TransUnion, one of the US major credit reporting bureau, settled a class action lawsuit alleging FCRA violations for $23 million. The settlement involves about 485,000 consumers who had received a certain kind of response letter when they disputed hard inquiries on their credit reports. Deadlines are looming, so qualifying consumers must act fast in order to get their portion of this huge settlement.
Understanding the 502 Letter and what it means for you
The suit revolves around how TransUnion resolved consumer disputes for hard inquiries on credit reports. When consumers complained about suspicious hard inquiries, TransUnion failed or refused to adequately investigate these complaints or delete the disputed items from credit files, the lawsuit alleges. Instead, the company issued form letters known as “502 Letters” to consumers involved.
The 502 Letter consistently explained that “the inquiries listed on your credit report are a record of the companies that obtained your credit information” and told consumers to contact creditors themselves if they thought an inquiry had not been made for legitimate purpose. Plaintiffs contended TransUnion could have made diligent investigations and called the companies at fault for the challenged inquiries instead of sending these fill-in-the-blank letters.
As per court filings, plaintiff Duane Norman Sr. claimed that when he challenged a hard inquiry he believed was improper, TransUnion did not reach out to the company issuing the inquiry or delete it from his credit report. This default response pattern impacted hundreds of thousands of consumers from December 5, 2016, through January 31, 2025.
Who is eligible for settlement payments
You can qualify for this settlement if you have some requirements set by the court. All consumers residing in the United States and its territories with addresses who got TransUnion’s “502 Letter” after filing a dispute of a December 5, 2016, through January 31, 2025, inquiry are class members.
The settlement impacts around 485,000 class members as per TransUnion’s records. You were sent a notice that was specifically targeted towards you by mail or email because you are a class member and are entitled to benefits. Others might have already heard about this case back in March of 2021 when the court first certified the suit as a class action.
Settlement payment options: Automatic vs. Higher payments
The settlement provides two payment levels to eligible class members. Any consumer who qualifies will receive an automatic minimum payment of between $20 and $30 without the need to fill out a claim form. TransUnion will make automatic payments to the address it maintains from when the 502 Letters initially were distributed.
For class members who suffered particular harms because of TransUnion’s unlawful acts, increased payments of up to $160 are possible. To be eligible for the increased payments, you need to file a claim form on oath that you suffered at least one of the following harms:
- Your TransUnion credit score decreased because of the disputed inquiry
- TransUnion disclosed a credit report including the disputed inquiry to a third party
- You were not credited, one of the reasons being the disputed question
The actual balance of increased payments will be based on how many valid claims are submitted. All of these payments are more than the automatic $20-$30 payment the qualifying class members receive with or without filling out additional claims.
Date of key deadline: June 24, 2025
Time is of the essence for members of the class who desire higher settlement payments. June 24, 2025 is the deadline to file claim forms for increased payments. The same date will be used as the deadline for exclusions and objections to the settlement.
To submit claims for higher payments, qualified consumers can submit online at TransUnionDisputeClassAction.com with their own Notice ID and PIN that are included in their notice of settlement. Claim forms may also be submitted by mail to: Norman v Trans Union, LLC c/o Settlement Administrator, PO Box 23489, Jacksonville, FL 32241.
Members whose addresses have changed since they received their 502 Letters can update their addresses on the settlement website so that they will get their automatic payments. Members who would rather receive electronic payment than paper checks may also indicate their preference by going through the website gateway.
Final approval and payment timeline
The settlement received preliminary court approval on February 24, 2025. A final approval hearing is scheduled for July 21, 2025, at 10:00 AM in Philadelphia before Judge Gerald A. McHugh of the U.S. District Court for the Eastern District of Pennsylvania.
If the court grants final approval, settlement payments will be distributed within 14 calendar days of the effective date. However, any appeals could delay the distribution process. Class members should expect to receive their payments approximately 51 days after the judge grants final approval, assuming no significant legal challenges arise.
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