TransUnion; TransUnion, LLC; TransUnion Interactive, Inc.; and John T. Danaher
On April 12, 2022, the Bureau filed a lawsuit in the federal district court for the Northern District of Illinois against TransUnion, parent company of one of the three nationwide consumer reporting agencies, and two of its subsidiaries, TransUnion, LLC, TransUnion Interactive, Inc. (collectively, the TransUnion Companies), which are headquartered in Chicago, Illinois, as well as former executive John Danaher. On January 3, 2017, the Bureau issued an order against the TransUnion Companies to address the Bureau’s findings that they deceptively marketed credit scores and credit-related products, including credit monitoring, to consumers. In this action, the Bureau alleges that the TransUnion Companies and Danaher have violated multiple requirements of the Bureau’s Order in violation of the Consumer Financial Protection Act of 2010 (CFPA), including enrolling consumers in negative option products without obtaining required consents; failing to offer a simple mechanism for cancelling products; and failing to provide required disclosures. The Bureau also alleges that the TransUnion Companies’ marketing and sale of its credit-related products have, in several ways, been deceptive in violation of the CFPA, including by misrepresenting that products were free or $1; misrepresenting that credit card or other payment information provided by consumers would be used for identification purposes rather than payment; misrepresenting the central characteristics of its VantageScore credit score; and misrepresenting that cancellation of products would publicly expose the consumer’s personal information and that re-enrolling in the product is the only way consumers can protect their information. The Bureau further alleges that the TransUnion Companies’ advertisement of credit-related products on annualcreditreport.com, a website intended to provide consumers access to free credit reports, undermined the purpose the website, in violation of Regulation V. Also, the Bureau alleges that the TransUnion Companies violated the Electronic Fund Transfer Act (EFTA) and its implementing regulation, Regulation E, by failing to obtain required written authorization for recurring charges to consumers’ debit cards and for failing to provide consumers with copies of such authorizations. Finally, the complaint alleges that by violating EFTA, Regulation E, and Regulation V, the TransUnion Companies have violated the CFPA. The Bureau seeks redress to consumers, disgorgement, appropriate injunctive relief, and the imposition of civil money penalties.