Blogs

INDUSTRY NEWS

CFPB hits another company with hefty fine for violations of the FCRA

Clarity Services, Inc., a Florida-based credit reporting agency, agreed to pay an $8 million penalty to the Consumer Financial Protection Bureau amid allegations that the company obtained credit reports on consumers without “permissible purpose.”

Under the Fair Credit Reporting Act, access to consumer credit reports is only permitted for a “permissible purpose,” such as the use of the information for employment purposes. Clarity, who compiles consumer credit reports from third-party consumer credit reporting agencies and sells them to financial services providers, violated this clause of the FCRA when, beginning in July 2011, it began requesting consumer reports for use in the company’s marketing presentations to demonstrate the value of their reports to potential clients.

In one instance, Clarity obtained nearly 190,000 unrequested consumer credit reports from credit reporting agencies for inclusion in a presentation for a prospective client, according to the CFPB Consent Order. The inquiries made by Clarity resulted in consumers’ credit files incorrectly reflecting a permissible inquiry by a lender.

Additionally, the CFPB claims that Clarity violated the FCRA further when it refused to investigate consumer disputes, including those related to credit inquiries, even though the company was aware that information in Clarity’s consumer files was “provided by or generated by unreliable sources, including inaccurate data from furnishers,” according to the Consent Order.

The full text of the CFPB Consent Order can be found here.

Previously, the CFPB had fined two background screening firms $13 million for their failure to take basic steps to provide accurate background screening reports on job applicants. More about that case can be found here.

Source: Consumer Financial Protection Bureau, 12/3/2015

Sending...
Thank you for your interest in Business Information Group. We have received your message and will contact you in one business day or less.
Something went wrong.Try again
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Something went wrong.Try again

Get In Touch

Send a Message *fields required

What are your Interests?optional

Even our RFP PROCESS is state-of-the-art.

Find out why
RFP Kit

What Our Clients Are Saying

The service you provide at Truescreen has been the best I have ever seen in comparison to other vendors I have worked with in the past! You guys rock!

Talent Acquisition Specialist
Retail Store Chain

I am very impressed with your company’s customer service, and the Truescreen portal seems to be an intuitive, user-friendly design.

Learning Coordinator
Public College

Our team loves working with Truescreen and the expedient, thorough service and results we get from you.

Human Resources Executive
Large Hotel Chain

I appreciate all your hard work ensuring that individuals are cleared through our processes. Truescreen makes my job so much easier and less stressful.

Human Resources Analyst
Large Academic Institution
Sending...
Thank you for your interest in Truescreen. We have received your message and will contact you within one business day.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 888-276-8518.
You have exceeded the number of attempts to submit this form. As a result, your IP address has been temporarily blocked.
Our apologies, there was an error processing your request.  Please resubmit your message or contact us at 888-276-8518.

Get In Touch

Contact Us *fields required

What are your Interests?optional

You are leaving Truescreen.com

Ok, Continue Cancel

×
×