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TransUnion Facing $56 Million Penalty in Federal Repeat Offender Lawsuit
The CFPB is also targeting the credit reporting firm in a second unrelated matter.
April 26, 2022
Two weeks after the Consumer Financial Protection Bureau (CFPB) filed a repeat offender suit against TransUnion (TRU) and a top executive for violating a 2017 law enforcement order in which the company promised to halt illegal and deceptive marketing practices related to credit scores and related products, the company is quantifying the potential financial impact. After settlement negotiations failed, TransUnion more than doubled its legal reserve related to the matter to $56 million.
It’s now clear the CFPB isn’t through with TransUnion.
TransUnion’s latest 10-Q also revealed a second, unrelated CFPB investigation that was opened just weeks prior to the collapse of settlement negotiations in the aforementioned matter. In the latest matter, the CFPB informed the company it may also recommend the CFPB take legal action against TransUnion related to the accuracy and disclosures of its tenant and employment screening business.
The company created what it calls an immaterial reserve related to the latest matter. TransUnion says it’s also possible the penalty associated with the first matter may be larger than the $56 million it has set aside.
Related: EFX, EXPGY FICO, VRSK
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