Universal Credit Services FCRA $225K class action settlement

Universal Credit Services agreed to a $225,000 class action settlement to resolve claims it violated the Fair Credit Reporting Act (FCRA) by claiming that living consumers were deceased on consumer reports.

The settlement benefits individuals who were the subject of a bi-merge or tri-merge report using the legacy Universal Credit Services system between April 8, 2020, and Oct. 13, 2023, and whose reports include at least one notation related to a deceased status while at least one of the consumer reporting agencies returned a credit score and there was activity on a tradeline with 180 days of the report.

According to the class action lawsuit, Universal Credit Services provided consumer reports that indicated mortgage applicants were deceased due to erroneously combined reports despite information from credit reporting agencies indicating that the consumers were alive. These reports allegedly violated the FCRA.

Universal Credit Services is a mortgage-verification company now known as Xactus.

Universal Credit Services hasn’t admitted wrongdoing but agreed to a $225,000 settlement to resolve the Fair Credit Reporting Act class action lawsuit.

Under the settlement terms, class members can receive an equal share of the net settlement fund. Class counsel estimates that each participating class member will receive around $194, though actual payments may be higher or lower depending on settlement fund deductions and the number of participating individuals.

The deadline for exclusion and objection is April 13, 2024.

The final approval hearing for the settlement is scheduled for May 15, 2024.

To receive a settlement payment, class members may need to file a claim by April 13, 2024. Class members who received a notice that they are part of the “automatic payment group” do not need to file a claim. All other class members must file a claim to receive a settlement payment.

Who’s Eligible

Individuals who were the subject of a bi-merge or tri-merge report using the legacy Universal Credit Services system between April 8, 2020, and Oct. 13, 2023, and whose reports include at least one notation related to a deceased status while at least one of the consumer reporting agencies returned a credit score and there was activity on a tradeline with 180 days of the report.

Potential Award

$194 (estimated)

Proof of Purchase

N/A

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

04/13/2024

Case Name

Hinkel, et al. v. Universal Credit Services LLC, Case No. 2:22-cv-01902-KBH, in the U.S. District Court for the Eastern District of Pennsylvania

Final Hearing

05/15/2024

Settlement Website

HinkelSettlement.com

Claims Administrator

Hinkel v. Universal Credit Services LLC
c/o Settlement Administrator
PO Box 16
West Point, PA 19486
questions@HinkelSettlement.com
833-215-9289

Class Counsel

Michelle Drake 
Joe Hashmall
BERGER MONTAGUE PC

Defense Counsel

David Gettings
TROUTMAN PEPPER HAMILTON SANDERS LLP