• CMG MORTGAGE, INC. NMLS #1820

CFPB Fined Equifax and TransUnion $23 Million+

  • January 10, 2017

Equifax and TransUnion, two major credit reporting bureaus in the United States, have been fined by the Consumer Financial Protection Bureau (CFPB) for falsely representing credit scores and luring consumers into paid subscriptions.  The bureaus’ combined restitutions and fines top $23 Million total. 

TransUnion was ordered to reimburse $13.93 Million to consumers and pay an additional $3 Million civil fine.  Equifax was ordered to reimburse $3.8 Million and pay a $2.5 Million civil fine.  The CFPB alleged that the bureaus wrongfully deceived consumers by misrepresenting credit scores provided, that were different than the scores used by financial firms to make lending decisions.  TransUnion and Equifax were also unclear about the price structure of their services, advertising them as free and then enrolling consumers into subscription plans that cost $16/month.

CFPB Director Richard Cordray said, “credit scores are central to a consumer’s financial life and people deserve honest and accurate information about them.” The CFPB reports that the faulty practices date back to July 2011 for TransUnion and March 2014 for Equifax.

Equifax, TransUnion, and their competitor Experian are the most widely accepted credit bureaus by lenders nationwide.  In addition to the hefty fines, both companies will be revising their marketing practices to more accurately depict the cost of the services provided. 

 

Sources:  CNBC, Washington Post, LA Times

 

Carlos Aguilar

NMLS # 791382

Carlos Aguilar

PHONE: (949) 864-8131
carlosa@cmgfi.com

MY VIDEO
CMG Image
© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).