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Trans Union Disputed Bankruptcy on Credit Report Class Action

No one is happy to see a bankruptcy on their credit report—particularly when they have never had a bankruptcy. It’s particularly galling if the consumer gets the entry removed, only for it to appear again on another item. The complaint for this class action alleges that Trans Union, LLC does not conduct reasonable reinvestigations of disputed bankruptcy information and prejudices lenders by providing inaccurate information.

The class for this action is all persons with an address in the US or its territories, between January 6, 2020 and the resolution of this case, to whom Trans Union sent reinvestigation results removing a bankruptcy remark from a tradeline as a result of the consumer’s dispute, and about whom Trans Union later sold a third party a consumer report containing a bankruptcy report on another tradeline from the same furnisher as the previously-removed bankruptcy remark.

Trans Union is one of the Big Three credit reporting agencies (CRAs). When a consumer disputes an item in his or her file at a CRA, the Fair Credit Reporting Act (FCRA) requires that the CRA “conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate and record the current status of the disputed information, or delete the item from the file” within thirty days.

The plaintiff in this case, William Norman Brooks, III has never had a bankruptcy. Among the accounts he has had over time with Bank of America, NA (BofA) are a credit card and a line of credit.

On January 3, 2020, a different person with a similar name, William E. Brooks, filed for bankruptcy in Mobile, Alabama. The public Alabama bankruptcy records also identify a William Eugene Brooks.

On or around January 15, 2020, Plaintiff Brooks asked for a copy of his Trans Union file. According to the complaint, that credit report listed the B of A credit card along with the remark, “Chapter 13 Bankruptcy; Closed by Credit Grantor.” The same report “also listed Plaintiff’s credit cards with Macy’s and The Home Depot with the same bankruptcy remark.” No bankruptcy remark was applied to the BofA line of credit and no bankruptcy notation was made in the public record section, the complaint says.

On January 16, Plaintiff Brooks sent Trans Union a detailed letter to dispute the bankruptcy entries. “As a result of Plaintiff’s dispute,” the complaint alleges, “Trans Union removed the bankruptcy remark from the B of A credit card account, and confirmed that no bankruptcy remark appeared on the BofA line of credit tradeline.”

However, the complaint alleges that at some point the bankruptcy remark appears to have been attached to the BofA line of credit.

On or around March 11, 2020, Plaintiff Brooks applied for a personal loan. The complaint alleges, “As a result of the inaccurate appearance of the bankruptcy record reported by Trans Union, Plaintiff’s application for credit was denied.”

The complaint claims that Trans Union has acted “in reckless or conscious disregard of Plaintiff’s rights.”

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Trans Union Disputed Bankruptcy on Credit Report Complaint

January 6, 2022

No one is happy to see a bankruptcy on their credit report—particularly when they have never had a bankruptcy. It’s particularly galling if the consumer gets the entry removed, only for it to appear again on another item. The complaint for this class action alleges that Trans Union, LLC does not conduct reasonable reinvestigations of disputed bankruptcy information and prejudices lenders by providing inaccurate information.

Trans Union Disputed Bankruptcy on Credit Report Complaint

Case Event History

Trans Union Disputed Bankruptcy on Credit Report Complaint

January 6, 2022

No one is happy to see a bankruptcy on their credit report—particularly when they have never had a bankruptcy. It’s particularly galling if the consumer gets the entry removed, only for it to appear again on another item. The complaint for this class action alleges that Trans Union, LLC does not conduct reasonable reinvestigations of disputed bankruptcy information and prejudices lenders by providing inaccurate information.

Trans Union Disputed Bankruptcy on Credit Report Complaint
Tags: Credit Reports, Failure to properly investigate/correct errors on credit report, Providing Inaccurate Information on Credit Reports