his credit history. His story shines a light on a much bigger problem: the unchecked power of alternative credit reporting agencies and the flaws in the system meant to protect consumers.

 

A Lease Turned Nightmare

For Lonnie McCray, finding what seemed like the perfect rental property was a dream come true. The location and size were just right, and he moved in with optimism. But that excitement quickly faded when he took his first shower in his new home.

 

“I stepped out, and it was like ‘squish, squish, squish’—the whole thing was soaking wet,” Lonnie recalled. His kitchen was no better. The oven was completely inoperable, forcing him to get creative just to cook. Despite his complaints, the property management company’s attempts to fix the issue were half-hearted at best. Eventually, instead of properly repairing the unit, the landlord decided to terminate his lease.

 

Refusing to be pushed around, Lonnie fought back in court—and won. With a judgment in his favor, he thought his housing troubles were behind him. But the nightmare wasn’t over.

 

A False Eviction That Wouldn’t Go Away

When Lonnie tried to rent a new place, he was repeatedly denied. The reason? An eviction record still appeared on his credit report, despite the court ruling in his favor.

 

“I really think it’s just retaliation,” he said. “But all I know is—it’s not right.”

 

Lonnie’s situation reveals a serious flaw in the credit reporting system: even when a case is resolved in a tenant’s favor, inaccurate eviction records can still follow them. And disputing these errors isn’t as simple as making a phone call. Consumers must go through a bureaucratic maze of written disputes, waiting periods, and, too often, dead ends.

 

The Hidden Power of Alternative Credit Reporting Agencies

Lonnie’s credit ordeal wasn’t just the result of a mistake—it was part of a larger issue involving companies like AppFolio, a property management and screening software company. Unlike major credit bureaus, these alternative agencies operate with little oversight, but their reports hold just as much weight when it comes to renting a home.

 

Consumer rights attorney Larry Smith explains that the Fair Credit Reporting Act (FCRA) simply doesn’t do enough to hold these companies accountable.

 

“The creditors are just not accountable enough under this law,” Smith said. “About 40% of every credit report out there contains some inaccuracy. Often, they misread records, see an eviction case, and don’t bother to check the final court order before reporting it.”

 

In 2020, the Federal Trade Commission (FTC) fined AppFolio more than $4 million for selling inaccurate reports about tenants, leading to countless qualified renters being wrongfully denied housing. The settlement required AppFolio to ensure the accuracy of its reports moving forward, but for many renters like Lonnie, the damage is already done.

 

 

Fighting Back Against Credit Reporting Errors

Lonnie’s battle to clear his name was anything but easy, but with the help of TrustDALE’s investigative team, he was able to get the erroneous eviction removed from his record.

 

His case highlights an important lesson for all consumers: credit report errors are common, but they can be fought. If you find inaccurate information on your credit report, here’s what you can do:

  • Request a copy of your credit report from major bureaus (Experian, Equifax, TransUnion) and any alternative credit reporting agencies.
  • Dispute errors in writing with clear evidence, such as court records or paid-off balances.
  • Follow up persistently—credit bureaus are legally required to investigate disputes within 30 days.
  • Seek legal assistance if the credit agency refuses to correct an obvious error.

The Bigger Picture: Reform Is Needed

Lonnie’s story is a reminder that credit reporting agencies wield immense power over consumers’ financial futures—and that power isn’t always exercised responsibly. While the FTC’s fine against AppFolio is a step in the right direction, stronger legal protections and accountability measures are needed to prevent similar injustices in the future.

 

For now, consumers must stay vigilant, monitor their credit reports regularly, and fight back against inaccuracies. If you’ve been affected by an unjust eviction mark or other credit reporting errors, don’t give up—resources and advocates are out there to help.