The CFPB and FTC Accuse TransUnion of Illegal Rental Background Check and Credit Reporting Practices
The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have requested a federal court to order penalties for the rental screening subsidiary of TransUnion for violations of the Fair Credit Reporting Act. TransUnion: (a) did not make sure that the rental background checks that landlords use to evaluate renters were accurate, and (b) withheld from renters the names of third parties that provided the inaccurate information. The CFPB and FTC's request is to fine TransUnion $15 million for its illegal behavior, stop illegal tenant screening practices, and make significant improvements to how it reports evictions. Regarding the financial penalty, $11 million would be paid to consumers and $4 million would go to the CFPB's victims relief fund.
Separately, the CFPB has ordered TransUnion to pay $8 million for lying to thousands of consumers about when it placed or removed security freezes and locks on credit reports. TransUnion told consumers the requests were completed when instead the requests joined its multi-year backlog. It also did not keep active-duty members of the military from pre-screened solicitation lists – which protects servicemembers from identity theft.
The 2018 Fair Credit Reporting Act required TransUnion and other credit reporting companies to offer free security freezes to the public and enhanced protections for active-duty members of the military. This Act also requires that companies respond timely to consumer requests to place or remove security freezes – which with credit locks helps prevent potential identity theft by blocking many third parties from accessing consumers’ credit reports.
TransUnion had annual revenue in excess of $3.7 billion in 2022, and collects information on over 200 million Americans, including information on their payment histories, debt loads, maximum credit limits, current creditors, and related credit relationships. It provides security freezes and security locks of individuals’ consumer reports. TransUnion previously had been accused of improprieties by the CFPB. Those and the current enforcement action stemmed from CFPB's investigations and reports.
Read today’s CFPB and FTC joint complaint and proposed order.
Learn more about credit reports and scores.
Read the remarks of Eric Halperin, the CFPB’s Assistant Director of Enforcement, on today’s actions.
Consumers can submit complaints about financial products and services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372).
