IANAL but banks have a lot of cash to throw at legal teams. AFAIK you’d have to show evidence of material damages. Seems very hard to automate...might be better for class-action.

Ya I agree. It seems these firms are relying on the fact that each individual suing them would have to put up considerable time and money, and so most don't .

But if some economy of scale could be provided in filing these lawsuits, like those boilerplate will in a box products, then the business of credit reporting in its current form may be made non-viable.

I wonder how many of the major US banks have binding arbitration clauses? I don't claim to know one way or the other, though I thought I heard that one major bank did & it had been standing up in court recently, but I may be mistaken. I also have no idea if they'd hold up in general -- but I'd be curious how many of the T&Cs that you sign have these clauses...

Probably all of them. So you would just have to find someone who had never opened a legitimate line of credit, but for whom a fraudulent line of credit had been opened.