TELETRACK TO PAY $1.8 MILLION TO SETTLE FCRA CLAIMS
Teletrack, Inc. has agreed to pay $1.8 million to settle Federal Trade Commission’s (FTC) charges that it violated the Fair Credit Reporting Act (FCRA). The FTC alleged Teletrack sold consumers’ credit reports to marketers without a permissible purpose.
According to the FTC complaint, Teletrack sold consumer credit reports to payday lenders, rental stores, and sub-prime car finance companies. These types of businesses primarily target low-income consumers or consumers with poor credit ratings. In turn, the businesses would use the credit reports from Teletrack to make the decision whether to extend credit and if so, on what terms.
The complaint alleged Teletrack built a database from information it gathered from its credit reporting business. Teletrack then sold the consumer information in its to marketers. Teletrack sold its customers lists of consumers who tried to get payday loans. Teletrack’s customers would then use the list to target market potential customers for their payday loan services.
The FTC claims the lists created by Teletrack are credit reports as defined by the Fair Credit Reporting Act (FCRA) because they contained information about a consumer’s creditworthiness. The FTC charges that Teletrack violated the FCRA because it sold credit reports for marketing purposes , which is against the law to sell a consumer report without a “permissible purpose.”
The settlement order requires Teletrack to pay a civil penalty of $1.8 million, and contains reporting and record-keeping requirements to ensure the company’s compliance with the decree. The complaint was filed by the Department of Justice in U.S. District Court for the Northern District of Georgia on June 24, 2011. The proposed settlement order is subject to court approval.
HAVE YOU BEEN TURNED DOWN FOR AN AUTO LOAN OR PAYDAY LOAN BECAUSE OF YOUR CREDIT REPORT? HAVE YOU ORDERED YOUR FREE CREDIT REPORT DUE TO THE CREDIT DENIAL? CONTACT CREDIT REPORT LAWYER MICAH ADKINS FOR A FREE CONSULTATION AND INFORMATION ABOUT HOW YOU CAN OBTAIN A FREE CREDIT REPORT. CALL US 24/7 AT 1-800-263-9091.
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