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posted by janrinok on Friday January 06 2017, @04:51AM   Printer-friendly
from the colour-me-surprised dept.

In personal finance, practically everything can turn on one's credit score. It's both an indicator of one's financial past, and the key to accessing necessities—without insane costs—in the future. But on Tuesday, the Consumer Financial Protection Bureau announced that two of the three major credit-reporting agencies responsible for doling out those scores—Equifax and Transunion—have been deceiving and taking advantage of Americans. The Bureau ordered the agencies to pay more than $23 million in fines and restitution.

In their investigation, the Bureau found that the two agencies had been misrepresenting the scores provided to consumers, telling them that the score reports they received were the same reports that lenders and businesses received, when, in fact, they were not. The investigation also found problems with the way the agencies advertised their products, using promotions that suggested that their credit reports were either free or cost only $1. According to the CFPB the agencies did not properly disclose that after a trial of seven to 30 days, individuals would be enrolled in a full-price subscription, which could total $16 or more per month. The Bureau also found Equifax to be in violation of the Fair Credit Reporting Act, which states that the agencies must provide one free report every 12 months made available at a central site. Before viewing their free report, consumers were forced to view advertisements for Equifax, which is prohibited by law.


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  • (Score: 2, Insightful) by Anonymous Coward on Friday January 06 2017, @05:11AM

    by Anonymous Coward on Friday January 06 2017, @05:11AM (#450104)

    Government-granted monopolies fleece the people, and what happens? The government gets a bonus.

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  • (Score: 2) by davester666 on Saturday January 07 2017, @09:33PM

    by davester666 (155) on Saturday January 07 2017, @09:33PM (#450844)

    These aren't government-granted monopolies. They are entirely private companies, initially as a way to "help" companies determine how credit-worthy you are, but now have switched to a model of selling your information to anyone with a dollar, including you.