Credit Plus Faces $2.4 Million Settlement Over Phantom Monthly Payments on Charged-Off Accounts
A proposed class action settlement covers roughly 28,416 people who received a Credit Plus merged-infile report between November 2021 and June 2026 that showed a non-zero monthly payment on a charged-off account while two of the three major credit bureaus reported a $0 balance. The core allegation is that these fictitious payment obligations inflated borrowers' debt ratios and harmed their ability to obtain mortgages on favorable terms. Claims must be filed by September 29, 2026, with a final approval hearing set for November 5, 2026; individual payments are estimated around $500 but will vary based on total valid claims and final fee deductions.