Misplaced Pages

#34965

55-408: TransUnion also markets credit reports and other credit and fraud-protection products directly to consumers. Like all credit reporting agencies, the company is required by U.S. law to provide consumers with one free credit report every year. Additionally a growing segment of TransUnion's business is its business offerings that use advanced big data , particularly its deep AI-TLOxp product. TransUnion

110-490: A data breach existing between 1 September 2013 and 16 September 2015. As many as 15 million people who used the company's services, among them customers of American cellular company T-Mobile who had applied for Experian credit checks, may have had their private information exposed. In 2020 it was revealed that Experian had suffered a further data breach, on this occasion in South Africa. Initially, Experian claimed that

165-472: A $ 17.95/month charge for holding a TransUnion account. In March 2015, following a settlement with the New York Attorney-General, TransUnion, along with other credit reporting companies, Experian and Equifax , agreed to help consumers with errors and red flags on credit reports. Under the new settlement, credit-reporting firms are required to use trained employees to respond when a consumer flags

220-549: A Vietnamese national, Hieu Minh Ngo , was charged by the U.S. Department of Justice with attempting to sell personally identifiable information on hundreds of thousands of U.S. residents. This information had been allegedly purchased from Experian subsidiary and data aggregator Court Ventures. However, Ngo testified under oath that the information he had sold to identity thieves had actually been acquired from another hacker based in Russia, and not Experian or Court Ventures. Ngo then resold

275-557: A consumer reporting agency specializing in alternative credit data. In mid-April 2018, TransUnion announced it intended to buy UK-based CallCredit Information Group for $ 1.4 billion, subject to regulatory approval. In December 2021, TransUnion completed the acquisitions of Neustar , initially announced in September 2021 for $ 3.1 billion, and Sontiq, initially announced in October 2021 for $ 638 million. In February 2023, TransUnion announced it

330-412: A credit card may significantly increase an individual's ability to obtain further credit, while privacy issues may prevent a fraud from being exposed. Certain telecommunication companies and their relationship with credit reporting bureaus have enabled fabricated credit files to be created by the exploit of privacy blocks, which deny any third party entity to actual information held by the government. While

385-459: A credit history from scratch in the new country. Therefore, it is usually difficult for immigrants to obtain credit cards and mortgages until after they have worked in the new country with a stable income for several years. Some lenders do take into account credit history from other countries, but this practice is not common. Among credit card companies, American Express can transfer credit cards from one country to another and in this way help start

440-411: A credit history. Adverse credit history , also called sub-prime credit history , non-status credit history , impaired credit history , poor credit history , and bad credit history , is a negative credit rating . A negative credit rating is often considered undesirable to lenders and other extenders of credit for the purposes of loaning money or capital. In the U.S., a consumer's credit history

495-580: A credit report and other sources of information to predict future delinquency. In many countries, when a customer submits an application for credit from a bank , credit card company, or a store, their information is forwarded to a credit bureau . The credit bureau matches the name, address and other identifying information on the credit applicant with information retained by the bureau in its files. The gathered records are then used by lenders to determine an individual's credit worthiness ; that is, determining an individual's ability and track record of repaying

550-475: A debt (income) and willingness (the credit report) as indicated by a history of regular, unmissed payments. These factors help lenders determine whether to extend credit, and on what terms. With the adoption of risk-based pricing on almost all lending in the financial services industry, this report has become even more important since it is usually the sole element used to choose the annual percentage rate (APR), grace period and other contractual obligations of

605-457: A debt. The willingness to repay a debt is indicated by how timely past payments have been made to other lenders. Lenders like to see consumer debt obligations paid regularly and on time, and therefore focus particularly on missed payments and may not, for example, consider an overpayment as an offset for a missed payment. There has been much discussion over the accuracy of the data in consumer reports. In general, industry participants maintain that

SECTION 10

#1733084817035

660-548: A government list of terrorists and other security threats. The plaintiffs' team of attorneys at Francis & Mailman, P.C. partnered with another California-based firm in the class action. Following up on this, in April 2022, the Consumer Financial Protection Bureau (CFPB) said TransUnion is "incapable of operating its businesses lawfully". On 13 October 2017, the website for TransUnion's Central American division

