On January 21, the CFPB announced that a data broker and credit reporting subsidiary of a credit reporting conglomerate has agreed not to seek government contracts with the CFPB for three years to avoid further actions by the Bureau. This decision followed DOJ actions from March 2024, where the subsidiary was accused of violating the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The allegations involved the improper use and monetization of credit card data obtained through federal contracts. The subsidiary paid $37 million to resolve these claims with the DOJ. The parent company of the subsidiary faced other CFPB actions, including a CFPB lawsuit for allegedly violating a law enforcement order, a case that remains ongoing (covered by InfoBytes here).
