CFPB sues TransUnion for violating previous agreement
The Consumer Financial Protection Bureau sued credit company TransUnion and one of its long-time executives on Tuesday, alleging the company completely “disregarded” a previous order from five years ago to stop selling dubious credit-related products and marketing.
Consumer financial-hardship agreements slow but remain high
FILE - In this Oct. 1, 2020 file photo, a woman walks past a personal finance loan office in Franklin, Tenn. Overall, the hardship agreements — which can put a pause on payments or provide consumers other relief — hit their peak in May at 4.77%. TransUnion looked at auto, credit card, mortgage and unsecured personal loan products. Furthermore, TransUnion found that consumers had varying preferences of how they'd like to resume payments. Typically the length of a hardship agreement and plans to resume payments are established by the lender based on a consumer's needs.
Keeping your credit profile healthy during a pandemic
COVID AND CREDITThe good news is that consumers, by and large, improved their credit profile during the pandemic, despite record unemployment and massive business shutdowns. The average FICO credit score was 711 in July, up 5 points from a year earlier, according to Fair Isaac, the company behind the score. A FICO score runs from 300-850 and is one of the most widely used metrics to determine a consumer’s credit worthiness. In the case of the COVID-19 pandemic, it could be a significant lag because of the extraordinary steps taken to help consumers. If you have run out the clock on a relief agreement, seek an extension if needed.