Consumer Reporting Agency for Casinos Settles FTC Charges

A nationwide specialty consumer reporting agency that provides casinos with credit reports that are used to assess customers’ eligibility for credit and check cashing has agreed to settle Federal Trade Commission charges that it violated the Fair Credit Reporting Act (FCRA). The settlement requires the company to pay a $150,000 civil penalty and bars future violations of the FCRA.

According to the FTC, Central Credit LLC failed to inform casinos that use its credit reports of their legal obligations under the FCRA, such as providing adverse-action notices to consumers when credit is declined or a check not cashed, and failed to inform companies that furnish information for credit reports of their legal obligation to provide accurate information about consumers. Central Credit also failed to inform consumers of their rights under FCRA, such as the right to obtain a free annual credit report. Finally, the company failed to establish a streamlined process for consumers to request free annual credit reports, including publishing a toll-free number and providing clear instructions for requesting a free report.

In addition to imposing the civil penalty, the settlement requires Central Credit, a wholly owned subsidiary of Global Cash Access, Inc., to provide FCRA-required notices to users and furnishers of consumer report information, to provide a “Summary of Rights” to consumers who obtain reports from Central Credit, and to have a streamlined process for consumers to obtain a free annual credit report via a toll-free number.

The Commission vote to refer the complaint and stipulated final order to the Department of Justice for filing was 4-0. The documents were filed in the U.S. District Court for the District of Nevada.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe”
that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The complaint is not a finding or ruling that the defendants have actually violated the law. Stipulated court orders are for settlement purposes only and do not necessarily constitute an admission by the defendant of a law violation. Stipulated orders are subject to court approval and have the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.