TransUnion LLC, one of the largest US consumer credit reporting agencies, will be offering up to nine months free credit report monitoring to eligible consumers, which it defines as all individuals who had an open line of credit from a credit grantor located in the US anytime between January 1, 1987 and May 28, 2008.
The case, filed in the US District Court in the Northern District of Illinois, claimed TransUnion violated the Fair Credit Reporting Act when it sold consumer information to businesses for their targeted marketing efforts.
The law allows selling publicly available information but not private data and while TransUnion said it did not violate the law, it discontinued the practice in 2001.
Any consumer who had a credit card or a mortgage, auto or student loan, or other open credit account or credit line in the US will be able to choose from two options.
TransUnion, which denied any wrongdoing, is offering a six-month free credit-monitoring service that includes around-the-clock access to the class member’s credit report or an enhanced nine-month credit-monitoring service with the same features plus access to the credit scores used in insurance decisions.
A credit report supplied by TransUnion or its competitors, Experian and Equifax, contains information about current and recent housing, auto loans, credit cards and other credit information, such as whether payments are made on time.
Ken McEldowney, executive director of Consumer Action, told the Los Angeles Times, the settlement is 'mind-boggling'.
“It’s everything we tell consumers that they need to find out if they have problems with their credit,” he said. “They are getting information on how to improve it and information about whether they are creditworthy.”
Under the proposed settlement, TransUnion will also set aside $75 million to cover administrative costs and lawyers’ fees as well as the cost for settling any future lawsuits.
Affected consumers should go to www.listclassaction.com to register to receive the credit monitoring. The site is expected to be accessible no later than June 16.