Experian fined $3 million for issuing misleading "educational" credit scores
In March 2017, Experian agreed to pay a $3 million fine to settle a complaint brought by the Consumer Financial Protection Bureau that until 2014 the company had provided consumers with "educational" credit scores that were different from the FICO scores actually provided to credit card issues, mortgage lenders, and other financial services. The reason is that the credit bureaus must pay San Jose-based Fair Isaac Corp to calculate FICO scores. Although Experian did disclose that the educational scores were not those used by lenders, CFPB argued that the warning was not sufficiently prominent. Earlier, the two other leading credit bureaus, Equifax and Trans Union, were fined $17.6 million and $5.5 million for the same behaviour.
Writer: James Koren
Publication: L.A. Times