What this means for lenders (LASER's perspective)
The reports in this case were sold to third parties, a group that includes lenders. It is a reminder that a decision can rest on a report entry that is later disputed. Keeping the credit report that supported each decision with the file lets you show what you relied on. Your counsel confirms what applies to you.
What happened
A class action called Brooks v. Trans Union, LLC claims that TransUnion sold consumer credit reports that showed a bankruptcy on a credit account (a "remark") when the same report had no public record of a bankruptcy filing. The plaintiff says that, where there is no public record of a bankruptcy filing within ten years before the report, reporting bankruptcy information this way is inaccurate.
The plaintiff's legal claim is that TransUnion willfully violated the Fair Credit Reporting Act by not following reasonable procedures to assure the maximum possible accuracy of the information in these reports. TransUnion denies that it violated the law or engaged in any wrongdoing.
Who is covered
The settlement class is made up of consumers whose reports TransUnion sold to a third party with a bankruptcy remark but no bankruptcy record. Class member details and deadlines are on the official settlement website.
TransUnion has agreed to pay $8,310,000 into a settlement fund, which covers payments to class members, administration costs, attorneys' fees, litigation expenses and a service award to the plaintiff.
What happens next
The court has not yet given final approval. It will decide at a hearing set for December 2, 2026. Class members' deadlines and the claim form are on the official settlement website.
Court date to watch
- Final approval hearing2026
General reference point, not legal advice. Each lender confirms its requirements with its own compliance counsel. Summaries are written by LASER Credit Access from the sources linked above. LASER Credit Access is not affiliated with the news sources. Provider names belong to their owners.
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