TransUnion has revealed that it has agreed to settle charges related to the marketing and sale of its consumer reports and credit scores.
Chicago-based TransUnion disclosed the $19.4 million settlement in a Form 8-K filing with the Securities and Exchange Commission.
The settlement includes $13.9 million in consumer redress, a $3.0 million civil penalty and $2.5 million in administrative and other costs.
TransUnion said the settlement stems from a previously disclosed civil investigative demand from the Consumer Financial Protection Bureau in September 2015.
The demand
was focused on “common industry practices” tied to the advertising, marketing and sale of consumer reports, credit scores and credit monitoring products.
A CFPB consent order
requires the credit services provider to implement changes to how it advertises, markets and sells products and services offered directly to consumers. This includes better disclosures about the credit score being provided and confirmation of negative options.
The order also requires TransUnion to
develop and submit for CFPB approval a comprehensive compliance plan detailing the steps for addressing each action required by the order.
