TransUnion Class Action Lawsuits: FCRA Claims and Your Options

Whether you can claim a TransUnion class action settlement depends on the specific case and whether you fit its class definition. TransUnion has been a defendant in more than one class action under the Fair Credit Reporting Act (FCRA). Each TransUnion class action lawsuit has its own court, settlement administrator and deadlines, and only those sources publish who is included and what a settlement pays.

The FCRA also gives you rights outside any settlement. You can dispute errors on your credit report. You can also sue, but the deadline is the earlier of two years after you discovered a violation or five years after it occurred.

How to Find Out Whether a TransUnion Class Action Applies to You

A TransUnion class action applies to you only if you fit the class definition in that case's court-approved notice. TransUnion has been a defendant in more than one class action. Which ones are open, what they pay and who is eligible are published only by the court and the settlement administrator.

Federal Rule of Civil Procedure 23, published by Cornell's Legal Information Institute, controls this process in federal court. The court must direct notice to every class member a settlement would bind. For money claims, that means the best notice practicable, including individual notice to members who can be identified through reasonable effort. Notice may come by U.S. mail or by electronic means.

Use these steps to test a notice you received:

1. Read the class definition in the notice and compare it with your own history with TransUnion.
2. Find the settlement website and the settlement administrator. A notice usually names both.
3. Write down each deadline the notice lists, including the claim deadline and the opt-out deadline.
4. Do not pay a fee to file a class action claim.

Rule 23 requires individual notice only for members who can be identified through reasonable effort. The class definition decides membership.

For older cases, read about finding unclaimed class action settlement money. To see each stage from filing to payment, read how class action settlements work. If a current error on your TransUnion report is the problem, the FCRA dispute process lets you dispute it.

What FCRA Class Actions Against Credit Bureaus Are About

An FCRA class action against a credit bureau claims that the bureau broke a duty the Fair Credit Reporting Act places on consumer reporting agencies. The law covers TransUnion, Equifax and Experian, the three nationwide credit bureaus. Its accuracy rule sits in the United States Code at 15 U.S.C. § 1681e(b).

That section says an agency preparing a consumer report "shall follow reasonable procedures to assure maximum possible accuracy" of the information about the person. A separate rule sets a 30-day reinvestigation period for disputes. Both rules appear in the table below.

Under Rule 23(a), a class may sue only if it passes four tests:

• Numerosity: the class is so numerous that joining every member is impracticable.
• Commonality: the class shares common questions of law or fact.
• Typicality: the representatives' claims are typical of the class.
• Adequacy: the representatives will fairly and adequately protect the class's interests.

Money claims usually proceed under Rule 23(b)(3). That rule adds two tests. Common questions must predominate over individual ones, and a class action must be superior to other ways of resolving the dispute.

Statutory damages of $100 to $1,000 are available only for willful violations. A negligent violation allows actual damages, costs and attorney's fees. Whether a violation was willful or negligent therefore changes which damages the law allows.

What TransUnion v. Ramirez Decided About Standing

In TransUnion LLC v. Ramirez, the U.S. Supreme Court held that only plaintiffs concretely harmed by a defendant's statutory violation have standing to seek damages from that private defendant in federal court. The Court decided the case, No. 20-297, on June 25, 2021. Justice Kavanaugh wrote the opinion, which is posted by the Supreme Court of the United States.

A class of 8,185 people sued TransUnion. Their credit files carried an alert matching a list kept by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC). The class claimed TransUnion failed to use reasonable procedures to keep their files accurate.

The parties stipulated that only 1,853 class members had misleading reports sent to third parties. That group included the named plaintiff, Sergio Ramirez. The class definition covered a seven-month period.

The Court held: "No concrete harm, no standing." The 1,853 members whose reports went to third parties had standing on the reasonable-procedures claim. The other 6,332 members did not, because their internal files were not provided to third parties during that period.

Two other claims concerned the format of mailings TransUnion sent. On those, the Court held that all 8,185 members lacked standing. The plaintiffs had not shown that the mailing format caused a concrete harm. A risk of future harm alone was not enough for a damages claim.

The holding has a practical effect in federal court. A class member who cannot show concrete harm, such as inaccurate information sent to a third party, may lack standing to recover damages. State-court rules on standing differ. Every member of a class settlement must still be given notice of that settlement under Rule 23.

What the FCRA Allows You to Recover

The FCRA allows recovery of actual damages for a proven violation, and statutory and punitive damages only when the violation is willful. The table sets out each category. Fees and costs are listed separately.

These ranges describe what a court can award in a lawsuit. A class settlement pays what its own court-approved terms provide. The court must approve any settlement of a class action's claims.

Settlements pay in different ways. Some pay a set amount to everyone who files a valid claim. Others divide a fund among valid claims, so each payment depends on how many claims are filed. Some pay more to members who submit documentation and less to members who do not.

The notice for each settlement says which method applies. For tax questions about a payment, read whether settlement payments are taxable.

Deadlines to Sue

An FCRA lawsuit must be filed by the earlier of two years after you discovered the violation or five years after it occurred. The rule is in 15 U.S.C. § 1681p. Whichever date comes first controls.

