Today, the CFPB is announcing that Argus Information and Advisory Services, a subsidiary of TransUnion, has agreed in writing that it will not seek any government contract with the Consumer Financial Protection Bureau for three years.
TransUnion markets Argus to clients for its capabilities to ingest proprietary portfolio information from various financial institutions to provide a “full wallet view.” As a data broker and credit reporting conglomerate, TransUnion has a strong financial incentive to amass large quantities of information.
In March 2024, the Department of Justice took action against Argus to resolve claims that the company violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators. The Department of Justice alleged that Argus ingested information in violation of its federal government contracts and improperly monetized it in its commercial business. Argus paid $37 million to resolve these allegations.
The CFPB was one of many federal financial regulators with a contractual arrangement with Argus. The CFPB notified the TransUnion affiliate that it was considering additional actions, and Argus has now committed to the CFPB that it will not seek any contracts for three years.
Separately, in 2022, the CFPB sued TransUnion and a former executive for violating a law enforcement order. That litigation is ongoing. In 2023, the CFPB and the Federal Trade Commission took action against TransUnion for illegal rental background check and credit reporting practices, leading to $23 million in restitution and penalties.
The CFPB will continue to closely monitor government contractors and data brokers to halt abuse and misuse of sensitive data.
