TransUnion Charged with Repeatedly Deceiving Consumers

Consumer advocacy group warns against credit monitoring services

On the heels of an announcement by the Consumer Financial Protection Bureau (CFPB) that TransUnion is being charged with violating an enforcement order and continuing to engage in deceptive marketing practices, advocates at the National Consumer Law Center (NCLC) warned against using credit monitoring services.

“This type of flagrant violation is typical behavior for not just TransUnion, but all three credit bureaus,” said Chi Chi Wu, staff attorney at the National Consumer Law Center. “Federal regulators, state Attorneys General, consumer advocates, and private attorneys have been battling a culture of impunity and arrogance by the credit bureaus for decades. Unfortunately, it’s the American consumer who ultimately pays the price for the credit bureaus’ longstanding habit of flouting the law.”

The CFPB noted:

The order was issued to stop the company from engaging in deceptive marketing, regarding its credit scores and other credit-related products. After the order went into effect, TransUnion continued its unlawful behavior, disregarded the order’s requirements, and continued employing deceitful digital dark patterns to profit from customers. The Bureau’s complaint also alleges that TransUnion violated additional consumer financial protection laws.

“TransUnion is an out-of-control repeat offender that believes it is above the law,” said CFPB Director Rohit Chopra. “I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”

While NCLC views today’s move as a step in the right direction, the advocacy group called on the CFPB to do even more to protect consumers from out-of-control credit bureaus.

“We commend the CFPB for taking strong and decisive action in the face of TransUnion’s outright noncompliance with a law enforcement order that the company itself agreed to,” stated Ariel Nelson, staff attorney at the National Consumer Law Center. “We hope and expect to see more from the CFPB to rein in the credit bureaus’ bad behavior. No company should be allowed to use deceptive practices such as digital dark patterns–tricks and trapdoors built into a website to lead consumers to unknowingly click on an agreement to make a purchase or authorize recurring payments–and plain old misrepresentation to sell products.”

Nelson also warned that consumers should avoid the credit bureaus’ credit monitoring products at all costs. “These products are a waste of your money. And when credit monitoring agreements include forced arbitration clauses, they can also force you to sign away your rights to take legal action if there is an error in your credit report.”

“Always use annualcreditreport.com to order your credit report, and you may want to order by phone or mail to avoid accidentally getting charged for credit monitoring. Check your credit card statements and call to unenroll from credit monitoring if you see a charge for it,” Nelson added.

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