$23 Million TransUnion Settlement Over Credit Report Disputes: Who Qualifies, How to Claim, and What You Could Get

In a significant legal development, credit reporting giant TransUnion has agreed to a $23 million class action settlement following allegations that it failed to properly investigate consumer disputes regarding credit report inquiries. The settlement, which affects nearly half a million Americans, opens the door for eligible individuals to receive compensation—without even filing a claim in many cases.

What Was the Lawsuit About?

The lawsuit, filed as Norman v. Trans Union LLC in the U.S. District Court for the Eastern District of Pennsylvania, accused TransUnion of violating the Fair Credit Reporting Act (FCRA). Plaintiffs claimed the company failed to:

• Properly investigate disputes submitted by consumers.
• Contact companies that requested credit reports.
• Remove erroneous or disputed “hard inquiries” from credit files.

These hard inquiries can impact credit scores and financial outcomes. By allegedly neglecting its legal obligation to conduct thorough investigations, TransUnion may have caused financial harm to thousands of consumers.

Who Is Eligible for a Payout?

You are eligible for a payment if you received a “502 Letter” from TransUnion in response to a written inquiry dispute between December 5, 2016, and January 31, 2025.

Eligibility criteria:

• Must have a U.S. address (including territories).
• Must have received the 502 Letter in response to disputing a credit inquiry.

There are around 485,000 class members, making this a wide-reaching settlement.

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How Much Money Can You Receive?

There are two types of payouts:

1. Automatic Payout (No Claim Form Needed):
   • All eligible class members will automatically receive between $20 and $30.
   • No action is required to receive this baseline amount.
2. Enhanced Payout (Claim Form Required):
   • Class members who experienced specific harms (such as credit denials or increased loan rates due to hard inquiries) can submit a claim for up to $160.
   • Final payout depends on how many valid claims are filed.

How to File a Claim for a Higher Payout

If you want to claim more than the automatic payout:

• Submit a claim form by June 24, 2025.
• You may need to provide documentation or describe how you were harmed by TransUnion’s alleged practices.
• Claim forms can be accessed through the official settlement website.

⚠️ Important: Do not file a claim if you’re unsure about your eligibility. Filing a false claim can result in penalties.

Key Deadlines

• Claim Form Deadline: June 24, 2025
• Objection/Exclusion Deadline: June 24, 2025
• Final Approval Hearing: July 21, 2025

Contact Information

• Settlement Website: TransUnionDisputeClassAction.com
• Email: [email protected]
• Phone: 800-657-1189
• Mailing Address:
  • Norman v. Trans Union LLC Settlement Administrator
    P.O. Box 23489
    Jacksonville, FL 32241

Legal Teams Involved

• Class Counsel:
  • Francis Mailman Soumilas P.C.
  • Flitter Milz PC
• Defense Counsel:
  • Buchanan Ingersoll & Rooney P.C.

What Happens Next?

The final hearing in July 2025 will determine whether the settlement receives full court approval. If approved, payments will be processed and sent to eligible class members. Those receiving the automatic payout don’t need to take any action—just keep your contact details up to date with the settlement administrator.