Oct. 12 (UPI) — After failing to ensure the accuracy of tenant screening reports, TransUnion and its TURSS subsidiary have agreed to pay $15 million to resolve the charges, announced the Federal Trade Commission (FTC) in a statement on Thursday.
The FTC and the Consumer Financial Protection Bureau (CFPB) joined forces to secure this settlement with TransUnion, marking the highest-ever recovery in an FTC tenant screening case.
The FTC highlighted that TransUnion’s inclusion of incorrect and incomplete eviction records often hindered individuals’ chances of finding housing.
According to the FTC’s federal court complaint, TransUnion violated the provisions outlined in the Fair Credit Reporting Act.
The court filing stated, “In numerous instances, Defendants have violated the FCRA by failing to follow reasonable procedures to assure the maximum possible accuracy of information in background screening reports that landlords and others rely on to, among other things, make rental decisions about specific consumers, and by failing to clearly and accurately disclose to consumers the sources of information in background screening reports.”
The FTC emphasized that inaccurate information significantly disrupts consumers’ housing prospects, leading to prolonged searches, higher rental payments, and even outright denial of housing.
“TransUnion’s failure to comply with the law put countless Americans at risk of unjust housing denials,” remarked CFPB Director Rohit Chopra in a statement. He further added, “We are ordering TransUnion to immediately cease its unlawful activities, rectify its flawed business practices, compensate its victims, and pay appropriate penalties.”
The proposed settlement order, which is subject to federal court approval, mandates TransUnion to provide $11 million in consumer compensation, in addition to a $4 million penalty going into the CFPB’s civil penalty fund.
“Consumers who face housing challenges should not be prevented from finding suitable accommodation due to tenant screening reports that are riddled with errors and rely on data from undisclosed sources,” stated Samuel Levine, the Director of FTC’s Bureau of Consumer Protection.
Furthermore, the companies have been instructed to establish protocols aimed at ensuring the accuracy of consumers’ information and enabling them to dispute any inaccuracies in the future.