715-535: A mistake on their file. These employees are responsible for communicating with the lender and resolving the dispute. In January 2017, TransUnion was fined $ 5.5 million and ordered to pay $ 17.6 million in restitution, along with Equifax , by the Consumer Financial Protection Bureau (CFPB) . The federal agency fined the companies "for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers". The CFPB also said

770-423: A monthly basis. These reports include the amount each tenant pays, the timeliness of their last payment, and any remaining balance the tenant currently owes. As a result, some companies have started reporting rent payment information to TransUnion. In 2015, TransUnion acquired Trustev, a digital verification company specializing in online fraud for $ 21 million, minus debts. In 2017, TransUnion acquired FactorTrust,

825-486: A proprietary algorithm to uncover relationships between data. TLOxp also allows licensed investigators and law enforcement professionals to access personally identifiable information from credit header data . In 2014, a TransUnion analysis found that reporting rental payment information to credit bureaus can positively affect credit scores. As a result, TransUnion initiated a service called ResidentCredit, making it easy for property owners to report data about their tenants on

880-595: A publicly traded company for the first time, trading under the symbol TRU. TransUnion eventually began to offer products and services for both businesses and consumers. For businesses, TransUnion updated its traditional credit score offering to include trended data that helps predict consumer repayment and debt behavior. This product, referred to as CreditVision, launched in October 2013. Its SmartMove™ service facilitates credit and background checks for landlords. The service also provides credit and background checks for partner companies, such as RentSpree. In September 2013,

935-429: A ransom to not release it, the group N4ughtysecTU claims responsibility. Credit report A credit history is a record of a borrower's responsible repayment of debts. A credit report is a record of the borrower's credit history from a number of sources, including banks, credit card companies, collection agencies, and governments. A borrower's credit score is the result of a mathematical algorithm applied to

990-483: A relatively short period of time can indicate the consumer is in a financially difficult situation. The information in a credit report is sold by credit agencies to organizations that are considering whether to offer credit to individuals or companies. It is also available to other entities with a "permissible purpose", as defined by the Fair Credit Reporting Act. The consequence of a negative credit rating

1045-664: A settlement with the Federal Trade Commission (FTC) over charges that Experian had violated a previous settlement with the FTC. The FTC alleged that ads for the "free credit report" did not adequately disclose that Experian customers would automatically be enrolled in Experian's $ 79.95 credit-monitoring program. In January 2008, Experian announced that it would cut more than 200 jobs at its Nottingham office. Experian shut down its Canadian operations on 14 April 2009. In March 2017,

1100-529: A victim of identity theft, a fraud victim named Sloan filed suit against all three of the US's largest credit agencies. TransUnion and Experian settled out of court for an undisclosed amount. In Sloan v. Equifax , a jury awarded Sloan $ 351,000. "She wrote letters. She called them. They saw the problem. They just didn't fix it," said her attorney, A. Hugo Blankingship III. TransUnion has also been criticized for concealing charges. Many users complained of not being aware of

1155-451: Is a risk, credit scoring offers a standardized way for lenders to assess that risk rapidly and "without prejudice". All credit bureaus also offer credit scoring as a supplemental service. Credit scores assess the likelihood that a borrower will repay a loan or other credit obligation based on factors like their borrowing and repayment history, the types of credit they have taken out and the overall length of their credit history. The higher

SECTION 20

#1733084817035

1210-795: Is available online through http://www.fcac.gc.ca , the site of the Financial Consumer Agency of Canada . Paper copies can also be ordered at no charge for residents of Canada. In some countries, in addition to privately owned credit bureaus, credit records are also maintained by the central bank . Particularly, in Spain , the Central Credit Register is kept by the Bank of Spain . In this country, individuals can obtain their credit reports free of charge by requesting them online or by mail. Credit history usually stays within one country. Even within

