Argus Information and Advisory Services, a subsidiary of the nationwide consumer reporting agency TransUnion, has agreed in writing to not seek any government contract with the Consumer Financial Protection Bureau (CFPB) for three years, the bureau said Tuesday.
The bureau said the Department of Justice last March took action against Argus to resolve claims that it had violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators. It said DOJ alleged that Argus “ingested information in violation of its federal government contracts and improperly monetized it in its commercial business,” and that Argus paid $37 million to resolve the allegations.
“The CFPB was one of many federal financial regulators with a contractual arrangement with Argus,” the bureau said. “The CFPB notified the TransUnion affiliate that it was considering additional actions, and Argus has now committed to the CFPB that it will not seek any contracts for three years.” (The CFPB announcement did not include any link to the written agreement.)
As background, the bureau said it sued TransUnion and a former executive in 2022 for violating a law enforcement order; it said litigation is ongoing. In 2023, it said, the bureau and the Federal Trade Commission (FTC) took action against TransUnion for illegal rental background check and credit reporting practices, leading to $23 million in restitution and penalties.
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