Time Warner Cable has agreed to pay $1.9 million to settle a Federal Trade Commission complaint that it violated the Risk-Based Pricing Rule.
Adopted in 2011, the rule requires creditors to provide notice to consumers who get less favorable terms based on credit reports. It is the first enforcement case brought under the relatively new law.
According to the FTC, TWC was checking credit reports of prospective customers and depending on the result it might require a deposit or prepay the first month's rent, requirements not made of others with better credit scores.
It is not that TWC couldn't differentiate its charges, but it was required to notify its subs. "Time Warner Cable failed to provide the required risk-based pricing notices to consumers beginning in January of 2011 and continuing until at least March of 2013," the complaint alleges.
“Consumers have the right to know if they are paying more for something because of information in their credit report,” said Jessica Rich, director of the FTC's Bureau of Consumer Protection, in a statement. “Getting this notice gives you a right to a free copy of your report, so you can make sure everything on it is correct. Some of Time Warner Cable’s customers were missing out on this important right.”
"We are pleased to have resolved this matter so that we can focus all of our efforts to providing outstanding services to our customers," a TWC spokesman said.
