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Fact check: What was the lawsuit that the cfpb dropped against TransUnion?
1. Summary of the results
The CFPB (Consumer Financial Protection Bureau) dropped its lawsuit against TransUnion and former executive John Danaher in the US District Court for the Northern District of Illinois [1]. The lawsuit, which originated in 2022, was related to allegations that TransUnion violated a 2017 settlement regarding deceptive marketing practices for credit monitoring services [2]. The case was dismissed with prejudice through a joint stipulation, meaning it cannot be revived by any future CFPB director [1].
2. Missing context/alternative viewpoints
Several important contextual elements were not mentioned in the original question:
- The lawsuit specifically involved allegations that TransUnion was enrolling customers in unwanted monthly monitoring services through misleading advertising [2]
- By 2019, the CFPB had received nearly 100 customer complaints about these practices [2]
- TransUnion has consistently denied deceiving customers [2]
- There is a separate, unrelated class action lawsuit against TransUnion regarding credit reporting inaccuracies [3]
- The case was complicated by constitutional arguments about appropriations [2]
3. Potential misinformation/bias in the original statement
The simple question about what lawsuit was dropped fails to capture several important aspects:
- This dismissal appears to be part of a broader trend of the CFPB dropping multiple enforcement actions, influenced by Trump administration directives [2]
- The dismissal benefits both:
- TransUnion and its executives, who avoid potential penalties and negative publicity
- The current CFPB administration, which appears to be taking a less aggressive stance on enforcement