Errors in credit reports can be more than just inconvenient—they can seriously impact your financial future. When credit reporting agencies fail to investigate and correct these errors, consumers may suffer from loan denials, higher interest rates, or damaged credit reputations. That’s exactly what happened in the latest high-profile case involving TransUnion, one of the three major credit bureaus in the United States.
At Sparrow, we’ve tracked several class action settlements that protect consumer rights—from loan servicing privacy violations to wage transparency enforcement. Today, we’re spotlighting the $23 million class action settlement involving TransUnion’s alleged mishandling of credit report disputes.
If you received a “502 Letter” from TransUnion after disputing a hard inquiry on your credit report between December 5, 2016, and January 31, 2025, you may automatically receive compensation—and potentially more if you experienced harm. Read on to understand your eligibility and how Sparrow can simplify the claims process.
Background of the TransUnion Credit Report Dispute Class Action Settlement
The case, officially titled Norman v. Trans Union LLC, was filed in the U.S. District Court for the Eastern District of Pennsylvania. The plaintiffs alleged that TransUnion failed to properly handle dispute requests regarding unauthorized or inaccurate hard inquiries on credit reports.
According to the complaint:
- Consumers submitted written disputes concerning credit inquiries.
- TransUnion responded with a standard “502 Letter” but allegedly did not investigate the disputes as required by law.
- In many cases, TransUnion failed to contact the companies that made the inquiries.
- As a result, disputed inquiries were not removed, potentially damaging consumers’ credit standing.
The lawsuit accused TransUnion of violating the Fair Credit Reporting Act (FCRA), which mandates credit bureaus to conduct reasonable investigations into disputes and correct inaccurate or unverifiable information. Although TransUnion did not admit to any wrongdoing, it agreed to settle the claims for $23 million to resolve the case.
This case shines a light on the importance of regulatory compliance by credit agencies and reinforces consumer rights to accurate reporting and fair dispute resolution.
Who’s Eligible for the Settlement?
You are part of the settlement class if:
- You are a U.S. resident (including U.S. territories), and
- TransUnion sent you a “502 Letter” in response to a written dispute of a credit inquiry between December 5, 2016, and January 31, 2025.
Approximately 485,000 individuals are included in this class.
What You Can Receive
The settlement offers two tiers of compensation:
1. Automatic Payment (No Claim Required)
- If you are part of the class, you will automatically receive a payment estimated between $20 and $30.
- No action or claim form is necessary to receive this base payment.
2. Higher Compensation (Claim Required)
- If you experienced harm or damages due to TransUnion’s failure to remove inaccurate inquiries, you may be eligible for up to $160.
- You must submit a valid claim form detailing how the failure impacted you (e.g., credit denial, interest rate increase).
Final payment amounts will depend on how many valid claims are received.
Do You Need Documentation?
- No documentation is required to receive the base $20–$30 payment.
- If you are claiming the higher amount, supporting information is recommended but not mandatory. Examples include:
- Loan denial letters
- Copies of your credit report
- Proof of increased interest rates or related costs
How to File a Claim with Sparrow
While no claim is needed for the base payment, Sparrow can help you determine if you’re eligible for the higher award and assist in submitting your form accurately.
- Visit the official website: TransUnionDisputeClassAction.com
- Submit a claim form by June 24, 2025, if requesting additional compensation.
- Use Sparrow’s Claim Assistant Tool to:
- Verify eligibility
- Auto-fill the form
- Attach supporting details
Need help or have questions? You can also contact the claims administrator at 800-657-1189 or email info@TransUnionDisputeClassAction.com.
Important Deadlines
| Action | Deadline |
|---|---|
| Submit a claim (higher payment) | June 24, 2025 |
| Opt out or object | June 24, 2025 |
| Final approval hearing | July 21, 2025 |
Case Snapshot
- Settlement Fund: $23 million
- Case Name: Norman v. Trans Union LLC, Case No. 2:18-cv-05225-GAM
- Jurisdiction: U.S. District Court, Eastern District of Pennsylvania
- Website: TransUnionDisputeClassAction.com
- Claims Administrator: P.O. Box 23489, Jacksonville, FL 32241
- Phone: 800-657-1189
- Email: info@TransUnionDisputeClassAction.com
Conclusion
The TransUnion credit report dispute settlement offers meaningful financial relief for consumers whose disputes were mishandled. Whether or not you were harmed, if you received a 502 Letter from TransUnion between 2016 and 2025, you’re eligible for a cash payment.
With Sparrow, you don’t have to navigate this process alone. We’ll help ensure your claim is filed correctly and on time—especially if you’re eligible for more than the automatic payout.
Visit our Class Action News portal for the latest updates on this and other settlements that safeguard your rights as a consumer. Protecting your credit starts with knowing your rights—and claiming what you’re owed.