CFPB Reports Complaints of Credit Monitoring Services

Credit Reporting Agencies like TransUnion, Experian, and Equifax have recently started offering consumers credit monitoring services where consumers can pay a fee to presumably keep a closer eye on their credit data. As a story in the American Banker explains, the CFPB complaint database has shown a surge in complaints regarding these services:

The charges, which are public on the CFPB’s complaint database, have alarmed consumer advocates. They say the data suggests the credit bureaus — most notably TransUnion — have resumed questionable disclosure practices already identified in prior enforcement actions that effectively trap unknowing consumers into expensive plans they never sought.

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At least 86 people this year alone have filed complaints with the CFPB saying they had been for charged a fee for TransUnion’s monthly credit monitoring service but that they didn’t recall signing up for the service. At least 27 made similar accusations against Experian, and four similar complaints were filed against Equifax, according to the CFPB data. Many of the complainants said they felt scammed or deceived, with some even alleging fraud.

The entire article is informative and worth the read. Also, a key point is that consumers can obtain a free credit report from each CRA once a year by going to annualcreditreport.com.