TeleCheck To Pay FTC $3.5M To End FCRA Claims

Law360, New York (January 16, 2014, 5:46 PM EST) -- Check authorization provider TeleCheck Services Inc. has settled a Federal Trade Commission case alleging Fair Credit Reporting Act violations in its handling of consumer information and treatment of those whose checks were declined, paying a $3.5 million penalty, the FTC announced Thursday.

A data broker that offers merchants on-the-spot recommendations to accept or decline a check, TeleCheck allegedly failed to assure the accuracy of its consumer information and to handle disputes of that information properly. Specifically, TeleCheck dodged its responsibilities under the FCRA as a consumer reporting...
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