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Major credit bureau sued for deceiving consumers into recurring payments

TransUnion is being sued for deceptive practices.

credit score displayed on phone screen

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The Consumer Financial Protection Bureau is suing TransUnion

The Consumer Financial Protection Bureau (CFPB) is suing TransUnion because they misled and tricked customers into paying recurring fees that they didn’t agree to. Read more about it here.

TransUnion used “digital dark patterns” in order to get customers unintentionally sign up for subscriptions and make it difficult to cancel the fees.

Most cases unfolded after a consumer requests a free credit report. Consumers are legally entitled to these but were asked to add a credit card. From there, TransUnion “allegedly used deceptive buttons and confusing interfaces” to trick customers into recurring payments.

In 2021, there were about 150,000 consumer complaints about TransUnion to the CFPB.

The CFPB settled similar charges against TransUnion in 2017. They agreed to pay $13.9 million to impacted consumers and to follow a law enforcement order to get the  deceptive practices to end.

According to the CFPB, TransUnion has “violated the order since the day it went into effect.”

John Danaher is the president of TransUnion’s consumer interactive division from 2004 to 2021. He was named a defendant in the lawsuit.

Danaher allegedly played a “key role in instructing employees to implement deceptive interfaces.” This was done in violation of the 2017 order.

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What’s next?

TransUnion made a statement dismissing the charges as “meritless.”

The CFPB is seeking refunds with interest for consumers tricked into paying. The CFPB is urging consumers with in formation about TransUnion’s misconduct to reach out. You can email [email protected] or call (855) 695-7974.


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