Teletrack Penalized $1.8 Million for Peddling Consumer Credit Reports

A credit reporting agency agreed to pay a nearly $2 million fine to settle federal charges that it broke the law by selling sensitive financial information about consumers seeking payday loans to marketers.

Teletrack Inc. of Norcross, Ga., will pay the Federal Trade Commission $1.8 million to settle an FTC lawsuit charging it with violating the Fair Credit Reporting Act (FCRA) by selling credit reports to marketers.

Specifically, the FTC accused Teletrack of running afoul of the FCRA and abusing consumer privacy by peddling lists of people who were struggling to keep themselves afloat by applying for "non-traditional credit products" such as payday loans.