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Credit unions will face a complex and busy regulatory compliance environment in 2023. With a major r ...
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John Zasada, Compliance Consulting Director, Financial Institutions Group
On April 29, 2021, the Federal Trade Commission (FTC) announced that Vivint Smart Homes Inc (Vivint) will pay $20 million to settle allegations it violated the Fair Credit Reporting Act (FCRA). The FTC stated this was the largest monetary judgment ever for FCRA violations.
Vivint violated the FCRA by improperly obtaining credit reports in order to qualify potential customers for financing for its smart home monitoring and security products. The FTC also alleged Vivint violated the FTC’s Red Flags Rule by failing to implement an identity theft prevention program, which is required of certain companies regularly using or obtaining credit reports. Among Vivint’s misdeeds was stealing people’s personal information in order to approve others for loans.
Besides the monetary penalty, Vivint must implement an employee monitoring and training program, as well as an identity theft prevention program. Furthermore, they must obtain biennial FCRA assessments by an independent third party.
Want to avoid costly FRCA penalties? Rely on the regulatory compliance specialists at Doeren Mayhew to help assess your program. Contact us today!
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