One fine was for poor screening and another for lying to customers.
The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) have issued two fines against TransUnion, mandating that the credit reporting company pay a total of $23 million for consumer violations. The government agencies found that TransUnion regularly handled rental background checks with significant malpractice, issuing many faulty reports about potential renters that led to security freezes or evictions.
TransUnion will pay $15 million for its faulty eviction reporting, the CFPB said. TransUnion will also pay $8 million “for lying to consumers” about requested security freezes and locks requested by tens of thousands of consumers.
“Consumers struggling to find housing shouldn’t be shut out by tenant screening reports that are ridden with errors and based on data from secret sources,” stated FTC’s Bureau of Consumer Protection Director Samuel Levine.
As the Lord Leads, Pray with Us…
- For Director Levine and CFPB officials as they seek to hold credit bureau companies accountable.
- For members of the Federal Trade Commission as they review and assess credit market practices.
Sources: Reuters, AP
