Equifax, Experian, and TransUnion Bankruptcy Discharge Class Action Settlement

Three credit reporting agencies place the credit fate of millions of Americans in their collective hands. A recent class settlement has forced Equifax, Experian, and TransUnion to take reasonable steps to ensure “accuracy in reporting debts discharged in bankruptcy” proceedings.

Plaintiffs in the credit reporting agencies class action lawsuit allege the three defendants reported incorrect debts to creditors that bankruptcy courts had discharged. The erroneous reports prevented consumers from receiving credit from merchants, as well as hurt employment prospects. Equifax, Experian, and TransUnion allegedly reported the debts as in collection or as currently owed financial obligations.

When the plaintiffs filed disputes through the proper channels, the defendants allegedly failed to investigate the disputes as mandated by federal law. The terms agreed to by the defendants in the class action settlement include the delivery of free credit reports to the eligible class members, as well as a punitive cash payment. All three defendants deny wrongdoing, but each defendant has agreed to the settlement to avoid costly long term litigation.

What You Need To Know

According to court documents, eligible class members of the credit reporting agency bankruptcy discharge settlement include “all consumers who have received an order of discharge of Chapter 7 Bankruptcy and who, between March 15, 2002 and May 11, 2009 (or, for California residents in the case of TransUnion, between May 12, 2001 and May 11, 2009), had a credit report issued by a Defendant that contained debts, accounts, judgments or other obligations discharged in bankruptcy that were not reported as discharged in bankruptcy.” Eligible class members can access the Consumer Credit Reporting Assistance website to learn how to receive free credit scores. In addition, class members have the option to select a monetary or non-monetary award for punitive damages.

The deadline to file a valid claim is November 13, 2017. The judge who accepted the class action settlement for the case Hernandez, et al. v. Experian Information Solutions Inc., et al., Case No. 8:05-cv-01070, in the U.S. District Court for the Central District of California, Southern Division has scheduled the final hearing on December 11, 2017. Visit the class action settlement www.BankruptcyDischargeSettlement.com to learn about updates and new developments for the class action settlement.

Because of the large number of plaintiffs and the complexities involved in the class action settlement, several attorneys comprise the class counsel. To learn who is representing the plaintiffs, access the class action settlement website. For the defense, Cindy D. Hanson from Troutman Sanders LLP represents Equifax and Daniel J. McLoon handles the legal responsibilities for Experian, while Julia B. Strickland and Stephan J. Newman from Stroock & Stroock & Lavan represent TransUnion. Each of the attorneys helped negotiate the terms of the class action settlement for the entire defendant class.