A class action lawsuit against TransUnion, originally filed in December 2018, has gained attention due to its allegations concerning credit report inaccuracies. The lawsuit claims that TransUnion inadequately investigated and removed certain disputed hard inquiries from consumers’ credit reports between 2016 and 2025. Plaintiffs argue that this failure resulted in violations of the Federal Fair Credit Reporting Act and led to unjust decreases in their credit scores. Instead of properly addressing disputes, consumers were said to have received standard “502 Letters,” which merely directed them to contact the inquirers themselves, rather than resolving the issues directly.
TransUnion has not admitted any wrongdoing. However, a company representative stated that they plan to implement changes regarding how consumer challenges to hard inquiries are handled.
Eligible class members include those who disputed a hard inquiry listed on their TransUnion credit reports and received a “502 Letter” within the relevant time frame. Under the settlement terms, these consumers can expect at least $20 to $30, with the possibility of claims for additional damages, depending on individual circumstances. For instance, if a consumer’s credit score decreased due to the disputed inquiry, they may be eligible for higher payouts that could reach up to $160.
Those wishing to claim additional damages must complete a form on the official class action settlement website by June 24, 2025. Payments from the settlement are expected to be distributed within 90 days of a final hearing scheduled for July 21, 2025, although appeals could delay this process.
As consumers navigate the complexities of credit reporting, this lawsuit exemplifies the importance of addressing errors promptly and understanding one’s rights regarding credit inquiries. Ultimately, the steps taken from this lawsuit could lead to more robust protections for consumers in the credit reporting landscape.