A nationwide speciality consumer reporting agency that provides casinos with credit reports that are used to assess customers’ eligibility for credit and check cashing has agreed to settle Federal Trade Commission charges that it violated the Fair Credit Reporting Act (FCRA). The settlement requires the company to pay a $150,000 civil penalty and bars future violations of the FCRA.
According to the FTC, Central Credit LLC failed to inform casinos that use its credit reports of their legal obligations under the FCRA, such as providing adverse-action notices to consumers when credit is declined or a check not cashed, and failed to inform companies that furnish information for credit reports of their legal obligation to provide accurate information about consumers. Central Credit also failed to inform consumers of their rights under FCRA, such as the right to obtain a free annual credit report. Finally, the company failed to establish a streamlined process for consumers to request free annual credit reports, including publishing a toll-free number and providing clear instructions for requesting a free report.
In addition to imposing the civil penalty, the settlement requires Central Credit, a wholly owned subsidiary of Global Cash Access, Inc., to provide FCRA-required notices to users and furnishers of consumer report information, to provide a “Summary of Rights” to consumers who obtain reports from Central Credit, and to have a streamlined process for consumers to obtain a free annual credit report via a toll-free number.