Credit report

FTC Alleges Credit Reporting Provider Engage in Deceptive and Unfair Practices

On January 13, the FTC announcement a proposed order to conclude with a corporate credit report provider (Respondent) alleging that the Respondent engaged in deceptive and unfair practices. According to the FTC complaint, the Respondent failed to provide companies with a clear, consistent and reliable process for correcting errors in their credit reports, even though it sold these companies products that were supposed to help them improve their reports. The FTC complaint also alleged that the respondent’s telemarketers misrepresented another service to businesses and falsely asserted that businesses had to purchase the service for the respondent to complete the business’s credit profile. . Further, the Respondent allegedly failed to disclose to the Companies that subscription to the service is automatically renewed each year, nor properly disclosed other renewal practices that resulted in increased costs. Under the proposed order, the respondent would be required, among other things: (i) to comply with specific time limits to promptly investigate and correct errors; (ii) inform companies of the results of their investigations; (iii) provide businesses with free access to revised information; and (iv) either delete the disputed information or reinvestigate the information to confirm its accuracy when a company notifies the respondent of incorrect information in its report. Additionally, the proposed order would require the respondent to reimburse certain businesses that purchased its service products between April 2015 and May 2020, and provide many current customers with the ability to cancel their services and obtain refunds. .