TransUnion FCRA Settlement: $2.5M

U.S. consumers whose data was sent through TransUnion's Triggers For Collection product to Portfolio Recovery Associates more than two business days after PRA requested deletion of that consumer's information, between Jan. 20, 2021 and Dec. 31, 2023.

No documentation is required. Eligible individuals will be identified through company records and will receive payments automatically.

Credit reporting giant TransUnion has agreed to pay $2.5 million to resolve a lawsuit claiming the company held onto consumer data longer than it should have.

The case alleged that TransUnion violated federal privacy law by continuing to share information with a debt collection agency even after receiving requests to remove that data from its systems.

The lawsuit focused on TransUnion's Triggers For Collection product, a service that alerts debt collectors when there are changes to a consumer's credit profile. Portfolio Recovery Associates, one of the largest debt collection agencies in the country, used this service to track consumers and was supposed to be able to request that specific individuals be removed from monitoring.

According to the complaint, when Portfolio Recovery Associates submitted deletion requests, TransUnion failed to process them within the required timeframe. Instead, the company allegedly continued transmitting consumer data for more than two business days after being told to stop—a practice plaintiffs say violates the Fair Credit Reporting Act.

The FCRA sets strict rules for how credit bureaus handle consumer information. Among other requirements, the law obligates these agencies to maintain accurate records and to stop sharing data when it's no longer appropriate to do so.

The lawsuit argued that TransUnion's delayed response to deletion requests fell short of these standards.

TransUnion has not acknowledged any violation of the FCRA or other wrongdoing. The company agreed to the settlement to resolve the litigation without further legal proceedings.

Settlement Payments and How They Work

Consumers who qualify for this settlement do not need to submit a claim form. TransUnion and Portfolio Recovery Associates will use their records to identify class members automatically.

Everyone who qualifies and doesn't opt out will receive an equal share of the settlement fund after legal fees and administrative costs are deducted. Based on current estimates, each class member should receive at least $40, though the final amount could be higher or lower depending on how many people are in the class.

A final approval hearing is scheduled for Dec. 15, 2025, after which payments will be distributed to eligible consumers.