FILE COP~ 

IN THE UNITED STATES DISTRICT COURT 

FOR THE NORTHERN DISTRICT OF GEORGIA 

UNITED STATES OF AMERICA 

Plaintiff, 

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) 

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) Civil Action No. 

FILED IN CLERK'S OFFICE 

U.S.D.C. - Atlanta 

JUN 24 l011 

v. 

) 

) 

) 

) 

) 

) 

) 

1 11· CV - 2060 

TELETRACK, INC., 

a corporation, 

Defendant. 

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COMPLAINT FOR CIVIL PENAL TIES, INJUNCTIVE, AND OTHER 

EQUITABLE RELIEF 

Plaintiff, the United States of America, acting upon notification and 

authorization to the Attorney General by the Federal Trade Commission ("FTC" or 

"Commission"), for its Complaint alleges that: 

1. Plaintiff brings this action under sections 5(a), 13(b), and 16(a) of the 

Federal Trade Commission Act ("FTC Act"), 15 U.S.C. §§ 45(a), 53(b), and 56(a); 

and section 621(a) of the Fair Credit Reporting Act ("FCRA"), 15 U.S.C. 

§ 1681 s( a), to obtain monetary civil penalties, and injunctive or other relief from 

Defendant for engaging in violations of the FCRA, 15 U.S.C. §§1681-1681x. 
JURISDICTION AND VENUE 

.2. This Court has subject matter jurisdiction pursuant to 28 U.S.C. 

§§ 1331, 1337(a), 1345, and 1355, and 15 U.S.C. §§ 45(a), 53(b), 56(a), and 1681s. 

3. Venue in the United States District Court for the Northern District of 

Georgia is proper under 15 U.S.C. § 53(b) and under 28 U.S.C. §§ 1391(b)-(c) and 

1395(a). 

PLAINTIFF 

4. This action is brought by the United States of America on behalf of 

the Federal Trade Commission. The Commission is an independent agency of the 

United States government given statutory authority and responsibility by, inter 

alia, the FTC Act, as amended, 15 U.S.C. §§ 41-58, and the FCRA, 15 U.S.C. §§ 

1681-1681x. The Commission is charged, inter alia, with enforcing Section 5(a) 

of the FTC Act, 15 U.S.C. § 45(a), which prohibits unfair and deceptive acts or 

practices in or affecting commerce; and the FCRA, which imposes duties upon 

consumer reporting agencies. 

DEFENDANT 

5. Defendant Teletrack, Inc. ("Teletrack" or "Defendant") is a Georgia 

corporation with its principal place of business at 5550-A Peachtree Parkway, 

Suite 600, Norcross, GA 30092. Defendant transacts or has transacted business in 

this district. 

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THE FAIR CREDIT REPORTING ACT 

6. The FCRA was enacted in 1970, became effective on April 25, 

1971, and has been in force since that date. The Fair and Accurate Credit 

Transactions Act amended the FCRA in December 2003. 

7. Section 621 of the FCRA, 15 U.S.C. § 1681s, authorizes the 

Commission to use all of its functions and powers under the FTC Act to enforce 

compliance with the FCRA by all persons subject thereto except to the extent that 

enforcement specifically is committed to some other governmental agency, 

irrespective of whether the person is engaged in commerce or meets any other 

jurisdictional tests set forth by the FTC Act. 

8. Teletrack is now and has been a "consumer reporting agency" as that 

term is defined in section 603(t) of the FCRA, 15 U.S.C. §1681a(t). That section 

defines a "consumer reporting agency" as 

any person which, for monetary fees, dues, or on a 

cooperative nonprofit basis, regularly engages in 

whole or in part in the practice of assembling or 

evaluating consumer credit information or other 

information on consumers for the purpose of 

furnishing consumer reports to third parties, and 

which uses any means or facility of interstate 

commerce for the purpose of preparing or 

furnishing consumer reports. 

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Teletrack regularly sells in interstate commerce information on consumers 

that it assembles for the purpose offumishing consumer reports to third parties, as 

described further below. 

DEFENDANT'S BUSINESS PRACTICES 

9. Teletrack sells consumer reports and other services to businesses that 

primarily serve non-traditional credit consumers, such as payday lenders, rental 

purchase stores, and non-prime auto lenders. Teletrack's clients use these reports 

to make decisions about whether and on what terms to provide credit to 

consumers. 

10. . When requesting consumer reports from Teletrack, its clients provide 

Teletrack with personal information about consumers seeking to obtain credit, 

including but not limited to, name, home address, Social Security number, home 

phone number, name of employer, employer phone number, date of birth, email 

address, and driver's license state and number. 

11. In addition to providing its clients with consumer reports based on the 

information described in paragraph 10, Teletrack adds the consumer's name, 

address, telephone number, date of birth, employer name, and employer telephone 

number, along with the fact that there has been a credit inquiry, into a marketing 

database. 

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12. Using the information from this marketing database, Teletrack sells 

to third parties lists of the names and addresses of consumers on whom there has 

been a credit inquiry by one of Teletrack's clients. For example, Teletrack sells 

lists of the names and addresses of consumers who sought payday loans from its 

storefront (as opposed to online) payday lender clients. 

