Equifax and Trans Union were smacked by federal regulators on the first business day of the year, as the credit bureau giants will pay millions to settle allegations they deceptively sold and advertised free credit reports and credit score products.
The Consumer Financial Protection Bureau says the two giant credit bureaus used the so-called “negative option” to trick consumers into costly monthly subscriptions for credit score and report products that were advertised as free or costing $1.
The bureau also said Equifax forced consumers to view ads when they tried to get their free credit reports at AnnualCreditReport.com, a violation of the Fair Credit Reporting Act.
And the CFPB says both firms misled consumers about the value of credit scores they marketed. The proprietary scores sold to consumers are not...