The credit reporting business Teletrack, Inc. has agreed to settle charges that involve a violation of the Fair Credit Reporting Act (FCRA), but the settlement comes at an expensive price. According to the Federal Trade Commission, Teletrack has agreed to pay $1.8 million to settle the complaint. The settlement also requires the company to furnish credit reports only to those people that it has reason to believe have a permissible purpose to receive them.
Teletrack's alleged FCRA violations come after FTC accused the company of creating a marketing database of information that was gathered through credit reports and then selling that information to marketers. The information that was allegedly sold included lists of consumers who had applied for non-traditional credit products. The information sold violated FCRA because it contained information consumers' creditworthiness.