Proposed class-action lawsuit could mean $10,000 payouts for affected Canadians

Canadians who use credit reporting agencies Equifax and TransUnion could cash in on a new proposed class-action lawsuit.

Law firm Klyden filed a class action against Equifax and TransUnion with the Superior Court of Quebec on behalf of two affected consumers, it announced in a notice on Monday.

The law firm says that in 2025, one of the representatives, Kevin Villeneuve, received several alerts from Equifax indicating that a new mortgage had been added to his credit file, despite already having a mortgage on his home.

After investigating the situation, Villeneuve discovered that this mortgage belonged to another customer with the same name as him, whose information had been mistakenly included in his credit file.

According to the class action, Villeneuve had to be persistent in order to have his credit file corrected. The credit bureaus allegedly did not help Villeneuve and continued for months to insist that the mortgage belonged to him.

"The issue has been documented in the media for several years — when there is a problem with your credit file, neither Equifax nor TransUnion is there to help you," explained Marie-Philip Simard, lawyer at Kylden Legal. "The consumer is left to resolve the issue on their own, often speaking with multiple representatives from the credit agencies, without result."

An Equifax spokesperson told us in an email that it is aware of the proposed class action.

"Equifax denies fault or liability regarding these claims and will respond to this through the appropriate legal channels," stated the spokesperson.

We also reached out to TransUnion for a statement and will update the story once the company replies.

The Canadian Credit Agency, a company specializing in restoring citizens' credit files with Equifax and TransUnion, assisted in the case.

According to its President, Alain Fortier, nearly 79 per cent of credit files contain errors.

"The current system places responsibility on the wrong shoulders. It's crazy – I have to threaten them just to get things moving," he stated.

Who could be a part of the class action, and how much compensation is it seeking?

According to Kyden Legal, the class action seeks to compensate anyone living in Canada who has requested a correction to their credit file from one or both of the defendants due to inaccurate personal information, and whose correction has not been made adequately or in a timely manner, since May 5, 2023.

The plaintiffs are seeking compensation of $5,000 in damages for each class member, in addition to $5,000 in punitive damages per class member.

It's important to note that the proposed class action still needs approval from the Superior Court to proceed. The allegations have not been proven in court.

Klyden Legal is encouraging consumers to contact them if they have tried to resolve credit file issues with Equifax and TransUnion in order to register for the class action. It's not mandatory, but it will keep you updated on the developments of the case. You can register and find more details about the class action on the law firm's site.

This isn't the only legal action filed against Equifax this year. Another class action alleges that the plaintiff's credit file with Equifax was repeatedly accessed by a third-party credit monitoring platform.