Alder Fined $600K for Using #Consumers’ Credit Scores Without Proper Notice | #TpromoCom | Alder violated the Fair Credit Reporting Act by failing to provide customers with the required risk-based pricing notice. (SSI) https://bit.ly/35YN7zh
The Utah-based home security company had to pay a $600,000 civil money penalty for not giving consumers notice when the it provided less favorable credit terms based on a review of their credit reports —also known as risk-based pricing.
The complaint alleged that Alder, in extending credit to its customers for its home alarm products and services, charged customers who had lower credit scores higher activation fees, but failed to provide those customers with the required risk-based pricing notice, according to a release from the Consumer Financial Protection Bureau.
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