Consumer complaint received 2024-01-30
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: TRANSUNION INTERMEDIATE HOLDINGS, INC. (PA)

Transunions actions appear to be in direct violation of both the Fair Credit Reporting Act ( FCRA ) and the Privacy Act of 1974. The FCRA and the Privacy Act are crucial pieces of legislation designed to protect the rights and privacy of federally protected consumers.

Under the Privacy Act of 1974, 5 U.S. Code 552a, important definitions are outlined, including the term " record, '' which encompasses any item, collection, or grouping of information about an individual maintained by an agency, such as education, financial transactions, medical history, and criminal or employment history. This definition explicitly includes consumer reports. 

Furthermore, the Privacy Act stipulates conditions of disclosure, explicitly stating that no agency shall disclose any record contained in a system of records by any means of communication to any person or another agency unless pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains. Transunion is subject to these regulations and should have obtained prior written instruction from whom the records relate before any disclosure. 

Transunion has disclosed records on my consumer report without obtaining prior written consent, which is a clear violation of the Privacy Act. Section 3711 ( e ) of title 31 permits the disclosure of information to consumer reporting agencies under certain circumstances, but it is contingent upon the head of the agency establishing procedures to obtain satisfactory assurances from each consumer reporting agency that they are complying with all laws related to providing consumer credit information. 

Transunion has failed to establish and adhere to such procedures, which constitutes a violation of both the FCRA and the Privacy Act. The FCRA also mandates that consumer reporting agencies take measures to ensure the accuracy and confidentiality of the information they collect. 

Under 12 CFR 1016.1, these financial institutions, XXXX, XXXX, XXXX, XXXX XXXX XXXX, and XXXX XXXX XXXX, are required to provide notice to customers about their privacy policies and practices. This includes conditions under which nonpublic personal information about consumers may be disclosed to nonaffiliated third parties. Consumers are also provided with the right to opt out of such disclosures, subject to certain exceptions.

Specifically, I would like to bring to your attention the following violations : Failure to Provide Clear and Conspicuous Opt-Out Notice ( 12 CFR 1016.7 ) : According to the regulations, financial institutions are required to provide a clear and conspicuous notice to consumers explaining the right to opt out. The notice must include a reasonable means by which the consumer may exercise the opt-out right. If the opt-out means provided are unreasonable, it constitutes a violation.

Unreasonable Opt-Out Means ( 12 CFR 1016.7 ( a ) ( 2 ) ( iii ) ) : Financial institutions must provide a reasonable means for consumers to opt out, such as check-off boxes, reply forms, electronic means, or toll-free telephone numbers. If the provided means are deemed unreasonable, it is a violation. 
Timely Compliance with Opt-Out ( 12 CFR 1016.7 ( g ) ) : Financial institutions are required to comply with a consumer 's opt-out direction as soon as reasonably practicable after receiving it. Failure to do so is a violation.

Continuing Right to Opt Out ( 12 CFR 1016.7 ( h ) ) : Consumers have the right to opt out at any time, and financial institutions must respect this right.

Duration of Consumer 's Opt-Out Direction ( 12 CFR 1016.7 ( i ) ) : A consumer 's direction to opt out is effective until revoked in writing or electronically, as agreed upon by the consumer.

In addition to the above, 15 U.S. Code 6802 imposes obligations on financial institutions, requiring them to provide notice to consumers before disclosing nonpublic personal information to nonaffiliated third parties. Consumers must be given the opportunity to opt out of such disclosures, and clear explanations must be provided. 

I previously opted out of the reporting practices under 15 U.S. Code 6802 with the above financial institutions. Pursuant to the provisions of the law and the Privacy of Consumer Financial Information ( Regulation P ), I have exercised my right to opt out of the disclosure of my nonpublic personal information to nonaffiliated third parties.

Under 15 U.S. Code 6805, the enforcement of opt-out provisions is the responsibility of regulatory bodies such as the Bureau of Consumer Financial Protection , Federal functional regulators, State insurance authorities, and the Federal Trade Commission . As such, it is imperative that these financial institutions and Transunion adhere to the opt-out preferences expressed by me as a federally protected consumer.

I want to bring your attention that I have previously submitted my opt-out direction to Transunion and other financial institutions, including yours. In accordance with 12 CFR 1016.7 ( g ), which states, " Time to comply with opt-out. You must comply with a consumer 's opt-out direction as soon as reasonably practicable after you receive it, '' I request that your institution immediately takes action to delete any adverse accounts related to my nonpublic personal information. 

Failure to comply with the prompt deletion of adverse accounts in accordance with my opt-out direction may result in violations of the law and regulatory action. I trust that you will take the necessary steps to enforce my opt-out status and promptly delete any adverse accounts associated with my information.