Tag Archive for fair credit reporting act

Consumer Reporting Agency to Pay $1.8 Million for Fair Credit Reporting Act Violations

June 27, 2011 Credit Manager FTC Updates

Consumer Reporting Agency to Pay $1.8 Million for Fair Credit Reporting Act Violations (FTC release)

Company Provided Sensitive Consumer Credit Information to Marketers In Violation of Law

Teletrack, Inc. has agreed to pay $1.8 million to settle Federal Trade Commission charges that it sold credit reports to marketers, in violation of the Fair Credit Reporting Act (FCRA). This settlement seeks to protect consumers’ privacy by ensuring that their sensitive credit report information is not sold for marketing purposes.

According to the FTC’s complaint, as part of its business Teletrack sells credit reports and other services to businesses – such as payday lenders, rental purchase stores, and non-prime rate auto lenders – that mainly serve financially distressed consumers. These businesses use Teletrack’s credit reports to decide whether and on what terms to provide credit to their customers.

The complaint alleges that Teletrack created a marketing database of information that it gathered through its credit reporting business. It then sold the information in this database – including lists of consumers who had applied for non-traditional credit products – to marketers. For example, Teletrack sold lists of consumers who previously sought payday loans to third parties that wanted to use this information to target potential customers. The FTC’s complaint alleges that these marketing lists were credit reports under the FCRA because they contained information about a consumer’s creditworthiness. The FTC charges that Teletrack violated the FCRA, which makes it illegal to sell credit reports without a specific “permissible purpose” under the statute; marketing is not a permissible purpose.

“The fact that a consumer has applied for a payday loan is credit report information protected by the FCRA,” said FTC Bureau of Consumer Protection Director David Vladeck.
“The FCRA says a credit reporting agency like Teletrack can’t sell a consumer’s sensitive credit report information for mere sales pitches.”

The settlement order resolving the FTC’s charges requires Teletrack to furnish credit reports only to those people that it has reason to believe have a permissible purpose to receive them under the FCRA, or as otherwise allowed by the FCRA. It also requires Teletrack to pay a civil penalty of $1.8 million, and contains reporting and record-keeping requirements to ensure the company’s compliance with the decree.

The Commission vote to authorize the staff to refer the complaint to the Department of Justice, and to approve the proposed order, was 5-0. The DOJ filed the complaint and proposed order on behalf of the Commission in U.S. District Court for the Northern District of Georgia on June 24, 2011. The proposed order is subject to court approval.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendant has actually violated the law. This stipulated order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Stipulated orders have the force of law when signed by the district court judge.

 

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The Red Flags Rule for Fraud & Identity Theft

June 1, 2010 Credit Manager FTC Updates

Because of changes to the Fair Credit Reporting Act -FCRA and the enactment of the Fair and Accurate Credit Transactions Act (FACTA), more businesses are being held responsible for the safety of your financial information. Identity theft and fraud are two of the biggest financial crimes that we consumers face. The Federal Trade Commission and Congress have demanded that business who deal with our personal information follow more stringent guidelines to protect us from fraud and identity theft.

The Federal Trade Commission is making the act of businesses complying as simple as possible and have created a Red Flag Resource Web Site to help businesses comply and educate its employees.

Some of the tools provided by the FTC are DIY workbooks for small risk businesses which walks you through complying and articles that businesses can publish for clients, colleagues and future customers.

Six of those resources to help businesses protect and manage customer information in the Red Flag Program are;

The Red Flags Rule: Are You Complying with New Requirements for Fighting Identity Theft?

The Red Flags Rule: Compliance Tips for Companies Offering Services In and Around the Home

Franchisors: Are You Complying with the Red Flags Rule’s New Requirements for Fighting Identity Theft?

The Red Flags Rule: What Health Care Providers Need to Know About Complying with New Requirements for Fighting Identity Theft

The Red Flags Rule: What Telecom Companies Need to Know About Complying with New Requirements for Fighting Identity Theft [PDF]

The Red Flags Rule: What Utility Companies Need to Know About Complying with New Requirements for Fighting Identity Theft

If you deal with businesses who have your personal information (and who doesn’t, really) then you should familiarize yourself with the FTCs Red Flag Rules. These rules aim at helping to minimize your risk and hold your creditors, hospitals, cable companies and financial institutions to a higher privacy standard.

The FTC has extended its deadline for businesses to comply with Red Flag until December 2010.

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What is Lexington Law Firm Credit Repair

November 27, 2009 Credit Manager Credit Repair Articles & Resources

Like it or not, credit repair companies aren’t going anywhere.  There are thousands of websites that claim they can repair your credit but often they fall short of those promises. Lexington Law is a law firm that specializes in credit repair and yes, its legal.

If you have misleading items on your credit reports and don’t want to try and correct your credit on your own, Lexington can do the work for you. Many people do not want to repair their credit on their own, but they often sign up for services that are either a scam or do not follow the Fair Credit Reporting Act nor the Credit Repair Organization Act.

Lexington Law, as far as credit repair is concerned, will be your best bet because they do follow the law, they do have a good BBB reputation and it is a law firm unlike many credit repair companies.

People  can argue that you can do the work yourself so why hire someone. To that, we say, its a service you are paying for- period. Its no big secret that some people are not cut out to repair their own credit. Perhaps they don’t have time, or don’t know what to do. Perhaps they simply feel more comfortable having representation. It’s their right.

With all the controversy surrounding credit repair we can tell you that we have been offering Lexington Law as a referral for over 12 years. We have yet to find a reputable replacement as far as full service credit repair is concerned. Obviously we like to push education because we feel credit repair is very possible on your own,  but we understand it isn’t for everyone. If that’s your situation then Lexington Law is the best on the market  for reputation and reliability.

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