Trans Union Reaches Class Action Settlement Over Inaccurate Credit Reports

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Trans Union, LLC has agreed to pay up to $1.4 million to consumers who obtained a credit report with incorrect information that may have impacted their financial options as part of a class action lawsuit settlement reached Dec. 5.

According to the class action lawsuit, filed three years ago by plaintiff Donna Soutter, Trans Union and its public records vendor allegedly used Virginia Supreme Court information regarding civil judgments that would help the agency better assess a consumer’s risk for a lender. Soutter argued that the data recorded by the credit reporting agency did not include information about settlements or dismissed and vacated cases that would have had an impact on a person’s rating.

Consumers who received one or more inaccurate credit reports from Trans Union will be eligible for damages from the $1.4 million class action settlement fund, of which an un-established portion will go to legal costs. Class Members include approximately 159,000 individuals who, since July 26, 2008, had a Trans Union consumer report delivered that reflected an unsatisfied Virginia General District Court or Virginia Circuit Court civil judgment that had been satisfied, vacated or dismissed.

Class Members will also have their information updated based on the removal of the incorrect civil lawsuit information, as well as receive six months of Trans Union’s primary credit monitoring for free under the proposed class action settlement.

The settlement, as standard practice, stipulates that Trans Union does not admit any wrongdoing in agreeing to the deal, and in the company states that it properly assessed consumers’ risk to lenders based on the statutes of the Fair Credit Reporting Act. Trans Union said it agreed to the class action settlement to avoid the uncertainty and expenses of going to trial.

Plaintiffs are represented by Anthony Bennett, Janelle Mason Mikac and Susan Mary Rotkis of Consumer Litigation Associates PC.

The Trans Union Credit Report Class Action Lawsuit is Donna K. Soutter v. Trans Union LLC, Case No. 10-cv-00514-HEH, U.S. District Court, Eastern District of Virginia.

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