1265-444: Is called a negative credit rating or adverse credit history. A consumer's credit score is a number calculated from factors such as the amount of credit outstanding versus how much they owe, their past ability to pay all their bills on time, how long they have had credit, types of credit used and number of inquiries. The three major consumer reporting agencies, Equifax, Experian and TransUnion all sell credit scores to lenders. Fair Isaac

1320-766: Is chiefly regulated by the Fair Credit Reporting Act (FCRA). The Fair and Accurate Credit Transactions Act of 2003, signed into law in 2003, amended the FCRA to require the credit reporting companies to provide consumers with one free copy of their credit report per 12-month period. Like its main competitors, TransUnion and Equifax , Experian markets credit reports directly to consumers. Experian heavily markets its for-profit credit reporting service, FreeCreditReport.com , and all three agencies have been criticised and even sued for selling credit reports that can be obtained at no cost. Its market segmentation tool, Mosaic ,

1375-461: Is compiled into a credit report by credit bureaus or consumer reporting agencies. The data reported to these agencies are primarily provided to them by creditors and includes detailed records of the relationship a person has with the creditor. Detailed account information, including payment history, credit limits, high and low balances, and any aggressive actions taken to recover overdue debts, are all reported regularly (usually monthly). This information

1430-718: Is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index . Experian is a partner in USPS address validation. It is one of the "Big Three" credit-reporting agencies, alongside TransUnion and Equifax . In addition to its credit services, Experian also sells decision analytic and marketing assistance to businesses, including individual fingerprinting and targeting. Its consumer services include online access to credit history and products meant to protect from fraud and identity theft . Like all credit reporting agencies,

1485-403: Is one of the major developers of credit scores used by these consumer reporting agencies. The complete way in which a consumer's FICO score is calculated is complex. One of the factors in a consumer's FICO score is credit checks on their credit history. When a lender requests a credit score, it can cause a small drop in the credit score. That is because, as stated above, a number of inquiries over

1540-406: Is reviewed by a lender to determine whether to approve a loan and on what terms. As credit became more popular, it became more difficult for lenders to evaluate and approve credit card and loan applications in a timely and efficient manner. To address this issue, credit scoring was adopted. A benefit of scoring was that it made credit available to more consumers and at less cost. Credit scoring

1595-556: Is that the consumer credit reporting agencies it governs provide a free copy of the credit reports for any consumer who requests it, once per year. The government of Canada offers a free publication called Understanding Your Credit Report and Credit Score . This publication provides sample credit report and credit score documents with explanations of the notations and codes that are used. It also contains general information on how to build or improve credit history, and how to check for signs that identity theft has occurred. The publication

1650-455: Is the process of using a proprietary mathematical algorithm to create a numerical value that describes an applicant's overall creditworthiness. Scores, frequently based on numbers (ranging from 300–850 for consumers in the United States), statistically analyze a credit history, in comparison to other debtors, and gauge the magnitude of financial risk. Since lending money to a person or company

1705-439: Is typically a reduction in the likelihood that a lender will approve an application for credit under favorable terms, if at all. Interest rates on loans are significantly affected by credit history; the higher the credit rating, the lower the interest, while the lower the credit rating, the higher the interest. The increased interest is used to offset the higher rate of default within the low credit rating group of individuals. In

TransUnion - Misplaced Pages Continue

1760-562: Is used by political parties to identify groups of voters. In the British version there are 15 main groups, broken down into 89 hyperspecific categories, from "corporate chieftains" to "golden empty-nesters" which can be taken down to the level of individual postcodes . It was first used by the Labour Party, but then taken up by the Conservatives in the 2015 General Election campaign. In 2013

1815-404: Is widespread concern that information in credit reports is prone to error. Thus Congress has enacted a series of laws aimed to resolve both the errors and the perception of errors. If a US consumer disputes some information in a credit report, the credit bureau has 30 days to verify the data. Over 70 percent of these consumer disputes are resolved within 14 days and then the consumer is notified of

1870-554: The Consumer Financial Protection Bureau (U.S.) for deceiving customers about the cost of their services. Services advertised as $ 1 were actually billed at $ 200 per year. Experian Experian plc is a multinational data analytics and consumer credit reporting company headquartered in Dublin , Ireland. Experian collects and aggregates information on over 1 billion people and businesses including 235 million individual U.S. consumers and more than 25 million U.S. businesses. It

