FTC: Equifax unit TALX settles charges

NEW YORK - A unit of credit report service company Equifax Inc. has agreed to settle Federal Trade Commission charges that it failed to provide certain disclosures to the users of its consumer reports, the FTC said Thursday.

As part of the proposed settlement, the company is required to pay a $350,000 civil penalty.

The unit, TALX Corp., sells income and employment history information about people to lenders, pre-employment screeners, and others for use in determining their eligibility for credit, employment, or other purposes.

The FTC said this makes it a consumer reporting agency subject to the Fair Credit Reporting Act, and TALX violated the act by not providing certain notices to its users. These include notifying people if the someone takes adverse action against them based on their consumer report.

The proposed settlement requires TALX to provide the required notices to users and to entities which give it information for its consumer reports. Equifax spokesman Tim Klein said TALX has said they were providing the notices, but voluntarily resolved the dispute to avoid costly litigation.

Shares of Equifax rose 9 cents to close at $25.39.

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