Experian paid $1 million after FTC charged it with blocking consumer access to credit-report assistance

Summary

The Federal Trade Commission and U.S. Department of Justice brought an enforcement action against Experian Information Solutions in 2000 over alleged violations of the Fair Credit Reporting Act involving consumers' ability to contact the credit bureau about their credit reports. Federal law required nationwide consumer reporting agencies to maintain a toll-free telephone number through which personnel were accessible to consumers during normal business hours. According to the FTC, Experian failed to provide the level of access required by law. The government alleged that since September 1997 more than one million calls to Experian's dedicated toll-free numbers received either a busy signal or a message telling consumers to call back because all representatives were busy. The complaint also alleged that some consumers who succeeded in reaching Experian experienced unreasonably long hold times while attempting to speak with company personnel. These telephone lines were important because consumers used them to ask questions about their credit reports and dispute information they believed was inaccurate. The government alleged that Experian committed knowing violations constituting a pattern or practice of violations of the Fair Credit Reporting Act. Experian agreed to pay a $1 million civil penalty. The settlement also imposed performance requirements designed to ensure that consumers could actually reach Experian personnel. These included standards concerning blocked-call rates and average hold times. The enforcement action was part of coordinated FTC cases against the three major U.S. credit-reporting agencies, but Experian's $1 million penalty was specifically attributable to Experian. Primary sources: Federal Trade Commission — Nation's Big Three Consumer Reporting Agencies Agree to Pay $2.5 Million: https://www.ftc.gov/news-events/news/press-releases/2000/01/nations-big-three-consumer-reporting-agencies-agree-pay-25-million-settle-ftc-charges-violating-fair FTC / United States complaint against Experian Information Solutions: https://www.ftc.gov/sites/default/files/documents/cases/2000/01/experiancmp.htm