1925-405: The Fair Credit Reporting Act governs businesses that compile credit reports. These businesses range from the big three credit reporting agencies, Experian , Equifax , TransUnion , to specialty credit reporting agencies that cater to specific clients including payday lenders, utility companies, casinos, landlords, medical service providers, and employers. One Fair Credit Reporting Act requirement

1980-498: The U.S. Consumer Financial Protection Bureau fined Experian $ 3 million for providing invalid credit scores to consumers. In October 2017, Experian acquired Clarity Services, a credit bureau specialising in alternative consumer data. In October 2024, Experian agreed to acquire Brazilian digital fraud prevention provider ClearSale for $ 350 million. In the United States, like the other major credit reporting bureaus, Experian

2035-420: The United States, a creditor is required to give the reasons for denying credit to an applicant immediately and must also provide the name and address of the credit reporting agency who provided data that was used to make the decision. Astute consumers and criminal minded people have been able to identify and exploit vulnerabilities in the credit scoring systems to obtain credit. For example, previous ownership of

2090-530: The United States, insurance, housing, and employment can be denied based on a negative credit rating. A 2013 survey showed that employer credit checks on job seekers were preventing them from entering the workforce. Results indicated at the time that one in four unemployed Americans have been required to go through a credit check when applying for a job. Federal regulations require employers to receive permission from job candidates before running credit checks, but it could be difficult to enforce employer disclosure as to

2145-606: The companies "lured consumers into costly recurring payments for credit-related products with false promises". Credit bureaus had the most complaints of all companies filed with the CFPB by consumers in 2018, with 34% of all complaints directed at TransUnion, Equifax, and Experian that year. In June 2017, a California jury ruled against TransUnion with a $ 60 million verdict in the largest Fair Credit Reporting Act (FCRA) verdict in history. The San Francisco federal court jury awarded $ 60 million in damages to consumers who were falsely reported on

2200-512: The company acquired eScan Data Systems of Austin, Texas , to provide post-service eligibility determination support to hospitals and healthcare systems. The technology was integrated into TransUnion's ClearIQ platform, which tracks patients demographic and insurance related information to support benefit verification. In November 2013, TransUnion acquired TLO LLC, a company that leverages data in support of its investigative and risk management tools. Its TLOxp technology aggregates data sets and uses

2255-516: The company is required by U.S. law to provide consumers with one free credit report every year. The company has its origins in Credit Data Corporation, a business which was acquired by TRW Inc. in 1968, and subsequently renamed TRW Information Systems and Services Inc. In November 1996, TRW sold the unit, as Experian, to Bain Capital and Thomas H. Lee Partners . Just one month later,

TransUnion - Misplaced Pages Continue

2310-445: The credit card or loan. Credit scores vary from one scoring model to another, but in general the FICO scoring system is the standard in U.S., Canada and other global areas. The factors are similar and may include: Consumers can typically check their credit history by requesting credit reports from credit agencies and demanding correction of information if necessary. In the United States,

2365-627: The credit reporting system is designed to protect both lenders and borrowers, there are loopholes which can allow opportunistic individuals to abuse the system. A few of the motivations and techniques for credit abuse include churning , rapidfire credit applications, repetitive credit checks, selective credit freezes, applications for small business rather than personal credit, piggybacking and hacking, as it happened with Equifax in April and September 2017. Additionally, fraud can be committed on consumers by credit reporting agencies themselves. In 2013, Equifax and TransUnion were fined $ 23.3 million by

2420-465: The data in credit reports is very accurate. The credit bureaus point to their own study of 52 million credit reports to highlight that the data in reports is very accurate. The Consumer Data Industry Association testified before the United States Congress that less than two percent of those reports that resulted in a consumer dispute had data deleted because it was in error. Nonetheless, there

