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Experian gets USD 3 million fine for deceiving customers

Monday 27 March 2017 09:33 CET | News

Experian, a credit-reporting agency, has received a fine of USD 3 million by the Consumer Financial Protection Bureau (CFPB) for “deceiving consumers” about how their credit scores would be used.

In addition to the fine, Experian was ordered to be truthful when selling scores to consumers.

The agency told consumers that the credit scores they were paying to see were used by lenders to make credit decisions. Nevertheless, according to CFPB, the lenders did not use the scores Experian was selling.

The action by the consumer agency represented its second major action in 2017 aiming to control credit bureaus for failing to give the facts when selling products. In January 2017, the Consumer Financial Protection Bureau fined Equifax and TransUnion for deceiving consumers about the cost and meaning of their credit scores. Those reporting agencies between them were required to pay USD 17.6 million in restitution to customers and another USD 5.5 million in fines to the CFPB.

Experian disagree with the consumer agency’s conclusions and said the order from the consumer agency dealt with products sold in the past, and does not reflect its current marketing practices, according to AJC.com.

Still, Experian, Equifax, and TransUnion, are often the top three most complained about companies in the Consumer Financial Protection Bureau’s monthly reports, the online publication continued.


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Keywords: Experian, credit score, CFPB, lending, loans, utility bills, account data, fine
Categories: Securing Transactions | Digital Identity, Security & Online Fraud
Securing Transactions | Digital Identity, Security & Online Fraud
Countries: World
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Securing Transactions

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