A California judge has put a preliminary stamp of approval on an $8 million settlement in a class action suit against Experian, according to a report in Top Class Actions.
The suit, originally filed in 2011 and later expanded to a class action, accused Experian of providing plaintiffs' credit reports to collection agency Finex Group LLC and violating the Fair Credit Reporting Act by not ensuring that the debt collector was using the information for an approved purpose. Experian faced shelling out $100 to $1,000 in statutory damages per claimant if the case had gone to jury, a considerable payout considering court documents show that the Experian sent more than 40,000 credit reports to Finex.
Under the terms of the settlement, Experian will pay each claimant $375. Last fall, an Experian subsidiary was found to have sold sensitive information to a Vietnamese investigator posing as an investigator.