TransUnion class action certified over alleged failure to block fraudulent credit report items

TransUnion class action lawsuit overview:

• Who: Plaintiff Lesley Kaplan filed a class action lawsuit against TransUnion LLC.
• Why: Kaplan claims TransUnion failed to properly block fraudulent transactions from consumer credit reports as required by law.
• Where: The class action lawsuit is pending in Pennsylvania federal court.

A Pennsylvania federal judge certified a class of nearly 281,000 consumers in a lawsuit alleging TransUnion failed to properly block fraudulent transactions from credit reports.

Plaintiff Lesley Kaplan claims TransUnion violated the Fair Credit Reporting Act (FCRA) by denying requests to block allegedly fraudulent charges without first honoring those requests as required under federal law.

According to the complaint, Kaplan discovered in 2023 that an unknown individual had used her Wells Fargo credit card to make unauthorized purchases, including about $900 in charges at Target. She reported the suspected identity theft to police and filed a report with the Federal Trade Commission before asking TransUnion to remove the fraudulent debt from her credit report.

TransUnion allegedly denied her request using a standardized response known as “Letter 775,” which stated the request fell under exceptions, such as errors, misrepresentations or valid transactions. The class action lawsuit claims this response violated the FCRA, which requires credit reporting agencies to first block disputed information upon receiving proper documentation, then investigate the claim.

Kaplan seeks to represent a nationwide class of consumers who received similar denial letters after requesting that fraudulent transactions be blocked from their credit reports.

Court finds common issues support class certification

U.S. District Judge Wendy Beetlestone granted class certification, finding that Kaplan’s claims raise common legal questions applicable to hundreds of thousands of consumers.

The court certified a class of individuals who received similar denial letters from TransUnion within a two-year period, noting that approximately 280,763 such letters were sent nationwide.

The judge rejected TransUnion’s argument that individualized investigations prevented class treatment, finding the central issue is whether the company’s standardized practice of denying requests before blocking information violates the FCRA.

The court also found Kaplan’s claims are typical of the class, as other consumers allegedly experienced similar harm, including time spent addressing inaccuracies, emotional distress and potential financial consequences from inaccurate credit reports.

Because the FCRA limits private plaintiffs to statutory damages — typically between $100 and $1,000 per violation — the court found a class action is the most practical way to resolve the claims.

Kaplan is seeking statutory damages and other relief on behalf of the class.

Meanwhile, TransUnion is facing a class action lawsuit alleging it failed to properly secure the personally identifiable information of more than 4.4 million individuals exposed in a data breach earlier this year.

What do you think about these TransUnion credit report claims? Let us know in the comments.

The plaintiff is represented by Erika Angelos Heath, James A. Francis, Ksandros Cani, Lauren K.W. Brennan and John Soumilas of Francis Mailman Soumilas P.C.

The TransUnion class action lawsuit is Kaplan v. TransUnion LLC, Case No. 2:24-cv-02438, in the U.S. District Court for the Eastern District of Pennsylvania.

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