13. The marketing lists Teletrack sells are "consumer reports" as defined 

in section 603( d) of the FCRA, 15 U.S.C. § 1681 a( d). That section defines a 

"consumer report" as 

any written, oral, or other communication of any 

information by a consumer reporting agency 

bearing on a consumer's credit worthiness, credit 

standing, credit capacity, character, general 

reputation, personal characteristics, or mode of 

living which is used or expected to be used or 

collected in whole or in part for the purpose of 

serving as a factor in establishing the consumer's 

eligibility for (A) credit or insurance to be used 

primarily for personal, family, or household 

purposes; (B) employment purposes; or (C) any 

other purpose authorized under section 604. 

Teletrack's marketing lists contain the names of consumers who were 

selected on the basis of certain credit inquiries, which bear on, among other things, 

a consumer's credit worthiness and are often used as a factor in determining a 

consumer's eligibility for credit. 

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14. Section 604 of the FCRA, 15 U.S.C. §1681b, prohibits consumer 

reporting agencies from furnishing consumer reports to third parties except for 

certain enumerated "permissible purposes." Since at least 2007, in multiple 

instances, Teletrack has furnished consumer reports to third parties for the purpose 

of marketing, which is not a permissible purpose under the FCRA. 

VIOLATIONS OF THE FAIR CREDIT REPORTING ACT 

15. As described in Paragraphs 9 through 14, in multiple instances, 

Teletrack furnished consumer reports to persons who did not have a permissible 

purpose to obtain them. 

16. By and through the acts and practices described in Paragraph 15 

above, Teletrackhas violated section 604 of the FCRA, 15 U.S.C. § 1681b. 

17. Pursuant to section 621(a)(1) of the FCRA, 15 U.S.C. § 1681s(a)(1), 

the acts and practices alleged in Paragraph 15 also constitute unfair or deceptive 

acts or practices in violation of section 5(a) of the FTC Act, 15 U.S.C. § 45(a). 

THIS COURT'S POWER TO GRANT RELIEF 

18. Section 621(a)(2)(A) of the FCRA, 15 U.S.C. § 1681s(a)(2)(A), 

authorizes the Court to award monetary civil penalties in the event of a knowing 

violation of the FCRA, which constitutes a pattern or practice. Teletrack's 

violations of the FCRA, as alleged in this Complaint, have been knowing and have 

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constituted a pattern or practice of violations. As specified by the Federal Civil 

Penalty Inflation Adjustment Act of 1990,28 U.S.C. § 2461, as amended by the 

Debt Collection Improvements Act of 1996, Pub. L. 104-134, § 31001(s)(1), 110 

Stat. 1321-373, the Court is authorized to award a penalty of not more than $2,500 

per violation for violations occurring before February 10,2009, and $3,500 per 

violation for violations occurring on or after that date. 

19. Each instance in which Teletrack has failed to comply with the FCRA 

constitutes a separate violation for the purpose of assessing monetary civil 

penalties under section 621 of the FCRA, 15 U.S.C. § 1681s. Plaintiff seeks 

monetary civil penalties for every separate violation of the FCRA. 

20. Under section 621(a) of the FCRA, 15 U.S.C. § 1681s(a), and section 

13(b) of the FTC Act, 15 U.S.C. §53(b), this Court is authorized to grant 

injunctive and such other relief as the Court may deem appropriate to halt 

violations of the FTC Act and the FCRA. 

PRAYER FOR RELIEF 

WHEREFORE, Plaintiff requests that this Court, pursuant to 15 U.S.C. §§ 

45(a), 53(b), 1681s, and 1691c, and pursuant to the Court's own equitable powers: 

(1) Award Plaintiff such preliminary injunctive and ancillary relief as 

may be necessary to avert the likelihood of consumer injury during the pendency 

of this action and to preserve the possibility of effective final relief, including, but 

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not limited to, temporary and preliminary injunctions; 

(2) Enter judgment against Defendant and in favor of Plaintiff for each 

violation alleged in this Complaint; 

(3) Enter a permanent injunction to prevent future violations of the 

FCRA and the FTC Act by Defendant; 

(4) Award Plaintiff monetary civil penalties from Defendant for each 

violation of the FCRA alleged in this Complaint; 

(5) Award Plaintiff the costs of bringing this action; and 

(6) Award Plaintiff such other and additional relief as the Court may 

deem just and proper. 

Dated ,2011 ------

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FOR THE UNITED STATES OF 

AMERlCA: 

TONY WEST 

Assistant Attorney General 

Civil Division 

U.S. DEPARTMENT OF JUSTICE 

SALLY QUILLIAN YATES 

United States Attorney 

Northern District of Georgia 

MINARHEE 

Assistant U.S. Attorney 

Northern District of Georgia 

GA Bar. No. 602047 

600 Richard B. Russell Federal Building 

75 Spring Street, S.W. 

Atlanta, GA 30303-3309 

Phone: 404-581-6000 

Mina.Rhee@usdoj .gov 

MAAME EWUSI-MENSAH FRlMPONG 

Acting Deputy Assistant Attorney General 

Civil Division 

KENNETH L. JOST 

Trial 'Attorney 

Office of Consumer Protection Litigation 

U.S. Department of Justice 

PO Box 386 

Washington, D.C. 20044 

Phone: 202-307-6154 

alan.phelps@usdoj.gov 

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OF COUNSEL: 

KATRINA BLODGETT 

KATHERINE WHITE 

Attorneys 

Federal Trade Commission 

Division of Privacy and Identity 

Protection 

Federal Trade Commission 

601 New Jersey Avenue, NW 

Suite NJ- 3158 

Washington D.C. 20001 

Phone: 202-326-3158 

Phone: 202-326-2878 

Fax: 202-326-3768