Did Equifax and TransUnion Illegally Charge for Credit Score Reports?
If you’ve shelled out money for a copy of your credit report from TransUnion or Equifax over the last few years, the chances are good that you were overcharged. That’s according to an investigation carried out by the Consumer Financial Protection Bureau (CFPB), which ordered the two companies to fork over $23 million to settle claims from consumers. We’ll talk about it in this issue.
How were TransUnion and Equifax ripping people off?
According to investigators, the two companies tricked consumers into signing up for paid subscription services. Here’s how the con went: Equifax and TransUnion advertised credit scores as “free” or costing only about $1. However, there were strings attached, including a $16 monthly fee – details of which were buried in the fine print of their ads. There were also problems with the credit scores themselves. While Equifax and TransUnion assured consumers that the credit scores were the same ones used by banks, they were, in fact, not used to make decisions about loans. In fact, lenders use a host of credit score types, which means no single rating is universally accepted.
How will the $23 million be handled?
The CFPB ordered the companies to pay just over $17.6 million – TransUnion’s share is $13.9 million compared to the $3.8 million Equifax will have to pay. Both companies were fined $5.5 million. Another requirement from the settlement requires TransUnion and Equifax to change their marketing efforts. For example, consumers will now be able to more easily unsubscribe from any recurring payments.
How much should I pay for my credit report?
Regular readers of our blog will know that the Fair Credit Reporting Act requires each of the credit reporting companies – including Equifax and TransUnion – to provide you with a free copy of your credit report once every 12 months.
Get Disciplined With Your Money; Call The Oswalt Law Group
Getting out of debt takes a bit of work and discipline. We know this can be difficult, and are happy to provide help. If you’re tired of dealing with crippling debt, call us here at The Oswalt Law Group for a free consultation. Our number is 602-225-2222