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SettlementCritical Risk

FTC and CFPB Settles with TransUnion for $15M Over Inaccurate Tenant Screening Reports

Trans Union LLCOctober 12, 2023Federal Trade Commission

Penalty Amount

$15,000,000

Summary

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.

Remedy

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.

Monetary PenaltyConsumer RefundsInjunctionCompliance ProgramCorrective Notice

Contract Impact

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to mandate specific accuracy metrics, regular data source validation, and protocols for promptly removing incomplete or outdated eviction records.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.

Contract Search Terms

tenant screening report accuracy standardsdata source disclosure requirementsFCRA compliance certificationconsumer dispute resolution procedureseviction record reporting policiesaudit rights for data accuracyindemnification for FCRA violationsdata provider warranties

Laws Cited

Fair Credit Reporting Act

Violation Types

Entity Details

Entity

Trans Union LLC

Also known as: TransUnion

Industry

Data Broker

Official Sources

Source Evidence

Entity Name
"Trans Union LLC"
Fine Amount
"pay a total of $15 million"
Laws Cited
"violated the Fair Credit Reporting Act (FCRA)"
Violation Types
"failed to ensure the accuracy of the information included in their tenant background screening reports"

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