The Federal Trade Commission has given final approval to a consent agreement with Equifax Credit Information Services, Inc., a subsidiary of Equifax Inc., settling charges that it violated the Fair Credit Reporting Act (FCRA) by failing to assure the maximum possible accuracy of the consumer credit information it compiles and sells nationwide to credit grantors, employers, and others. The Commission's action makes the consent order provisions binding on the respondents.

The final order requires Equifax to maintain reasonable procedures to assure maximum possible accuracy of the information contained in its consumer reports. Specifically, when a consumer provides Equifax with documentation confirming the consumer's version of a dispute, Equifax is required to accept that version unless it has reason to doubt the authenticity of the document.

Equifax also is required to reinvestigate, within 30 days, information disputed by a consumer in his or her credit report. If Equifax does not verify the information within that time period, it must delete the information until it is verified. The order requires Equifax to implement procedures to assure that no derogatory information which has been deleted after being disputed by the consumer reappears on the consumer's credit report unless (1) the information has been reverified, and (2) Equifax advises the consumer in writing that the information has been reinserted in the credit file.

Equifax also is required to limit the furnishing of consumer reports to those with a permissible purpose under the FCRA. Concerning the practice of compiling information from consumers' reports for specified credit-related characteristics, a process known as prescreening, the settlement mandates that Equifax require purchasers of these prescreened lists to make a firm offer of credit to every person who appears on the list.

The order also requires Equifax -- within 180 days after the order becomes final -- to file a written report with the FTC detailing the manner in which it has complied with the provisions of the settlement, and submit for FTC approval, a methodology by which changes to its computer system will be measured. Finally, the order contains additional recordkeeping requirements designed to help the FTC monitor Equifax's compliance with the order.

The consent agreement was announced for a public-comment period on Feb. 8. The Commission vote to issue it in final form occurred on August 14 and was 4-0, with Chairman Robert Pitofsky not participating.

NOTE: A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000.

A news release summarizing the complaint and consent agreement was issued at the time the Commission accepted the consent agreement for public comment. Copies of these documents and the final order are available from the FTC's Public Reference Branch, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-326-2222; TTY for the hearing impaired 1-866-653-4261. To find out the latest FTC news as it is announced, call the FTC's NewsPhone recording at 202-326-2710. FTC news releases and other materials also are available on the Internet at the FTC's World Wide Web Site at: http://www.ftc.gov

 

(FTC Docket No. C-3611)
(FTC File No. 902 3149)