TransUnion Sued for Sharing Data with Fake Debt Collector
TransUnion allegedly violated the Fair Credit Reporting Act by providing consumer data to a fake debt collection operation. You can protect yourself by monitoring your credit reports, demanding debt validation, and reporting suspicious collection activity. If you've been contacted by questionable collectors, take action to verify the debt before responding.
Respond to CollectorsTransUnion faces a class action lawsuit for allegedly selling consumer data to a fraudulent debt collector. The credit reporting giant may have violated the Fair Credit Reporting Act (FCRA) by sharing sensitive information with an unverified scam operation.
You deserve protection from these violations. Understanding this case helps you safeguard your own financial information.
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Respond to Collectors NowWhat Happened in Jackson v TransUnion
Connie L. Jackson filed this lawsuit in the U.S. District Court for the Eastern District of Virginia. She represents herself and potentially thousands of affected consumers nationwide.
The complaint targets TransUnion’s alleged failure to follow FCRA guidelines. Specifically, the lawsuit cites violations of sections 1681b and 1681e(a). These sections protect consumers by limiting who can access credit information and why.
TransUnion allegedly sold consumer reports to Liberty Credit Management, Inc. The problem? Liberty Credit Management was a fake debt collection agency.
Individuals using the names Mitchell Evans, Mitchell Steven Evans, or Mitch Evans ran the scam. They operated under two fake business names:
- Liberty Credit Management
- Blackwater Legal Group
Neither entity had legitimate corporate existence. Yet TransUnion provided them with sensitive consumer information anyway.
TransUnion Failed to Verify the Debt Collector
The lawsuit outlines three major allegations against TransUnion:
Unlawful Furnishing of Consumer Reports
TransUnion violated section 1681b by sharing consumer reports for impermissible purposes. The fraudsters used these reports to send fake debt collection letters. They demanded payment for debts that never existed.
No Reasonable Verification Procedures
The complaint claims TransUnion violated section 1681e(a) by failing to verify Liberty Credit Management. The company should have implemented procedures to confirm the collector’s legitimacy. TransUnion didn’t take these necessary steps.
Invasion of Consumer Privacy
By providing reports to a fraudulent entity, TransUnion invaded consumer privacy. Congress created the FCRA specifically to prevent this type of breach. TransUnion’s actions undermined these critical protections.
The Blackwater Legal Group Scam Letter
Jackson received a fraudulent collection letter in September 2022. The letter came from “Blackwater Legal Group” using a fake Richmond, Virginia address.
The scam letter falsely claimed Jackson owed $980.76 to Cashnet USA. It threatened serious legal consequences, including:
- Wage garnishment
- Property liens
- Negative credit reporting
- Bank account seizure
- Subpoenas of personal references
- Fraud charges
Every claim was false. Jackson owed nothing to Blackwater Legal Group or Cashnet USA.
The letter used abusive and deceptive language designed to frighten consumers into paying. It claimed a civil judgment would damage Jackson’s credit score. It threatened to pursue fraudulent activity charges against her.
These tactics violated federal debt collection laws. TransUnion’s data sharing enabled the entire scheme.
Fight Back Against Collector Threats
Facing harassment from a debt collector? Our partner Solo helps you respond to lawsuits and verify suspicious debt claims. You can stop scammers and protect your rights.
Why This Matters for Your Privacy
TransUnion is one of three major credit reporting agencies in the United States. The company has access to vast amounts of sensitive consumer information.
Credit bureaus must ensure they only share data with legitimate entities. They must verify who receives consumer reports and why.
The lawsuit argues TransUnion failed this fundamental responsibility. The company allowed a fraudulent debt collector to access and misuse consumer reports.
This breach of trust has serious implications. Other credit reporting agencies might have similar verification gaps. You could be vulnerable to scams if these companies don’t implement stricter procedures.
Real Harm to Real Consumers
Fraudulent debt collection practices cause significant damage:
- Credit score harm from false reporting
- Unwarranted legal threats and stress
- Financial losses from paying fake debts
- Time wasted disputing fraudulent claims
- Emotional distress from harassment
The lawsuit seeks to hold TransUnion accountable for enabling these harms.
Who Could Join This Class Action
The lawsuit seeks class action status. Thousands of consumers across the country could potentially join.
The class includes all individuals who had consumer reports furnished by TransUnion to Liberty Credit Management. It also includes similar entities that received reports for impermissible purposes.
The timeframe covers the past five years. If you received suspicious debt collection letters during this period, you might be affected.
Potential Damages and Compensation
The FCRA provides specific remedies for violated consumers. You could receive:
- Statutory damages between $100 and $1,000 per violation
- Punitive damages for willful violations
- Attorney’s fees and court costs
- Actual damages for proven financial harm
Given the scope of alleged violations, TransUnion could face substantial financial penalties.
How to Protect Yourself from Debt Collection Scams
You can take action to safeguard your financial information. Start with these essential steps:
Monitor Your Credit Reports Regularly
Check your credit reports from all three major bureaus. Look for unauthorized inquiries or accounts you don’t recognize. You’re entitled to free annual reports at AnnualCreditReport.com.
Demand Debt Validation
When a collector contacts you, request debt validation in writing. Legitimate collectors must provide proof you owe the debt. Scammers typically can’t or won’t provide this documentation.
Send your validation request within 30 days of first contact. The collector must stop collection activity until they provide verification.
Verify the Collector’s Identity
Research any debt collection agency that contacts you. Check state licensing databases and Better Business Bureau records. Search online for complaints about the company.
Real debt collectors have verifiable business addresses and licensing. Fake collectors use P.O. boxes or non-existent addresses.
Never Pay Without Verification
Don’t make payments before confirming the debt’s validity. Scammers pressure you to pay immediately using untraceable methods. Legitimate collectors accept multiple payment options and provide documentation.
Report Suspicious Activity
File complaints with the Consumer Financial Protection Bureau and Federal Trade Commission. Report suspected scams to your state attorney general’s office.
These reports help authorities identify patterns and shut down fraudulent operations.
What Happens Next in the Lawsuit
The case will proceed through federal court in Virginia. TransUnion must respond to the allegations and present its defense.
The court will decide whether to certify the class action. If certified, more consumers can join the lawsuit. Discovery will reveal TransUnion’s internal procedures and communications.
The outcome could set important precedents. Courts will clarify credit bureaus’ responsibilities under the FCRA. The case may prompt stricter industry standards for verifying data recipients.
Settlement negotiations could occur at any stage. TransUnion might agree to compensation and policy changes. Alternatively, the case could go to trial for a jury verdict.
Your Rights Under the Fair Credit Reporting Act
The FCRA gives you powerful protections against credit reporting errors and abuse. Understanding these rights helps you fight back against violations.
Credit Bureaus Must Verify Information
Credit reporting agencies must maintain reasonable procedures ensuring report accuracy. They must verify the identity and legitimate purpose of anyone requesting your reports.
You Can Dispute Inaccurate Information
Credit bureaus must investigate disputes within 30 days. They must correct or delete information they can’t verify. You have the right to add statements explaining disputed items.
Limited Access to Your Reports
Only entities with permissible purposes can access your credit reports. These include lenders, employers (with permission), insurers, and landlords. Random companies can’t buy your credit information.
Right to Sue for Violations
You can sue credit bureaus and furnishers for FCRA violations. You don’t need to prove actual damages for statutory violations. Courts can award damages, attorney’s fees, and court costs.