A credit-reporting agency whose “inadequate procedures” led to the alleged sale of sensitive data on millions of consumers to companies that “should not have received them” was fined $393,000 as part of a settlement with the Federal Trade Commission, the commission announced Wednesday.
The FTC said that Equifax Information Services LLC violated federal law when it sold more than 17,000 lists of people behind on mortgage payments to Direct Lending Source, Inc. and other companies. DLS resold them to companies that sell loan modification and debt relief services, some of whom “have been the subject of law enforcement investigations,” the FTC said.
DLS was fined $1.2 million. Both companies admitted no wrongdoing.
More from Star Tribune
More from Whistleblower
The Whistleblower column and blog are shutting down, but our commitment remains to investigating tips from readers.
A Baltimore couple and their company were ordered to pay back $616,000 to Spanish-speaking immigrants for immigration services that they were neither qualified nor authorized to provide, the Federal Trade Commission announced last week.
A company that labeled millions of Facebook users as a "jerk" or "not a jerk" is facing federal scrutiny after the agency said it improperly obtained information to create user profiles.
CenterPoint agreed last week to pay at least $192,500 to settle a lawsuit filed by the City of Minneapolis and various insurance companies after a gas explosion near a south Minneapolis Cub Foods in 2011.
A company accused of "mortgage scams" spent at least $2 million for a direct-mail campaign aimed at Minnesota veterans, according to the Minnesota Department of Commerce.