Things do not look great for TransUnion. Although it is a well-known credit reporting agency, they keep violating laws and regulations. The CFPB now deemed the company “incapable of operating lawfully,” indicating things are spiraling out of control.
What Is Happening With TransUnion?
There is a serious issue when credit reporting agencies engage in unlawful practices. When said violator continues to repeat mistakes and nefarious practices, things are about to get out of control. TransUnion has been in the crosshairs of regulators for several years now due to some shady practices and repeat offenses. The CFPB, the Consumer Financial Protection Bureau, is fed up with the current situation.
Today, TransUnion is labeled as “an out-of-control repeat offender believing they are above the law”. It is a rather severe label and one that may prove difficult to shake off. However, TransUnion has violated a 2017 order to stop deceptive marketing practices. The company still relies on tricks and other shenanigans for its day-to-day operations, ensuring people fall into the claws of recurring payments that are nearly impossible to cancel.
The latest offense revolves around TransUnion asking consumers for credit card information to verify their identities. That is not illegal, but the online interface seemed to hint at receiving a free credit score. However, that option automatically locks customers into a recurring monthly charge on their credit card. While TU halted these practices temporarily since 2017, the company continues to use “dark patterns” for financial gain.
For now, the CFPB aims to achieve monetary relief for affected consumers, including restitution or returning funds, compensation for unjust gains, injunctive relief, and civil money penalties. Given TransUnion paying nearly $17 million for previous offenses, that restitution may materialize swiftly. However, something needs to change to ensure the company can no longer engage in these deceptive practices.