This story appeared in Bank Digest.
Experian Holdings, Inc., one of the nation's largest credit reporting agencies, has agreed to pay a $3 million civil penalty to settle allegations brought by the Consumer Financial Protection Bureau that Experian deceived consumers about the use of the credit scores they purchased. According to the bureau, Experian represented that the "educational" credit scores it sold to consumers were used by lenders to make credit decisions when, in fact, lenders did not use the educational scores.
The consent order also charged Experian with violating the Fair Credit Reporting Act by placing advertisements on web pages that consumers accessed when obtaining their free annual credit reports. Experian did not admit any wrongdoing.
Commenting on the bureau's action, Senate Banking Committee Ranking Member Sherrod Brown (D-Ohio) said, "The CFPB's action today will help ensure that consumers who make the effort to track and correct their credit information aren't misled by unfair products and deceptive advertising."