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News of the Competition (06/19/2014)
  • JACKSON, Miss. (6/19/14)--Mississippi Attorney General Jim Hood has sued credit report publisher Experian Information Solutions, accusing the company of violating consumer protection laws (American Banker June 17). The top state prosecutor claims that Experian knowingly included faulty data in its reports, which illegally hindered the creditworthiness of millions of Americans. The complaint also alleges that the company provides no meaningful process for consumers to ask the company to revise erroneous information. Hood's office accused the company of systematically ruling in favor of the bank or debt collector that reported the debt and attempting to sell consumers products when they call to protest. It also alleges that the company mistakenly cited consumers' inclusion on a federal terrorism watch list. The litigation, initially filed in a state courthouse in Biloxi, Miss., was last week transferred to a federal court in the state, with  allegations pertaining to the Fair Credit Reporting Act. American Banker described the case as the first significant legal action by a state against a credit bureau in years and said that it could encourage other states and federal agencies to also sue Experian. The company has claimed that, to the best of its knowledge, it complies with data protection requirements, but warned its investors earlier this year that the Consumer Financial Protection Bureau and its counterpart in Britain could have an effect on the company's business model ...
  • WILMINGTON, Del. (6/19/14)--Subscriber's to Suze Orman's prepaid debit card, Approved, have been informed that it will no longer work as of July 1, according to a letter from her business partner, Bancorp Bank (New York Times June 17). The company has encouraged cardholders to spend the money on their cards before the end of the month. Orman, a celebrity financial adviser, introduced Approved in 2012. Users paid a $3 monthly fee in order to use it. She had previously stated that she was proud of the fact that TransUnion, a major credit bureau, had agreed to examine data from her cards, claiming it was unfair that those who borrowed money on credit cards were rewarded under the current credit-scoring system. According to one Approved customer who spoke to the New York Times, a Bancorp representative said that Orman would address cardholders after the venture is wound-up in July. American Banker reported June 17 that the card might have failed because the monthly fee might not have been enough to cover costs of operation. Another recent high profile prepaid card to have failed recently was the Karadashian Card, which was shut down after consumers complained that they were charged up to a year's worth of monthly fees up front. Another celebrity prepaid card, Russell Simmons' Rush Card, has actually succeeded in the long run, and is now expanding into payroll services ...


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