Richard Cordray

Equifax, TransUnion fined $23M for misleading ads, tricking customers

Equifax, TransUnion fined $23M for misleading ads, tricking customers

All credit scores are not created equal.

That’s the upshot of federal enforcement actions levied Tuesday against credit bureaus Equifax and TransUnion.

The bureaus will pay penalties of $23.1 million as part of a settlement with the Consumer Financial Protection Bureau, which said the firms misled consumers into paying for credit scores that might be dramatically different from the scores used by lenders.

Mortgage lenders, credit card companies and others generally use the ubiquitous FICO score, calculated by San Jose firm Fair Isaac Corp. But the CFPB alleged that TransUnion and Equifax sold customers their own in-house scores and improperly implied...

19°