In a class action settlement the U.S. District Court in Chicago allows free monitoring to all of the American credit card holders . Under the terms, the card holder may qualify for six or nine months of daily monitoring of your credit file plus unrestricted access to your credit report and score. To be eligible, you need to have had any form of open credit account - a charge card, student loan, auto loan or mortgage - at any time between Jan. 1, 1987, and this past May 28. About 160 million American consumers are estimated to come under the criterion.
The free monitoring services could prove especially useful for home buyers who need to keep a sharp eye on their credit reports in the months immediately preceding their loan applications. Any significant glitch, inaccurate negative information, or missing positive information in their files could depress their credit scores dramatically. That, in turn, could make it tougher for them to obtain the best rates in today’s market - where lenders are demanding higher credit scores for their standard rates, and often won’t touch applicants who have low scores. For home buyers with minimal down payments, there’s a double whammy: Mortgage insurers have imposed strict minimum credit scores for applicants with less than 20 percent cash down payment.
TransUnion, one of the three dominant credit repositories has agreed by the settlement. It can be recalled that the litigation against TransUnion dates to 1998. The plaintiffs first charged that the company sold consumers’ personal data to marketers in violation of federal law. Sixteen class-action suits from around the country were later consolidated into a single case against TransUnion filed in U.S. District Court in Chicago. TransUnion on the other hand, denied all such allegation, but, as part of the settlement, agreed to create a $75 million fund to compensate affected class members. Because the class was defined as virtually anyone who had an open credit account anytime during the past 21 years, there’s a good chance you’re a member.
The settlement sets up a tiered menu of remedies for you to choose from, including:
– Nine months of free credit file monitoring services if you agree not to file an individual lawsuit against TransUnion seeking damages. In addition to monitoring - where the bureau alerts you by e-mail within 24 hours of any significant change in your credit data - you can also lock your entire file so that lenders, insurance companies and others cannot access your TransUnion report without your permission.
– Six months of free credit monitoring, credit lock privileges and unlimited access to your credit report and score. This option, valued at $59.75, allows you to receive a possible cash payment out of the $75 million fund if any money is left over after paying lawyers’ fees, notification costs, and priority payouts to named plaintiffs.
– Even if you opt to file an individual lawsuit against the company, you are still eligible to receive six months of free credit monitoring.
Source: San Francisco Chronicle
Filed under Class Action, Settlements | Tags: Class Action Settlement, Credit Lock, Credit Report, Damages, Eye, free monitaring, Litigation, Mortgage insurers, Settlement, TransUnion, violation of federal law | Comment Below
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