Equifax paid restitution and penalty for deceiving consumers about credit scores and recurring subscriptions

Summary

The Consumer Financial Protection Bureau took action against Equifax in January 2017 for deceiving consumers about the usefulness and actual cost of credit scores and other credit-related products. The CFPB found that Equifax represented to consumers that credit scores it sold were the same scores lenders typically used when making credit decisions. According to the Bureau, the scores marketed to consumers were not typically used by lenders for those decisions. The CFPB also found problems with Equifax's marketing of credit-related subscription products. Consumers were offered trial periods or other introductory offers but could subsequently be enrolled in recurring subscription programs if they did not cancel. The Bureau found that the recurring nature and cost of these subscriptions were not sufficiently clearly disclosed to consumers. Equifax was ordered to provide almost $3.8 million in restitution to affected consumers and pay a $2.5 million civil penalty. Primary source: Consumer Financial Protection Bureau — Equifax enforcement action: https://www.consumerfinance.gov/enforcement/actions/equifax-inc-and-equifax-consumer-services-llc/