TransUnion to pay $23M to resolve federal tenant screening, credit reporting lawsuit

TransUnion settlement overview: 

• Who: TransUnion was ordered to pay a combined $23 million in a stipulated order following complaints from the Federal Trade Commission and Consumer Financial Protection Bureau. 
• Why: TransUnion’s rental screening entity is accused of not keeping accurate records for background checks and not timely updating security freezes on consumer credit reports. 
• Where: The TransUnion settlement came in federal court in Colorado.
• How to find help: Consumers who were rejected by a rental agency due to a tenant-screening error may qualify to participate in a Fair Credit Reporting Act tenant screening class action lawsuit investigation.

TransUnion was ordered to pay a combined $23 million in a stipulated order following complaints from the Federal Trade Commission (FTC) and Consumer Financial Protection Bureau (CFPB) related to the company keeping inaccurate background check records in its rental screening entity.

TransUnion must pay $11 million to a redress fund for those hurt by the inaccurate rental screenings along with a $4 million civil fine to the FTC.

The TransUnion settlement also included $8 million for placing or removing security freezes and locks in a timely manner on the credit reports of tens of thousands of consumers, according to the CFPB. Of that, $3 million will go to consumers and $5 million to the CFPB’s victims relief fund.

Any money left in the $11 million TransUnion credit reporting fund must go to the FTC, who will later continue to disperse the funds to consumers who were impacted. TransUnion has 60 days after the order to come up with a comprehensive written plan on how to disperse the fund following the TransUnion settlement guidelines.

“Americans across the country were put at risk of wrongful housing denials because TransUnion failed to follow the law,” said CFPB Director Rohit Chopra. “We are ordering TransUnion to cease its yearslong illegal activity, clean up its broken business practices, redress its victims, and pay penalties.”

Rental background checks included sealed records, eviction records that weren’t updated, TransUnion settlement says

The TransUnion Rental Screening Solutions report issues included repeating eviction records in a report, including sealed records and not updating records following an eviction proceeding.

TransUnion is also accused of withholding the names of third parties who provided inaccurate information.

“Consumers struggling to find housing shouldn’t be shut out by tenant screening reports that are ridden with errors and based on data from secret sources,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection..

Late last year, TransUnion sent letters to consumers disclosing a data breach that exposed personal and financial information.

Have you had issues securing housing after TransUnion used outdated information against you? Let us know in the comments.

Read About More Class Action Lawsuits & Class Action Settlements:

• Bank of America class action claims company canceled automatic bill payments without notification
• American Express class action alleges company submits hard credit inquiries despite contrary representations
• Bank of America class action claims company refuses to pay sign-up bonuses to credit card applicants
• Proposed Credit Card Competition Act to reduce restaurant swipe fees