For example, suppose a violation is discovered six months after it happens. The two-year limit then ends two and a half years after the violation, well before the five-year limit.

Now suppose a violation is discovered four years after it happens. Two years after discovery would be year six, which is past the five-year limit. The five-year limit controls, so one year would remain.

A class settlement adds its own deadlines. The notice sets dates for claim forms and opt-out requests. Missing a claim deadline can end your chance at a payment from that settlement.

Missing the opt-out deadline leaves you bound by the class judgment. A lawyer can explain how the two-year and five-year limits apply to the dates in your situation. For the steps of an individual case, read how to file a lawsuit.

How to Dispute an Error Yourself

You can dispute an error on your TransUnion credit report directly with TransUnion, and the FCRA requires a reasonable reinvestigation within 30 days. This right comes from 15 U.S.C. § 1681i(a). It does not depend on any class action.

1. Get your free credit reports from AnnualCreditReport.com, the website federal law authorizes for free reports.
2. Compare the reports from Equifax, Experian and TransUnion. Note which bureau's file shows the error.
3. Send a dispute to that bureau naming each item you say is incomplete or inaccurate.
4. Keep a copy of what you send and note the date the bureau receives it.
5. Count 30 days from that date. The period can be extended by up to 15 days in some circumstances.
6. Read the result. The bureau must record the current status of the disputed item or delete it.
7. If the error remains, file a complaint about credit reporting with the Consumer Financial Protection Bureau (CFPB).

The CFPB accepts consumer complaints about credit reporting. For a broader overview of the laws that protect you, read our guide to consumer rights.

Claim, Opt Out or Object After a Settlement Notice

A class member who receives a settlement notice can file a claim, opt out, object or do nothing, and each choice has a different result. The notice for the specific case controls. The table summarizes the federal rules.

A member who opts out is not bound by the class judgment. Any individual FCRA claim then stays subject to the limits in 15 U.S.C. § 1681p.

An objection must say whether it covers only the objector, a subset of the class or the entire class. It must state its grounds with specificity. Without court approval after a hearing, no one may be paid to drop an objection or an appeal.

The court approves a settlement only after a hearing. The court must find the proposal "fair, reasonable, and adequate." It weighs whether class counsel and the representatives adequately represented the class and whether the proposal was negotiated at arm's length.

The court also weighs the costs and risks of trial, how claims will be processed and the proposed attorney's fees. It checks whether members are treated equitably relative to each other. The parties must file a statement identifying any agreement made in connection with the proposal.

The court appoints class counsel and decides class counsel's fee. Any class member may object to the fee request.

A class member may also enter an appearance through an attorney. A court may refuse to approve a settlement unless members who passed on an earlier opt-out chance get a new one. For the claim form itself, read our step-by-step guide to filing a settlement claim.

If you want help weighing these choices, you can get matched with a plaintiff-side attorney, free and with no obligation to hire.

Before you sign with any lawyer, read how a contingency fee agreement works.

Frequently Asked Questions

Is there a TransUnion class action settlement I can claim?

That depends on the specific case and whether you fit its class definition. TransUnion has been a defendant in more than one class action, and each one's amount, deadline and eligibility come only from the court and the settlement administrator. A Rule 23 notice states the class definition and the time and manner for requesting exclusion.

What is a TransUnion FCRA class action about?

It claims, on behalf of a group of consumers, that TransUnion broke a duty under the Fair Credit Reporting Act. The FCRA requires a consumer reporting agency to follow reasonable procedures to assure maximum possible accuracy in consumer reports. It also requires a reasonable reinvestigation when a consumer disputes information in a file.

What did TransUnion v. Ramirez decide?

On June 25, 2021, the Supreme Court held that only plaintiffs concretely harmed by a defendant's statutory violation have standing to seek damages in federal court. Of 8,185 class members, the 1,853 whose misleading reports went to third parties had standing on the accuracy claim. The other 6,332 did not. No class member had standing on two claims about mailing format.

How much can you recover under the Fair Credit Reporting Act?

For a willful violation, a consumer can recover actual damages or statutory damages of $100 to $1,000, plus punitive damages the court allows, costs and reasonable attorney's fees. For a negligent violation, recovery is limited to actual damages, costs and attorney's fees. A class settlement pays according to its own court-approved terms.

How long do you have to sue under the FCRA?

You must sue by the earlier of two years after discovering the violation or five years after it occurred, under 15 U.S.C. § 1681p. A class settlement notice sets separate deadlines for claims and opt-outs.

How do I dispute an error on my TransUnion credit report?

Get your free reports at AnnualCreditReport.com and send TransUnion a dispute naming each item you say is incomplete or inaccurate. TransUnion must complete a reasonable reinvestigation within 30 days of receiving it, with up to 15 more days in some circumstances. You can also file a complaint about credit reporting with the Consumer Financial Protection Bureau.

Should I file a claim, opt out or do nothing?

Filing a claim by the deadline is how a class member is considered for payment under the settlement terms. Opting out removes you from the class judgment, and any individual FCRA claim stays subject to the § 1681p deadline. Doing nothing generally means no payment under a claims-made settlement while still being bound. A class member can also object to the settlement or to the attorney's fee request.