Credit Agencies Charged With Violations

Your Credit • CreditReport.com • Free Credit Reports • Equifax • Experian • Trans Union • Consumerinfo • Freecreditreports.com • Certegy • Chexsystems --- News • Feds Spoof Bogus Credit Report Offers • FreeCreditReport.Com Is Far From "Free" • Equifax Settles Consumer Protection Charges in Indiana • Washington Improves Credit Freeze Law • Should You Place A Freeze On Your Credit Report? • How Are You at Managing Your Credit Score? • Consumer Understanding of Credit Scores Remains Poor • TransUnion to Provide Credit Scores to Millions • Class Actions Challenge LifeLock • FreeCreditReport.com Can Get Expensive • Children Becoming Prime Identity Theft Targets • Study: Seniors Not Familiar With Credit Freezes • Feds Propose New Rules for Credit Bureaus • Experian To Offer Credit Freezes To Consumers • Two Credit Bureaus Offer Consumers Credit Freeze in 50 States • No 'Free' Lunch on Credit Report Sites • Insurer Unlawfully Poached Consumers' Credit Reports • ConsumerInfo.Com Settles FTC Charges • Rep. Frank Promises Hearings On Credit Bureaus • PayPal, Equifax Team Up To Offer "Free" Credit Monitoring • Free Credit Reports Available Nationwide Starting Sept. 1 • Marketer of "Free Credit Reports" Settles FTC Charges • Credit Bureaus: Biggest Threat to Your Identity • Escape From Plastic Prison • Experian, ConsumerInfo.Com Named in Class Action Suit • Free Annual Credit Reports Required by Next Year • Big 3 Charged • Trans Union Ordered to Stop Selling Consumer Data • Equifax in Trouble Again

WASHINGTON, Jan. 13, 2000 -- The nation's three largest consumer credit reporting agencies have agreed to pay $2.5 million to settle charges that they failed to consistently answer consumer calls on their toll-free lines during office hours.

Equifax, Trans union and Experian agreed to pay monetary settlements and to staff up their call centers so that their blocked call rate is no more than 10 percent and the average holding time is no greater than three minutes, 30 seconds.

The Federal Trade Commission brought the action against the companies under the Fair Credit Reporting Act (FCRA).

The FCRA is intended to ensure that consumers are able to resolve inaccuracies in their credit reports. It requires that the credit bureaus operate toll-free numbers accessible to consumers during normal business hours.

"The reality is that consumers never got the access that the law guarantees," said Jodie Bernstein, Director of the FTC's Bureau of Consumer Protection. "These cases demonstrate in no uncertain terms that it's time for Equifax, Experian and Trans Union to pick up the phone and meet their obligations to consumers."

The FTC's complaints against Trans Union and Experian charge that since September 1997, more than one million calls to their toll-free numbers were met with a busy signal or a recorded message. The complaint against Equifax is similar, saying hundreds of thousands of calls went unanswered.

The complaint also charges that consumers endured "unreasonable" periods of hold, trying to speak to someone about their credit records.

The companies are also accused of purposely blocking calls from certain locations and area codes.

Back to the top  |News | Credit Information