TransUnion Target of Regulatory Action by CFPB, FTC, Must Pay $23 Million Penalty

The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have taken regulatory action against global credit profiling firm TransUnion (NYSE: TRU), claiming the company failed in regard to rental background checks. Additionally, the two agencies claimed TransUnion withheld the names of third parties that provided inaccurate information from impacted renters.

The CFPB and FTC have requested a court order for TransUnion to pay $15 million for its actions. At the same time, the CFPB has ordered TransUnion to pay $8 million for “lying to consumers” for failures to place or remove security blocks on credit reports for “thousands” of customers.

The agencies state that in 2018, Congress enacted legislation to require TransUnion and other credit reporting agencies to offer free security freezes to the public. Companies must now respond timely to consumer requests to place or remove security freezes. This is to deter identity theft and other illicit activity.

CFPB said that in the past seven years, TransUnion has been the subject of four enforcement actions.


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