The Federal Trade Commission (FTC) announced yesterday that TeleCheck Services, a check authorization service company, along with its associated debt-collection entity, TRS Recovery Services, has agreed to pay $3.5 million as part of a settlement. The FTC charged the firm with violating the Fair Credit Reporting Act (FCRA) by not following proper dispute procedures and sometimes not investigating disputes at all when consumers had their checks denied by retailers based on TeleCheck’s information. Further, the FTC claimed TRS did not abide by the “Furnisher Rule,” which mandates that those providing credit information ensure that information’s accuracy and integrity. The settlement amount is the second-largest for a FCRA violation.
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