Jessy Edwards  |  May 10, 2022

Category: Legal News

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A class of consumers are urging a California federal court to approve a $9 million settlement with TransUnion that would end claims the credit reporting agency barred them from making purchases because it labeled them as terrorists.
(Photo Credit: II.studio/Shutterstock)

TransUnion Terrorist Class Action Overview: 

  • Who: A class of consumers are asking a California federal court to approve a $9 million settlement with TransUnion.
  • Why: The settlement will end claims the consumer credit reporting agency labeled them as terrorists, blocking them from accessing credit.
  • Where: The case was settled in California federal court.

A class of consumers are urging a California federal court to approve a $9 million settlement with TransUnion that would end claims the credit reporting agency barred them from making purchases because it labeled them as terrorists. 

In a motion filed May 6, lawyers for Lead Plaintiff Sergio L. Ramirez asked the court to approve the parties’ latest settlement deal to end claims brought under the Fair Credit Reporting Act (FCRA).

Ramirez initially filed the class action lawsuit after he was barred from buying a car due to TransUnion telling lenders that he potentially matched two entries in the US.. Department of the Treasury’s Office of Foreign Assets Control’s (OFAC) database of criminals and terrorists. In the claim, he argued that TransUnion did not ensure accuracy as required by the FCRA.

The settlement class includes 1,853 members about whom TransUnion delivered OFAC data to a third party between January and July 2011, as well 6,332 individuals who can demonstrate publication of OFAC data to a third party through a claim.  

Each class member is entitled to a pro rata share of all the funds remaining in the settlement fund after payments of lawyers fees and administration fees, the order states.

Lawyers expect each class member to receive more than $2,000 each, the order says. Lawyers for the plaintiffs can seek $4.5 million in fees. A service award of $75,000 will go to Ramirez, according to the filing. 

TransUnion Class Action in Court for Years

In 2017, a California federal jury ruled that TransUnion had willfully violated the FCRA, and it awarded $8.1 million in statutory damages and $52 million in punitive damages to Ramirez and 8,184 others.

However, last year, TransUnion argued that the class lacked standing with few class members suffering concrete harm and that many in the class should not be eligible for the damages. 

The Ninth Circuit rejected that argument, but did reduce the payout.

Then, in December, the Supreme Court decided to take the case to consider whether a class could be certified by a federal court even if the majority of members hadn’t experienced concrete injuries.

The justices concluded that only those who had their incorrect credit reports supplied to a third-party business could demonstrate harm and had standing in the claim, which was a total of 1,853 people.

Have you ever had any inconsistencies reported on your credit report? Let us know in the comments section!


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14 thoughts onTransUnion Class Action Alleging Company Incorrectly Labeled Consumers As Terrorists Settled For $9M

  1. Sheila says:

    Hello Transunion
    Has denied me access to my credit report and credit score. I tried multiple times to purchase my credit score and this is the response I get this response.
    (Unfortunately, your request cannot be fulfilled online at this time. Please try your request by phone or mail.
    What to do now:
    If you are requesting a personal credit report disclosure, please View instructions to mail in your request opens in a new tab, or contact our Consumer Relations team at (833) 395-6939, Monday – Friday 8 AM – 11 PM EST and Saturday – Sunday 8 AM – 5 PM EST.
    If you are requesting a dispute investigation to correct information on your credit report, and you already know which information you want to update, you can request your dispute by phone at the number above or you can mail your dispute request opens in a new tab.)
    I order by mail and they sent me results of 2 disputes no credit report nor credit score. I ask the operator if they could share with me my credit score and they replied no. I was told to send a request for it by mail, which I had already did. I ask the chat operator was I band from using these tools? They did not answer instead recommended that I get in touch with the tech dept. It seem I’ve been banned from using their website tools after authenticity and denied over the phone and mail as well. I see my Transunion credit score on other website but I’m not allowed to access my Transunion score through the company it self. I need help.

  2. Tiffany fells says:

    add me

  3. Lynise Rowe says:

    Please add me!

  4. Genine Van Horn says:

    Please add me! I was turned down because Transunion gave wrong info

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