CFPB Sues TransUnion

The Consumer Finance Protection Board has filed a lawsuit against TransUnion — one of the major credit reporting agencies. According to the CFPB:

Today, the Consumer Financial Protection Bureau (CFPB) is filing a lawsuit against TransUnion, two of its subsidiaries, and longtime executive John Danaher for violating a 2017 law enforcement order. The order was issued to stop the company from engaging in deceptive marketing, regarding its credit scores and other credit-related products. After the order went into effect, TransUnion continued its unlawful behavior, disregarded the order’s requirements, and continued employing deceitful digital dark patterns to profit from customers. The Bureau’s complaint also alleges that TransUnion violated additional consumer financial protection laws.

Notably, a central point of the CFPB’s claim is the violation of a previous order from 2017. This means the CFPB is claiming that TransUnion was aware of the wrongdoing and continued to do it.

As The Bay State Banner reports, the violations include:

• Ignoring the agency’s 2017 enforcement order and instead continuing to engage in deceptive conduct in both its marketing and sales

• Cheating consumers in the sale of its products, services and subscriptions

• Deceiving consumers through its digital dark patterns

The Philadelphia Tribune reports some rather pointed statements from CFPB director Rohit Chopra:

“In my first six months as director, the Consumer Financial Protection Bureau has refocused its efforts to align with the objectives that Congress set out for the agency,” said Chopra. “The CFPB is shifting enforcement resources away from investigating small firms and instead focusing on repeat offenders and large players engaged in large-scale harm … I expect that this may lead to more litigation, but also lend greater legitimacy to agency actions.”

…

“TransUnion is an out-of-control repeat offender that believes it is above the law,” Chopra said on April 12, the day of the legal action. “I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”