Access to data does not equal cash

CJR found this:

...credit bureau TransUnion Coproration has signed the largest class-action settlement in history. TransUnion had sold lists of consumers based on their credit files to others in violation of federal law.

You may recall that credit bureaus are required by law to provide the public with free access to their credit reports. If you go to their website, you can get credit reports from all three bureaus for nothing.

You can't get your credit score, however - because the Fair and Accurate Credit Transactions Act didn't require that. This means that while you are getting your free report - you will be barraged with ads and trapdoors that will ask/persuade/trick you into paying to see your number. This is stupid, but legal.

Now, TransUnion is offering as part of its settlement to provide people's credit score for free - for a period of six months.

The LA Times crows that:

TransUnion normally sells the service for $59.75 or more, giving the settlement a value that could top $10 billion.

Okay, sure - doing the math that way it sounds like a lot of money. But TransUnion isn't cutting a check - they'll change their website for six months to show the credit score and send out email alerts. After six months - they turn off the tap - and go back to business as usual.

These guys have agreed to settle a suit over allegedly selling people's credit information (in violation of federal law) and are basically getting a slap on the wrist.

A missing piece of the LA Times story would have been how much TransUnion was alleged to have made from selling credit information. Their out of pocket on this deal looks to be $75 million (not $10 billion) and I'd bet selling information brings in more than that.

As of June 16, you'll be able to go to www.listclassaction.com (or call (866) 416-3470) and sign up for one of two services.

(also via the LA Times)

*A basic service would provide free credit monitoring for six months...Those who select this service can also apply for a cash payment.

* An enhanced service would provide nine months of free monitoring, plus use of a "mortgage simulator" that lets consumers see whether improving their credit score would affect their mortgage rates and how much they could save if it did...This option also includes access to one's insurance score...

The agreement also creates a $75-million fund that would be used to notify class members about their rights, to pay attorneys and pay any damages agreed to for people who opt out of the class and sue TransUnion on their own. If there is money left in the fund after two years, it would be paid to people who applied for the cash. Consumers who received the enhanced service don't have the right to apply for the money.

I'm glad consumers will get something, but talking this up as the "largest class-action settlement in history" sure looks like they're reading from TransUnion's press release.