$23M Trans Union Settlement Ends Credit Report Lawsuit Over Alleged Mishandling of Consumer Disputes

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Trans Union has agreed to pay a $23 million settlement to resolve a class action lawsuit that alleged the credit reporting agency unlawfully failed to investigate hard inquiry disputes or remove the challenged inquiries from consumers’ credit files.

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The court-approved website for the Trans Union class action settlement can be found at TransUnionDisputeClassAction.com.

The settlement, which received preliminary court approval on February 24, 2025, covers a class of approximately 485,000 residents of the United States and its territories to whom Trans Union sent a “502 letter” in response to a written dispute of a credit inquiry between December 5, 2016 and January 31, 2025. A description of the 502 letters can be found in the FAQ section of the official settlement website.

According to the Trans Union class action settlement website, class members do not have to do anything to receive a cash payout from the deal. Trans Union settlement payments, which are estimated to be approximately $20 to $30, will be mailed automatically to each consumer’s address on file with the credit reporting agency, the site says. Those who would like to update their address can do so on this page.

Class members who experienced damages as a result of Trans Union’s alleged misconduct can submit a claim form to receive a higher payout amount, expected to be up to $160. This payment is in addition to the automatic cash payment, the settlement agreement relays. All cash payment amounts will depend on how many class members submit a claim attesting to damages, the website notes.

Consumers attesting to damages must file a Trans Union settlement claim form by June 24, 2025.

Head to this page to submit a Trans Union claim form online. You will need your unique notice ID and PIN, which can be found on the personalized settlement notice you should have received by mail or email.

Class members who prefer to file a claim form by mail can request a paper copy from the settlement administrator, court documents share.

Related Reading: TransUnion Violated FCRA Requirements for Consumer Disputes, Class Action Claims

As part of the deal, Trans Union has also agreed to change how it handles disputes and challenges of hard inquiries, the settlement agreement states.

It is now up to the court to decide whether to grant final approval to the terms of the deal at a hearing scheduled for July 21, 2025 in Philadelphia. Settlement payouts will be issued to eligible class members only if the deal receives ultimate court approval, and after any appeals are resolved.

The Trans Union class action lawsuit was filed in December 2018 by a Pennsylvania resident who claimed that after he submitted a dispute to the credit reporting agency regarding an allegedly impermissible hard inquiry, Trans Union neither contacted the company responsible for pulling the man’s credit report nor removed the disputed inquiry from his file. By failing to do so, the credit bureau violated the federal Fair Credit Reporting Act (FCRA), the class action suit contended.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.