In a major win for consumer protection, credit reporting giant TransUnion has agreed to a $23 million class action settlement over allegations that it mishandled disputes regarding hard credit inquiries. If you submitted a dispute and received a “502 Letter,” you could be eligible for compensation—no claim required for the minimum payment. Let’s break down everything you need to know.
What Is the TransUnion Class Action Settlement About?
The lawsuit (Norman v. Trans Union, LLC) claims that TransUnion failed to follow the Fair Credit Reporting Act (FCRA) when consumers disputed hard inquiries on their credit reports. Instead of thoroughly investigating, TransUnion allegedly responded with a generic “502 Letter,” which didn’t resolve issues or verify the accuracy of the inquiry.
Though TransUnion denies any wrongdoing, it agreed to the $23 million settlement to avoid further litigation. The case was filed in the U.S. District Court for the Eastern District of Pennsylvania and received preliminary approval on February 24, 2025. A final approval hearing is scheduled for July 21, 2025.
Who Is Eligible for the Settlement?
You may be part of the settlement if you:
Lived in the U.S. or its territories at the time.
Submitted a written dispute to TransUnion about a hard inquiry on your credit report.
Received a “502 Letter” from TransUnion in response.
Your dispute was submitted between December 5, 2016, and January 31, 2025.
Roughly 485,000 people are estimated to be included. If you received a notice, it likely contains a unique Notice ID and PIN to help file a claim for a higher payment.
How Much Money Can You Receive?
There are two types of payments available:
Automatic Minimum Payment ($20–$30): If you’re eligible, you’ll automatically receive a payment of about $20–$30, no claim required.
Higher Payment (Up to $160): If you were harmed by TransUnion’s alleged inaction (e.g., score drop, credit denial), you can file a claim for a larger payout. You’ll need to attest that:
Your credit score dropped due to the disputed inquiry.
The disputed inquiry was shared with a third party.
You were denied credit, and the inquiry contributed to that denial.
How to File a Claim for a Higher Payment
You must file a claim by June 24, 2025. Here’s how:
Online: Visit TransUnionDisputeClassAction.com and use your Notice ID and PIN.
By Mail: Complete and send the form included in your notice to:
Norman v. Trans Union, LLC
c/o Settlement Administrator
PO Box 23489
Jacksonville, FL 32241
Your claim must be truthful and backed by facts. Filing false information is considered perjury.
What Happens If You Do Nothing?
If you’re part of the class and don’t file a claim, you’ll still receive the automatic minimum payment. However, you:
Will give up your right to sue TransUnion independently over this issue.
Must ensure your mailing address is current. Update it through the settlement site if needed.
Key Deadlines and Final Approval Date
Here are the important dates to remember:
June 24, 2025: Last day to:
File a claim for a higher payout
Object to the settlement
Exclude yourself (opt out)
July 21, 2025: Final hearing date in Philadelphia
Mid-September 2025 (estimated): Payments issued, assuming no appeals (around 51 days after approval)
How to Protect Yourself from Scams
Scammers often target class action cases. Stay safe by:
Only using the official website: TransUnionDisputeClassAction.com
Never paying money to file a claim—it’s free.
Avoiding unsolicited calls or emails claiming to “help” you file.
Contact the administrator directly:
Email: info@transuniondisputeclassaction.com
Why This Settlement Matters for You
Credit reporting errors can cost you loans, jobs, and peace of mind. This case highlights how serious proper credit dispute handling is under the FCRA. Besides compensation, TransUnion has agreed to improve its procedures, meaning better protections for consumers going forward.
If you’re eligible, don’t miss your chance to claim what’s rightfully yours. This is a reminder to check your credit regularly, challenge inaccuracies, and stay informed about your rights.