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On January 14, 2025, New York Attorney General Letitia James announced that the state had entered into a settlement with a national credit reporting provider to resolve allegations that the provider had harmed consumers by disseminating incorrect credit reporting information to lenders. According to the Attorney General, the credit reporting provider implemented a change to its credit scoring model that resulted in the model relying on inaccurate information concerning borrowers. The Attorney General alleged that the error in the provider’s model resulted in the provider reporting an incorrect negative shift in the credit scores of tens of thousands of New York borrowers. The Attorney General further alleged that this practice did not comport with the provider’s representations as to its methodology for calculating borrowers’ credit scores. As part of the Attorney General’s agreement with the provider, the Attorney General agreed to discontinue its investigation into the provider’s practices. The provider agreed (among other things) to ensure that its marketing materials accurately represented the manner in which it calculated credit scores, review and update its policies and procedures for making technological changes which may impact credit score calculations, and to implement reasonable procedures to ensure maximum accuracy in credit reporting. The provider also agreed to pay $725,000 to the state of New York to be used as consumer redress and penalties. |
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