The Federal Trade Commission has reached a $1.8 million settlement with Teletrack, Inc., for alleged violations of the Fair Credit Reporting Act (FCRA). According to a press release issued by the FTC, the company sells consumer credit reports to businesses that typically extend loans to financially distressed consumers. Where the Teletrack crossed the line, though, was when it sold information in its database to marketers who wanted to target this demographic. According to the FTC, Teletrack’s “marketing lists” were “credit reports under the FCRA because they contained information about a consumer’s creditworthiness.”
Bureau of Consumer Protection Director David Vladeck noted, “The FCRA says a credit reporting agency like Teletrack can’t sell a consumer’s sensitive credit report information for mere sales pitches.”
The proposed settlement is subject to court approval.