The Smart Team of NOVA® Home Loans

Experian Fined for Misrepresenting Credit Scores

Posted To: MND NewsWire

It wasn’t exactly bait and switch, maybe unlawful substitution is closer to the mark. Whatever, Experian, the credit reporting company, has been handing consumers a line about their credit scoring system and CFPB caught them. The Consumer Financial Protection Bureau (CFPB) announced on Thursday Experian and its subsidiaries have agreed to a $3 million civil penalty for deceiving consumers about its own proprietary brand of credit scores. The company claimed the credit scores it marketed and provided to consumers were used by lenders to make credit decision. CFPB says, in fact, lenders do not use these scores. Credit scores are numerical summaries designed to predict consumer payment behavior in using credit. CFPB states that no single credit score or credit scoring model is used by every lender…(read more)

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Source: Mortgage News Daily

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