TransUnion and Equifax deceived consumers about the usefulness of the credit scores they marketed.

According to: Auto Finance News Staff

“TransUnion and Equifax deceived consumers about the usefulness of the credit scores they marketed, and lured consumers into expensive recurring payments with false promises,” CFPB director Richard Cordray said. “Credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them.”

The CFPB determined that TransUnion — since at least July 2011 — and Equifax (between July 2011 and March 2014) violated the Dodd-Frank Wall Street Reform and Consumer Financial Protection Act by:

— Deceiving consumers about the value of the credit scores they sold: In their advertising, bureau officials insisted TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores finance companies typically use to make credit decisions. They stressed that, in fact, the scores sold by TransUnion and Equifax were not typically used by finance companies to make those decisions.

— Deceiving consumers into enrolling in subscription programs: In their advertising, the regulator said TransUnion and Equifax falsely claimed that their credit scores and credit-related products were free or, in the case of TransUnion, cost only “$1.” In reality, the CFPB determined consumers who signed up received a free trial of seven or 30 days, after which they were automatically enrolled in a subscription program. Unless they cancelled during the trial period, consumers were charged a recurring fee — usually $16 or more per month. This billing structure, known as a “negative option,” was not clearly and conspicuously disclosed to consumers.

The bureau added that Equifax also violated the Fair Credit Reporting Act, which requires a credit reporting agency to provide a free credit report once every 12 months and to operate a central source — AnnualCreditReport.com – where consumers can get their report.

Until January 2014, the bureau found consumers getting their report through Equifax first had to view Equifax advertisements. The CFPB said this practice violates the Fair Credit Reporting Act, which prohibits such advertising until after consumers receive their report. more...

Comment: WB Speaks

Credit Scores determine your purchase power which included interest rates, months to finance and payments. Acquiring your credit report is the most important item a consumer should do prior to applying for credit. If you don't. You are operating at a disadvantage. It's like buying a car without having money to insure it or put gas in it. Consumers who has bank accounts or belong to a credit union. The loan offer is your best friend. If you dont have one I strongly advise you to get one. Buy doing so you always have a person who understands finance. They preform these services daily. You dont. They are there for you. On the other hand Auto Dealership sales cars daily as well as offer finance. There interest is the dealership. All services perform at a dealership is in the best interest of the dealership. Sales & Service is the driving force which focus on what ever the consumer can bare. (?) Before you walk into a dealership to buy a vehicle. Make sure you know the rules of the game. I am not speaking of researching prices, interest rates, how many months to finance and most of all payments utilizing websites design to inform you with information dealing with retail dealerships. For the most part you are comparing apples against oranges instead of apples against apples.

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