TransUnion $8.31 Million Bankruptcy Credit Report Settlement

Consumers who received a TransUnion credit report between Jan. 6, 2020 and Jan. 31, 2023, that included a bankruptcy remark on a credit account but did not include a public record of a bankruptcy filing may be eligible to submit a claim for up to $1,000 from a class action settlement. The settlement class includes approximately 57,000 individuals.

TransUnion LLC agreed to pay $8.31 million to settle a class action lawsuit alleging it included inaccurate bankruptcy information on consumer credit reports. The lawsuit claims TransUnion reported bankruptcy remarks on credit accounts even when there was no public record of a bankruptcy filing within the previous 10 years.

Who are the class members?

Class members must meet the following criteria:

• They reside in the United States or its territories.
• TransUnion sold its consumer report to a third party at any time between Jan. 6, 2020, and Jan. 31, 2023.
• The report included a bankruptcy remark on a tradeline (credit account).
• The same report did not include a public record of a bankruptcy filing in the public record section.
• There is no government-held public record of a bankruptcy filing for the individual within 10 years prior to the date of the report.

The settlement divides the class into two groups:

• No bankruptcy group: Individuals with no record of a bankruptcy filing at all based on public record searches using Social Security numbers. This class has approximately 21,000 individuals.
• Aged bankruptcy group: Individuals whose record searches identified bankruptcies filed more than 10 years before the date of the TransUnion credit report. This class includes approximately 36,000 individuals.

How much are settlement payments?

Class members have the following benefit options:

• No bankruptcy group: Eligible class members will receive an automatic $100 cash payment with no claim form required.
• Class members in this group can also submit a claim for an additional higher payment of as much as $1,000. The settlement administrator will determine the final payment amount by the number of claims filed.

• Aged bankruptcy group: Eligible class members can submit a claim to receive an estimated $350 cash payment. The settlement administrator will determine the final payment amount by the number of claims filed.

How to claim a class action rebate

No bankruptcy group class members do not need to file a claim to receive the automatic $100 payment.

To receive the additional no bankruptcy higher payment or the aged bankruptcy group payment, eligible class members can file a claim online or print and complete the PDF claim form and mail it to the settlement administrator.

Settlement administrator's mailing address: Brooks v. TransUnion LLC, c/o Settlement Administrator, P.O. Box 16, West Point, PA 19486

The claim deadline is Oct. 30, 2026.

Required claim information

To submit a claim online, claimants must provide the claim number and PIN from the settlement notice they received.

Payout options

• Electronic payment
• Paper check mailed to the address provided on the claim form or address on file (only option for mailed claims)

Settlement fund breakdown

The $8,310,000 settlement fund will include:

• Settlement administration costs: At least $210,000
• Attorneys' fees: Up to $2,770,000
• Attorneys' expenses: Up to $308,000
• Service award to class representative: Up to $50,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Opt-out deadline: Oct. 30, 2026
• Claim filing deadline: Oct. 30, 2026
• Final approval hearing: Dec. 2, 2026

When is the TransUnion credit file error payout date?

The settlement administrator will issue payments to eligible class members approximately 60 days after the court grants final approval of the settlement.

Why is there a class action settlement?

This class action lawsuit alleged TransUnion included inaccurate bankruptcy information on consumer credit reports by adding bankruptcy remarks to credit accounts without a corresponding public record of a bankruptcy filing within the last 10 years. The plaintiff claimed this violated the Fair Credit Reporting Act by failing to ensure maximum possible accuracy.

Trans Union denies the allegations but agreed to settle to avoid the cost and uncertainty of continued litigation and a possible trial.

Sources

1. Claim form
2. Class notice
3. Settlement agreement
4. Settlement website FAQ page