CFPB Sues TransUnion Over 2017 Consent Order

Case: Consumer Financial Protection Bureau v. TransUnion
Source: Consumer Financial Protection Bureau
Citation: No. 1:22-cv-01880 (N.D. Ill., filed Apr. 12, 2022)
Decided: April 12, 2022
Bottom line: The lawsuit ended without findings, but the FCRA rule that ads on annualcreditreport.com must not undermine free reports still applies, and you never have to buy anything to get them.

Background

The FCRA entitles every consumer to a free file disclosure from each nationwide credit bureau, requested through a single centralized source, annualcreditreport.com. Regulation V, which implements the FCRA, says communications and advertising on that site must not “interfere with, detract from, contradict, or otherwise undermine the purpose” of the site, and gives as an example materials that falsely suggest an add-on such as a credit score or credit monitoring is free. 12 C.F.R. § 1022.136.

In January 2017, the CFPB entered a consent order against TransUnion and two subsidiaries over the marketing of credit scores and credit products. According to the CFPB, the order required more than $13.9 million in restitution and $3 million in civil penalties, and it imposed conduct rules, including clear disclosure of trial-offer terms, an affirmative checkbox for enrollment, and a simple way to cancel.

What the government alleged

On April 12, 2022, the CFPB filed suit in the U.S. District Court for the Northern District of Illinois against TransUnion, Trans Union LLC, TransUnion Interactive, Inc., and John T. Danaher, the longtime, and by then former, president of TransUnion Interactive. The complaint alleged that the companies “have violated the Order since the day it went into effect.” Among its allegations:

The companies failed to implement core order requirements, including the affirmative-selection checkbox for trial offers, and kept enrolling consumers in recurring paid credit-monitoring subscriptions in ways that misled them.
Cancellation remained “difficult, costly, confusing or time-consuming,” with an online process that repeatedly steered consumers back toward staying enrolled. The complaint alleged thousands of refund requests and hundreds of complaints from consumers unable to cancel online.
Advertisements placed on consumers’ free file disclosures through annualcreditreport.com falsely suggested a credit score was part of the free report and diverted consumers into paid subscriptions, in violation of Regulation V.
The companies failed to obtain proper authorization for recurring debits, in violation of the Electronic Fund Transfer Act and Regulation E.
Danaher had authority and responsibility to ensure compliance and failed to do so.

The CFPB sought injunctive relief, refunds, restitution, disgorgement, and civil penalties. TransUnion publicly called the claims meritless and said it had complied with the order.

What happened next matters. The CFPB amended its complaint in May 2023. On February 28, 2025, after the change in administration, the parties filed a joint stipulation dismissing the case against all defendants with prejudice, each side bearing its own costs. No court made findings on the allegations.

Our take

The complaint is an allegation, and the case ended without a ruling, so no one should treat its claims as proven. TransUnion disputed them throughout. Still, the case is a useful window into how credit bureaus make money directly from consumers and why regulators care about it. The free annual report exists so people can check for errors without being sold anything. When the path to that report is cluttered with offers that look free but are not, the FCRA’s design is undercut.

The dismissal with prejudice means the government cannot refile these claims. It does not mean the conduct rules disappeared from the law. Regulation V’s restrictions on annualcreditreport.com advertising remain in force, and private consumers keep their own FCRA rights.

What it means if your report is wrong

Get your free reports through annualcreditreport.com and do not enter payment information to see them. If you find an error, dispute it with each bureau in writing, explain what is wrong, attach proof, and keep copies. You do not need to buy credit monitoring or any other product to dispute an error, and a bureau must investigate a proper dispute for free. If you were enrolled in a subscription you did not agree to, ask for cancellation and a refund in writing and consider filing a complaint with the CFPB. If an error on your report stays after you dispute it, a free case review can assess your options, and there is no fee unless we win.

Sources

Primary

Commentary we reviewed

News: CFPB sues TransUnion for duping consumers with 'dark patterns' (HousingWire)

Updated November 1, 2026. "Our take" is the firm's opinion. This page is general information, not legal advice, and later decisions may change the law.