Bad credit car loan consumers and everyone else who applied for the free credit monitoring service offered by TransUnion last year should take note that the company has begun the notification and sign up process.
The free offer
As everyone here at Auto Net Financial knows, there is no such thing as a free lunch. But the offer from TransUnion as part of a settlement really did come close. The credit reporting agency is now fulfilling the terms and notifying consumers. And while free credit reporting may not be an entire lunch, it sure makes for a great entrée – especially for consumers in the market for a vehicle they hope to finance with a bad credit car loan or even an easy credit auto loan.
The settlement
According to the informational web site, a class action lawsuit claimed that TransUnion “violated state laws and the Fair Credit Reporting Act by selling lists containing personal and financial consumer credit-related information to third parties for use in target marketing.” The explanation goes on to state that “the Defendants (TransUnion and Acxiom) provided more information than was allowed under the FCRA to credit grantors or insurance companies…”
While TransUnion was never found guilty of anything (it never went to litigation), both sides agreed to settle the case to avoid “the cost and risk of a trial.” And while the credit reporting agency didn’t lose, consumers who took advantage of the settlement are currently in the process of collecting their “winnings.”
Settlement terms
According to the terms of the settlement, anyone who had an open credit account or an open line of credit from a credit grantor (including automobile loans, bank credit cards, department store credit cards, student loans or a mortgage loan) between January 1, 1987 and May 28, 2008 in the United States qualified to take part in the settlement.
Consumers had 2 options:
1. Sign up for 6 months of free credit monitoring. This gives you unlimited daily access to your TransUnion credit report and credit score for 6 months with the ability to lock your credit report from view by unwanted companies without your consent (unless allowed by law). This normally retails for $59.75. By selecting this option, you can also request a cash settlement (this will be disbursed if there is any money left in a fund after all costs and expenses are paid from the settlement fund.
2. Sign up for 9 months of enhanced free credit monitoring. This includes everything from (1) plus insurance scores and a mortgage simulator service (that shows you what mortgage rates you should qualify for. This normally retails for $115.50. By choosing this option, you give up the rights to sue the Defendants for certain damage claims and you also give up the right to receive a cash payment from the settlement fund.
Registration
Consumers had until September 24, 2008 to register for either choice. Once registered and given final approval by the court, registrants will have 6 months to activate their credit monitoring benefit.
Consumers who registered are now receiving the following communication from TransUnion:
Dear Class Member:
As part of the terms of your Class Action Settlement with TransUnion, you’ve received a six month subscription to TransUnion Credit Monitoring, fulfilled by TrueCredit. Register now and start enjoying the benefits of credit monitoring right away! You’ll get:
• The ability to lock your credit report so third parties, such as lenders or other companies, will not be able to access your credit report without your consent (unless allowed by law);
• Unlimited daily access to your Trans Union credit report and credit score; and
• Credit monitoring with email notification of critical changes to your credit report.
Ready to get started?
Your registration number is <xxxxxxxx>. Be sure to enroll soon as your registration number is only available for a limited time. Please note that our records indicate that you also registered for the potential cash benefit. A final determination as to whether there will be a distribution of the cash benefits and, if any, the amount of any distribution, will not occur before September 2010 and could occur as late as October 2011. You may visit the website www.ListClassAction.com for updates regarding this potential benefit.
Just click here and enter your registration number and you’ll be on your way to credit monitoring!
Sincerely,
TransUnion List Class Action
Settlement Administration
As we see it
For those bad credit auto loan customers that took advantage of TransUnion’s settlement offer, good for you. Knowing your credit score and what’s contained in your credit report are important steps in reestablishing your credit.
For more information on bad credit car loans as well as the bad credit auto loan buying process, visit our web site at www.autonetfinancial.com.
