Tuesday, April 25, 2017

Agency orders TransUnion, Equifax to pay $23M for false ads

By on December 30, 2016

FILE - In this Feb. 27, 2013, file photo illustration, hands type on a computer keyboard in Los Angeles. Spring is a great time to clear out your digital clutter and make sure that you're adequately protected against hackers. A personal cybersecurity clean up should involve evaluating all your passwords, updating your software and taking stock of exactly where all your personal information is stored. (AP Photo/Damian Dovarganes, File)

In this photo illustration, hands type on a computer keyboard in Los Angeles. (AP Photo/Damian Dovarganes, File)

WASHINGTON – Federal regulators have ordered credit-reporting agencies TransUnion and Equifax to pay about $23 million for falsely advertising that the credit scores they sell consumers are the same ones lenders use to make credit decisions.

The Consumer Financial Protection Bureau announced Tuesday that TransUnion and Equifax must pay fines totaling $5.5 million and return about $17.6 million to wronged consumers. The agency also said the two companies lured consumers into payments of $16 or more per month for credit scores and credit-related products.

TransUnion, based in Chicago, and Atlanta-based Equifax Inc. are two of the three major credit-reporting agencies in the U.S. The credit scores they generate are used to determine whether consumers can qualify for a mortgage, a car loan, a cellphone plan and a range of other loans.

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