TransUnion has agreed to pay $23 million to resolve claims it mishandled consumer credit disputes, affecting thousands of Americans. Eligible individuals do not need to file a claim to receive compensation.
Why is TransUnion paying a settlement?
The class action lawsuit alleged that TransUnion failed to properly investigate credit report disputes and did not remove inaccurate or unauthorized hard inquiries, also known as hard checks. These credit pulls can negatively impact credit scores.
While the credit bureau denied any wrongdoing, it has agreed to settle to avoid further litigation.
The settlement applies to certain consumers who disputed information on their TransUnion credit reports and claimed the company did not respond appropriately, violating federal law.
How much is the settlement and who qualifies?
The total settlement amount is $23 million. Consumers who are part of the class will automatically receive payment without needing to submit a claim form.
To qualify, you must fall within a defined group of individuals affected by TransUnion’s dispute handling practices. Settlement administrators will identify eligible consumers using TransUnion’s records.
Exact payment amounts will depend on the number of participating class members.
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What was the issue with TransUnion’s credit reporting?
Credit reports play a crucial role in financial decisions, including:
- Buying a home or car
- Refinancing loans
- Securing new credit lines
Errors in these reports—such as unauthorized hard checks—can lower credit scores and cause loan denials or higher interest rates.
Pamela Hernandez with the Better Business Bureau says staying on top of your credit report is critical.
“Errors on your credit report can impact everyday decisions like buying a car or refinancing your house,” Hernandez said. “You don’t want surprises when you’re doing something like that.”
How to check and dispute errors on your credit report
Consumers can access their credit reports for free once a week at AnnualCreditReport.com.
If you find inaccurate or suspicious information, here’s what to do:
- Step 1: File a dispute with the credit reporting agency (TransUnion, Experian, or Equifax).
- Step 2: Contact the business that provided the inaccurate information.
- Step 3: Keep records of all correspondence and responses.
You are entitled to a timely and thorough investigation under the Fair Credit Reporting Act (FCRA).
When is the final approval hearing?
The final court hearing to approve the settlement is scheduled for late July 2025. If the court grants approval, payments will be sent automatically, likely within months of the ruling.
No further action is required from eligible class members unless they choose to opt out or object to the settlement terms.
What happens next?
- No claim form is needed — payments will be distributed automatically to those affected.
- Stay informed — if you receive a mailed notice, keep it for your records.
- Check your credit — regular reviews can help you catch and fix errors before they affect your finances.
Consumers who want more information should monitor updates from the official settlement administrator once announced.
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