Penalty Amount
$15,000,000
The FTC and CFPB settled with Trans Union LLC and its subsidiary for violating the Fair Credit Reporting Act by including inaccurate and incomplete eviction records in tenant screening reports, harming consumers' ability to obtain housing. The settlement requires Trans Union to pay $15 million, with $11 million for consumer compensation and $4 million as a civil penalty, and to implement measures to ensure report accuracy and disclose data sources.
Trans Union must pay $15 million ($11 million to compensate affected consumers and $4 million civil penalty), implement procedures to ensure accuracy of tenant screening reports, prevent inclusion of problematic records, disclose sources of information, provide consumers with their file upon request, and make an adverse action notice letter available on their website.
In-house legal teams should review vendor agreements with data providers (e.g., court record vendors) to ensure they include robust data accuracy warranties, audit rights, and requirements for the vendor to correct inaccuracies. Customer agreements with landlords, property managers, and screening service clients must be examined for clauses guaranteeing FCRA-compliant report generation, mandatory disclosure of all data sources used, and clear procedures for handling consumer disputes and reinvestigations. Data processing addendums (DPAs) should be updated to mandate specific accuracy metrics, regular data source validation, and protocols for promptly removing incomplete or outdated eviction records. Necessary changes include adding express certifications of FCRA compliance, requiring TransUnion to provide clients with summaries of data sourcing methodologies, and strengthening indemnification provisions to cover liabilities from inaccurate reporting.
Entity
Trans Union LLC
Also known as: TransUnion
Industry
Data BrokerOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2023/10/ftc-cfpb-settlement-require-trans-union-pay-15-million-over-charges-it-failed-ensure-accuracy-tenant
tu turss complaint final
https://www.ftc.gov/system/files/ftc_gov/pdf/tu_turss_complaint_final.pdf
tu turss order final
https://www.ftc.gov/system/files/ftc_gov/pdf/tu_turss_order_final.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Trans Union LLC"
"pay a total of $15 million"
"violated the Fair Credit Reporting Act (FCRA)"
"failed to ensure the accuracy of the information included in their tenant background screening reports"
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$106.8M
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