CFPB Sues TransUnion, Sr Exec John Danaher, Alleging History of Deceptive Marketing

The Consumer Financial Protection Bureau (CFPB) on Tuesday (April 12) filed a lawsuit against TransUnion, two of its subsidiaries and longtime executive John Danaher for violating a 2017 law enforcement order related to alleged deceptive marketing on credit scores and credit products.

TransUnion “continued its unlawful behavior, disregarded the order’s requirements and continued employing deceitful digital dark patterns to profit from customers,” according to the CFPB complaint, which says TransUnion also violated additional consumer financial protection laws.

“TransUnion is an out-of-control repeat offender that believes it is above the law,” CFPB Director Rohit Chopra said in the bureau’s press release. “I am concerned that TransUnion’s leadership is either unwilling or incapable of operating its businesses lawfully.”

TransUnion collects information on 200 million individuals and the company claims to profile “nearly every credit-active consumer in the United States.” The company reported $3 billion in revenue for 2021.

“Credit reporting agencies are entrusted with generating accurate credit reports to help banks and other lenders determine an applicant’s creditworthiness,” the CFPB press release says. “However, based on the nearly 150,000 consumer complaints about TransUnion that the Bureau received in 2021 alone, TransUnion has struggled to maintain that trust.”

The bureau’s complaint says TransUnion and Danaher “flouted a formal law enforcement order” by continuing to “engage in deceptive conduct in its marketing and sale of credit-related products.” The company also “deceived customers through digital dark patterns” and “cheated customers through the marketing and sale of its credit-related products.”

The CFPB is pushing for “monetary relief for consumers, such as restitution or return of funds, disgorgement or compensation for unjust gains, injunctive relief, and civil money penalties.

Related: 70% of Complaints Filed With the CFPB Are About Credit or Consumer Reporting

Earlier this month, the CFPB published its 100-page semi-annual report, detailing what the agency has done for most of the last year, including its advocacy efforts to help consumers, the enforcement actions taken against companies and individuals, the data generated for different industries and proposed rulemaking.