The Consumer Financial Protection Bureau (CFPB) announced today that one of the largest of the major credit bureaus, Experian was fined $3 million for deceiving customers about the use of credit scores it sold to consumers.
The CFPB said the Costa Mesa, California company had falsely claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decisions, when in fact, that was not the case. Experian also violated the Fair Credit Reporting Act for advertising violations up until March 2014.
In addition to the $3 million fine, Experian must inform consumers about the nature of the scores it sells to consumers, put in place an effective compliance management system, and truthful advertising practices relating to credit scores.
“Experian deceived consumers over how the credit scores it marketed and sold were used by lenders,” said CFPB Director Richard Cordray. “Consumers deserve and should expect honest and accurate information about their credit scores, which are central to their financial lives.”