TransUnion class action certified over alleged sham debt collector scheme

TransUnion class action overview:

• Who: A federal judge has certified a class action lawsuit against TransUnion LLC.
• Why: The judge certified a class of more than 800,000 consumers in a lawsuit alleging TransUnion sold consumer reports to Liberty Credit Management.
• Where: The TransUnion class action lawsuit was certified in North Carolina federal court.

A North Carolina federal court has certified a class action lawsuit alleging TransUnion sold consumer reports to Liberty Credit Management, a company accused of participating in a fraudulent debt collection scheme affecting more than 800,000 consumers.

Judge Matthew E. Orso granted class certification and also rejected TransUnion’s bid for summary judgment on the same day, putting the case on a path toward a jury trial.

The judge found that whether TransUnion had reason to believe Liberty Credit Management would use the reports for a legitimate purpose is a common question applicable to all class members.

Plaintiff Connie L. Jackson claims TransUnion sold her consumer report to Liberty Credit Management, an alleged sham debt collector with no legitimate claim to any debt she owed.

Jackson says she received a threatening letter from a fake entity called “Blackwater Legal Group” demanding $980.76 for a debt she did not owe, warning of lawsuits, wage garnishment and credit damage to pressure her into paying.

The class action lawsuit alleges TransUnion failed to adequately vet Liberty before granting it access to consumer reports and relied on certifications that Liberty would use the reports for permissible purposes.

The certified class covers all U.S. residents who were the subject of a TransUnion collection prioritization engine report sold to Liberty Credit Management on or after August 12, 2019.

FTC receiver report questioned legitimacy of Liberty office

A court-appointed receiver in a parallel FTC enforcement action — which named Blackrock Services Inc. as a co-conspirator in the debt collection scheme — found Liberty’s registered office was rented solely to satisfy TransUnion’s physical office requirement and described it as having no equipment, files or personnel.

The receiver concluded the operation was “incapable of operating a compliant debt collection operation” and that those behind the debt collection scheme destroyed records related to their activities.

The TransUnion class action lawsuit alleges that “TransUnion made no real effort to vet Mitchell Evans and Liberty Credit Management before granting them access to purchase consumer reports.”

The lawsuit alleges that TransUnion sold Liberty more than 800,000 consumer reports between 2020 and 2025 despite warning signs that Liberty was not operating as a legitimate debt collector.

Jackson and the certified class are seeking statutory damages of $100 to $1,000 per class member, punitive damages, attorneys’ fees and costs following a trial by jury.

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

What do you think of the allegations made in this TransUnion class action lawsuit? Let us know in the comments.

Jackson and the class are represented by Brett E. Dressler of Sellers Ayers Dortch & Lyons P.A., Drew D. Sarrett and Leonard A. Bennett of Consumer Litigation Associates P.C. and Stephen L. Flores of Flores Law PLLC.

The TransUnion class action lawsuit is Jackson v. TransUnion LLC, Case No. 3:24-cv-01069, in the U.S. District Court for the Western District of North Carolina.

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