A major consumer credit reporting agency has reached a $393,000 settlement with the Federal Trade Commission to resolve claims that it improperly sold information about consumers who didn't make their mortgage payments on time, the FTC announced on Wednesday.
Equifax Information Services LLC sold more than 17,000 lists of consumer data to Direct Lending Source Inc. and other companies, according to the FTC. Direct Lending Source then sold some of the lists to businesses that used the information to target consumers in financial distress, the FTC alleges. The company agreed to a $1.2 million settlement with the FTC.
Tim Klein, an Equifax spokesman, said his company "did not and [does] not admit to any wrongdoing" as part of the settlement. Equifax severed its ties with Direct Lending and its affiliates in the summer of 2011, he added.
The FTC during the past few years has filed more than 35 cases against companies that falsely claim to provide mortgage relief services, according to the agency.