Regulators Slap TransUnion with $23 Million Fine for Illegal Rental Background Checks and Credit Reporting

The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) have taken action against TransUnion, a rental screening subsidiary, for violating the Fair Credit Reporting Act. TransUnion failed to ensure the accuracy of rental background checks used by landlords and withheld the names of third parties providing inaccurate information. The CFPB and FTC are seeking a court order for TransUnion to pay $15 million in penalties and make improvements to its reporting practices. Additionally, the CFPB is ordering TransUnion to pay $8 million for misleading consumers about security freezes and locks on credit reports. TransUnion also failed to protect active-duty military members from pre-screened solicitation lists.