Newsroom
January 17, 2014
TeleCheck to pay $3.5 million fine under FCRA
Jan. 17, 2014 – The Federal Trade Commission announced a $3.5 million settlement with TeleCheck Services Inc., one of the nation's largest check authorization service companies, and its associated debt-collection entity, TRS Recovery Services Inc., over Fair Credit Reporting Act violations.
FTC said this is the second-largest settlement it has ever won in an FCRA case. Earlier this year, another check authorization company, Certegy Check Services, Inc., agreed to pay a $3.5 million fine to settle FTC allegations similar to those made against TeleCheck.
Under the FCRA, consumers whose checks are denied based on information TeleCheck provided to the merchant have the right to dispute that information and have TeleCheck investigate and correct any inaccuracies.
Among the charges lodged by FTC is that TeleCheck, based in Houston, Texas, did not follow proper dispute procedures, failed to follow reasonable procedures to assure "the maximum possible accuracy" of the information it provided to merchant clients, as required by the act, and failed to promptly correct errors on consumers' reports.
The order for TeleCheck and TRS requires the firms to change their business practices.
FTC said this is the second-largest settlement it has ever won in an FCRA case. Earlier this year, another check authorization company, Certegy Check Services, Inc., agreed to pay a $3.5 million fine to settle FTC allegations similar to those made against TeleCheck.
Under the FCRA, consumers whose checks are denied based on information TeleCheck provided to the merchant have the right to dispute that information and have TeleCheck investigate and correct any inaccuracies.
Among the charges lodged by FTC is that TeleCheck, based in Houston, Texas, did not follow proper dispute procedures, failed to follow reasonable procedures to assure "the maximum possible accuracy" of the information it provided to merchant clients, as required by the act, and failed to promptly correct errors on consumers' reports.
The order for TeleCheck and TRS requires the firms to change their business practices.
Share This
Related Resources
Add to Calendar 2024-06-26 14:00:00 2024-06-26 14:00:00 Gallagher Executive Compensation and Benefits Survey About the Webinar The webinar will share trends in executive pay increases, annual bonuses, and nonqualified benefit plans. Learn how to use the data charts as well as make this data actionable in order to improve your retention strategy. You’ll hear directly from the survey project manager on how to maximize the data points to gain a competitive edge in the market. Key findings on: Total compensation by asset size Nonqualified benefit plans Bonus targets and metrics Prerequisites Demographics Board expenses Watch On-Demand Web NAFCU digital@nafcu.org America/New_York public
Gallagher Executive Compensation and Benefits Survey
preferred partner
Gallagher
Webinar
Add to Calendar 2024-06-21 09:00:00 2024-06-21 09:00:00 The Evolving Role of the CISO in Credit Unions Listen On: Key Takeaways: [01:30] Being able to properly implement risk management decisions, especially in the cyber age we live in, is incredibly important so CISOs have a lot of challenges here. [02:27] Having a leader who can really communicate cyber risks and understand how ready that institution is to deal with cyber events is incredibly important. [05:36] We need to be talking about risk openly. We need to be documenting and really understanding what remediating risk looks like and how you do that strategically. [16:38] Governance, risk, compliance, and adherence to regulatory controls are all being looked at much more closely. You are also seeing other technology that is coming into the fold directly responsible for helping CISOs navigate those waters. [18:28] The reaction from the governing bodies is directly related to the needs of the position. They’re trying to help make sure that we are positioned in a way that gets us the most possibility of success, maturing our postures and protecting the institutions. Web NAFCU digital@nafcu.org America/New_York public
The Evolving Role of the CISO in Credit Unions
preferred partner
DefenseStorm
Podcast
AI in Action: Redefining Disaster Preparedness and Financial Security
Strategy
preferred partner
Allied Solutions
Blog Post
Get daily updates.
Subscribe to NAFCU today.