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Class Action Alleges Trans Union Misled Consumers in Selling Credit Scores

In a recently filed class action case, Sgouros v. Trans Union LLC, plaintiff Gary Sgouros, claims he was misled by Trans Union’s website when he purchased a credit score and a consumer credit report.  Under recent amendments to the Fair Credit Reporting Act (“FCRA”), every consumer is entitled to one free copy of their credit report per year and according to Sgouros, Trans Union’s website misled him and others, into purchasing a credit report and a credit score that was basically useless.

In June of 2013, Sgouros made an online purchase of his credit report from Trans Union’s website.  This purchase included a copy of his credit score and a debt analysis for $39.99.  In order to purchase his credit score, Sgouros was led through a three step process and was able to print out a three in one credit report and a copy of his Trans Union credit score.  After receiving his report and score, Sgouros learned from a lender during the process of buying an automobile, that the credit score he received from Trans Union was inaccurate.  The score Trans Union provided Sgouros was 100 points lower than the score that the car dealership received when obtaining the consumer’s Trans Union report.

After receiving this information from the dealership, Sgouros, along with other consumers who also purchased credit scores from Trans Union, filed suit against the credit reporting agency under the FCRA, for selling consumers a credit score that was derived from a different scoring model than the model used to generate scores at a lenders request.  Trans Union failed to notify consumers who were purchasing their report and credit score that the score provided was different than that which it provided to lenders. 

In his complaint, Sgouros argued that credit reports are free and that Trans Union tried to mislead him into paying for a credit report for $39.99 when he wanted a more complete report that came with a credit score.  By selling the plaintiff this product that has no real value, Trans Union violated the FCRA.  A consumer looking to receive a free copy of his or her credit report can log on to www.annualcreditreport.com to receive one free copy per year. 

If you believe your rights have been violated under the Fair Credit Reporting Act, contact SmithMarco P.C. to speak with a licensed attorney. 

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