TransUnion (NASDAQ:TRU) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement.
TransUnion, on December 22, 2016, agreed to settle with the
Consumer Financial Protection Bureau (CFPB). As previously
disclosed, we received a Civil Investigative Demand (the CID)
from the CFPB on September 14, 2015. The CID was focused on
common industry practices relating to the advertising, marketing
and sale of consumer reports, credit scores or credit monitoring
products to consumers by our Consumer Interactive segment.
Consumer Financial Protection Bureau (CFPB). As previously
disclosed, we received a Civil Investigative Demand (the CID)
from the CFPB on September 14, 2015. The CID was focused on
common industry practices relating to the advertising, marketing
and sale of consumer reports, credit scores or credit monitoring
products to consumers by our Consumer Interactive segment.
In connection with the agreed settlement, TransUnion has executed
and delivered a Stipulation and Consent to the Issuance of a
Consent Order, to which TransUnion will accept the issuance of a
consent order (the Consent Order) by the CFPB requiring
TransUnion to:
and delivered a Stipulation and Consent to the Issuance of a
Consent Order, to which TransUnion will accept the issuance of a
consent order (the Consent Order) by the CFPB requiring
TransUnion to:
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implement certain agreed practice changes in the way
TransUnion advertises, markets and sells products and services offered directly to consumers, including more robust disclosures regarding the nature of the credit score being provided as well as confirming consumer consent if the product or service is being sold through the use of a negative option feature (i.e.,>a trial period becomes a recurring paid subscription unless the consumer affirmatively cancels their registration); and |
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develop and submit to the CFPB for approval a comprehensive
compliance plan detailing the steps for addressing each action required by the terms of the Consent Order and specific time frames and deadlines for implementation. |
We will incur a one-time charge of approximately $19.4 million in
the fourth quarter of 2016, consisting of the following:
approximately $13.9 million for redress to eligible consumers; a
civil money penalty to be paid to the CFPB in the amount of $3.0
million; and our current estimate of $2.5 million for additional
administrative, legal and compliance costs we will incur in
connection with the settlement. The CFPB is expected to recommend
the aforementioned settlement to the Director for final approval.
the fourth quarter of 2016, consisting of the following:
approximately $13.9 million for redress to eligible consumers; a
civil money penalty to be paid to the CFPB in the amount of $3.0
million; and our current estimate of $2.5 million for additional
administrative, legal and compliance costs we will incur in
connection with the settlement. The CFPB is expected to recommend
the aforementioned settlement to the Director for final approval.
The foregoing description of the material terms of the settlement
is qualified in its entirety by reference to the final Consent
Order, a copy of which will be filed with the Securities and
Exchange Commission after acceptance and publication by the CFPB.
is qualified in its entirety by reference to the final Consent
Order, a copy of which will be filed with the Securities and
Exchange Commission after acceptance and publication by the CFPB.
