Credit Reporting Company Misstated How Credit Scores It Sold Were Used

Source: www.consumerfinance.gov

The Consumer Financial Protection Bureau (CFPB) today took action against Experian and its subsidiaries for deceiving consumers about the use of credit scores it sold to consumers. Experian claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decisions. In fact, lenders did not use Experian’s scores to make those decisions.

“Experian deceived consumers over how the credit scores it marketed and sold were used by lenders,” said CFPB Director Richard Cordray. “Consumers deserve and should expect honest and accurate information about their credit scores, which are central to their financial lives.”

Under the consent order, Experian must:

• Pay a $3 million penalty
• Truthfully represent the usefulness of credit scores it sells
• Put in place an effective compliance management system