WASHINGTON – The Consumer Financial Protection Bureau last month fined Experian, one of the nation’s largest credit-reporting agencies, $3 million based on claims the company and its subsidiaries deceived customers.
The federal regulator also ordered Experian truthfully represent how its credit scores are used moving forward.
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“Experian deceived customers 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.”
The regulator claims the credit-reporting agency misled consumers by saying its credit scores were used by third-party lenders in deciding whether to approve loans and lines of credit. But the CFPB points out no single credit score or credit-scoring model is used by every lender.
The CFPB also says Experian violated the Fair Credit Reporting Act by requiring consumers to view Experian advertisements before getting a yearly free credit report, which is prohibited under the law.
Experian is required to develop and implement a plan to make sure it complies with federal consumer laws moving forward.
