Two Credit Reporting Agencies Caught in Fraud | Chicago Bankruptcy Attorney
Many people rely on credit scores to determine their financial health and stability. Employers occasionally use it to determine the responsibility level of the people they hire. For years, most consumers have relied on a few main credit reporting agencies to determine their score, including Equifax and Transunion. However, the Consumer Financial Protection Bureau (CFPB) announced in January that Equifax and Transunion had been deceiving and taking advantage of consumers.
During the investigation, the CFPB found the two agencies had been misrepresenting the scores provided to consumers and telling them the score reports were also the same ones lenders and businesses received; this was a blatant lie. The investigation also uncovered problems with the way the agencies advertised their products. For example, they used promotions that suggested their credit reports were only $1 or completely free; however, after a trial of seven to thirty days, individuals would be enrolled in a full-price subscription. Some of these subscriptions charged at least $16 or more per month.
Additionally, Equifax was found to be in violation of the Fair Credit Reporting Act (FCRA), which states the agencies must provide a free report every 12 months made available at a central site. Many people were forced to view advertisements for Equifax before seeing the report, which is illegal.
Both of these companies acted incredibly irresponsibly. Most of the country depends on accurate credit ratings for accurate assessments, and some argue the system further marginalizes those who are already struggling financially. The companies have been ordered to pay more than $23 million in fines and restitution.
If you’ve been affected by unfair credit reporting, or you’d like to discuss filing for bankruptcy, talk to our experienced and highly rated Chicago bankruptcy attorneys today. Atlas Consumer Law provides debt-related services to countless individuals to help them obtain financial relief. Our skilled attorneys are aggressive and passionate when it comes to protecting the rights and interests of the people we assist. Our proven strategies can also help turn your negative situation around. We understand how stressful debt can be for most people.
Contact us at (312) 313-1613 or fill out our online form to schedule a case consultation today. Let us see how we can offer you an efficient resolution on your behalf.