WASHINGTON–The FTC and the CFPB have entered into an agreement that requires TransUnion to pay $15 million over charges it failed to ensure the accuracy of its tenant screening reports.
The two government agencies said Trans Union and subsidiary violated the FCRA by failing to remove inaccurate or incomplete eviction records from consumer reports, harming the ability of people to obtain housing
In a complaint filed in federal court, the FTC and CFPB alleged Colorado-based TransUnion Rental Screening Solutions, Inc. (TURSS) and its parent company, Trans Union, based in Chicago and commonly known as TransUnion, violated the Fair Credit Reporting Act (FCRA) by failing to ensure the accuracy of the information included in their tenant background screening reports.
What Company Does
The agencies noted TURSS provides background screening reports about consumers to thousands of clients, including rental property owners, property management companies, employers, and other background screening companies, for tenant and employee selection. They further noted the reports may include information about consumers’ criminal and eviction records, including the amount sought by a landlord in court, any judgment amount the court may award, and the amounts owed by consumers.
“Inaccurate and outdated information in tenant screening reports can significantly hamper consumers’ ability to find housing, costing them time and money by prolonging their search for housing, requiring them to pay additional application fees and spend time correcting errors in their background reports,” the FTC and CFPB said in a joint statement. “TURSS obtains eviction records from third-party provider LexisNexis Risk and Information Analytics Group, Inc. but has failed to take steps to ensure the accuracy of the data it was provided, according to the complaint.”
Other Alleged Failures
The FTC and CFPB said TURSS failed to follow reasonable procedures to:
- Prevent the inclusion of multiple entries for the same eviction case
- Accurately report the disposition of eviction cases it included in its reports
- Accurately label the monetary amounts associated with those cases
- Prevent the inclusion of sealed eviction records in its background reports.
“Until April 2021, TURSS often reported developments in the same eviction proceeding as separate events, making it appear as if a consumer had more than one eviction,” according to the complaint.
The agencies said the company took steps to change that practice only after learning of the FTC’s investigation, but also failed to follow reasonable procedures to accurately report the outcome of evictions, such as reporting an eviction was filed without reporting that it was also dismissed months or years before, or reporting that a landlord was awarded a judgment in an eviction proceeding when the case was actually dismissed.
Additional Allegations
In addition, the complaint states:
- The company also included inaccurate labels in its reports that mischaracterized the nature of certain information in consumers’ eviction records
- Labeled money that a landlord claimed a consumer owed as “Judgment Amount,” giving the false impression that this was the amount awarded by a court.
- Charges that TURSS failed to put in place reasonable procedures to prevent eviction records that had been sealed, or restricted from public view, by a court from appearing in its reports.
- That TURSS violated the FCRA by failing in many instances to provide consumers with the names of third-party vendors from whom it received criminal and eviction records included in its tenant screening reports, which made it harder for consumers to correct errors in their background reports.
The Proposed Settlement
Under the proposed order, which must be approved by a federal court before it can go into effect, the agencies said TURSS and Trans Union LLC will be required to pay $11 million, which will be used to compensate consumers, and a $4 million civil penalty, which will go to the CFPB’s civil penalty fund.
“This is the largest amount ever recovered in an FTC tenant screening matter,” the agencies said.
In addition, the companies must also take steps to address the allegations of the complaint and help enable consumers to dispute inaccurate information in the future.
Just Because It’s Autumn Doesn’t Mean Falling for Schemes to Overcharge You for CU Industry News. Instead, Try This Crisp Offer
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news”” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?