2475-492: The incident had been contained but subsequently this was shown to be untrue. Data on 24 million South Africans was leaked, as well as on nearly 800,000 businesses. Of these, 24,838 had financial details leaked. In January 2021 a new leak was revealed in Brazil, with the source being linked to Experian's Brazilian subsidiary Serasa Experian. The breach resulted in data of 220 million citizens (including some already dead) being sold in

2530-573: The information he acquired from the Russian hacker through the identity fraud enabling websites Superget.info and Findget.me. The information offered for anonymous sale on these websites included individual's name, address, Social Security number , date of birth, place of work, duration of work, state driver's licence number, mother's maiden name, bank account number (s), bank routing number (s), email account (s) and other account passwords. On 1 October 2015 Experian announced that they had discovered

2585-411: The reason for job denial. Note that it is not the credit reporting agencies that decide whether a credit history is "adverse". It is the individual lender or creditor which makes that decision; each lender has its own policy on what scores fall within their guidelines. The specific scores that fall within a lender's guidelines are most often not disclosed to the applicant due to competitive reasons . In

2640-450: The resolution. The Federal Trade Commission states that one large credit bureau notes 95 percent of those who dispute an item seem satisfied with the outcome. The other factor in determining whether a lender will provide a consumer credit or a loan is dependent on income. The higher the income, all other things being equal, the more credit the consumer can access. However, lenders make credit granting decisions based on both ability to repay

2695-570: The same credit card network or within the same multinational credit bureau, information is not shared between different countries. For example, Equifax Canada does not share credit information with Equifax in the United States. If a person has been living in Canada for many years and then moves to USA, when they apply for credit in the U.S., they may not be approved because of a lack of U.S. credit history, even if they had an excellent credit rating in their home country. An immigrant may end up establishing

2750-422: The score, the better the credit history and the higher the probability that the loan will be repaid on time. When creditors report an excessive number of late payments, or trouble with collecting payments, the score suffers. Similarly, when adverse judgments and collection agency activity are reported, the score decreases even more. Repeated delinquencies or public record entries can lower the score and trigger what

2805-558: The two firms sold Experian to The Great Universal Stores Limited in Manchester , England, a retail conglomerate with millions of customers paying for goods on credit (later renamed GUS ). GUS merged its own credit-information business, CCN, which at the time was the largest credit-service company in the UK, into Experian. In October 2006, Experian was demerged from GUS and listed on the London Stock Exchange . In August 2005, Experian accepted

SECTION 50

#1733084817035

2860-436: The web. This is probably the most severe data breach in history, as it includes names, social security numbers, income tax declaration forms, addresses and other private information on nearly all Brazilian citizens. Experian claims there's no evidence that its systems have been compromised, but this lack of evidence doesn't explain it being the only probable source for the data. According to a Brazilian consumer rights foundation,

2915-672: Was originally formed in 1968 as a holding company for Union Tank Car Company , making TransUnion a descendant of Standard Oil through Union Tank Car Company. The following year, it acquired the Credit Bureau of Cook County, which possessed and maintained 3.6 million credit accounts. In 1981, a Chicago-based holding company, The Marmon Group , acquired TransUnion for approximately $ 688 million. In 2010, Goldman Sachs Capital Partners and Advent International acquired it from Madison Dearborn Partners . In 2014, TransUnion acquired Hank Asher 's data company TLO. On June 25, 2015, TransUnion became

2970-587: Was rebranding its "thousands of existing B2B products into seven business lines." These include: TruAudience, TruValidate, TruContact (all based on former offerings from Neustar), TruVision, TruIQ, TruEmpower, and TruLookup. In 2003, Judy Thomas of Klamath Falls, Oregon , was awarded $ 5.3 million in a successful lawsuit against TransUnion. The award was made on the grounds that it took her six years to get TransUnion to remove incorrect information in her credit report. In 2006, after spending two years trying to correct erroneous credit information that resulted from being

3025-416: Was reported to have been redirecting visitors to websites that attempted drive-by downloads of malware disguised as Adobe Flash updates. The attack had been performed by hijacking third-party analytics JavaScript from Digital River brand FireClick. On 17 March 2022, TransUnion South Africa disclosed that hackers breached one of their servers and allegedly stole data of 54 million customers, demanding

#34965