TransUnion, Equifax Fined by CFPB for Deceiving Consumers

TransUnion, Equifax Fined by CFPB for Deceiving Consumers

January 3, 2017         Written By John H. Oldshue

Credit reporting agencies TransUnion and Equifax were fined by the Consumer Financial Protection Bureau today for deceiving consumers about the usefulness and actual cost of credit scores they sold. The CFPB felt these credit reporting agencies were encouraging consumers to sign up for expensive recurring payments under false claims.

The CFPB originally launched a TransUnion investigation in September 2015. TransUnion was fined a total of $16.9 million:  $13.9 million will be dispersed to eligible customers who may have been affected by the practices in question, and $3 million goes to the CFPB civil penalty fund. In addition, the company set aside another $2.5 million to cover the cost of legal fees and other compliance expenses.

In addition to paying the fines, TransUnion has agreed to adjust its advertising practices to help consumers better understand what services they are receiving (what is included with their credit scores, credit monitoring, etc.). The company must also request a consumer’s consent for a product that is on a recurring billing cycle after a free trial period. All of this and other modifications to company practices must be outlined in a “comprehensive compliance plan” that the CFPB will review.

Equifax was fined a total of $6.3 million: $3.8 million will go to affected consumers, and $2.5 million to the CFPB’s civil penalty fund.

The most recent Monthly Complaint Report from the CFPB showed that Equifax received more complaints than any of the three major credit reporting agencies. Over the last three months, Equifax had 1,458 complaints issued against them and Experian had 1,247. TransUnion had 1,207.



The information contained within this article was accurate as of January 3, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


john-oldshue

About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.
View all posts by John H. Oldshue
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : 1.5% cash back on all purchases; $150 bonus after spending $500 in first 3 months
Featured No Annual Fee Card
Top Features : 2% cash back on purchases: 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : Perfect credit not required; Reports to major credit bureaus
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time