By Rory Gallivan
LONDON--A U.S. consumer watchdog has demanded information from
Experian PLC (EXPN.LN) as it investigates whether companies that
provide information about consumers' credit worthiness are engaging
in unlawful practices.
Experian, which collects information about consumers' loan and
repayment history so banks and other institutions can determine how
risky they are, received a Civil Investigative Demand from the
Consumer Financial Protection Bureau, its Vice President of
Investor Relations Peg Smith said in a meeting with analysts. A CID
is a subpoena that requires the submission of documents and other
information.
Experian's rival Equifax Inc (EFX) disclosed in April that it
received a CID as the CFPB investigates possible unlawful acts
relating to marketing, sales and provision of consumer reports and
credit scores.
"We have also received a CID, but just know that it is nothing
more than through a subpoena requesting additional information from
our business that we had not prior to that been willing to disclose
because of confidentiality," Ms. Smith said.
"There's no wrongdoing, there's no indication of problems," she
added.
A spokesperson for Experian said the CID it received is "a
standard request for information" as the CFPB investigates business
practices of the major credit reporting agencies in the U.S. The
spokesperson added that the company cannot disclose details of the
request or Experian's response due to confidentiality
requirements.
The CFPB didn't immediately respond to a request for details of
the investigation it's conducting.
Regulators keep a close eye on credit checking companies such as
Experian and Equifax because their reports play a big role in
determining whether people's loan requests are approved and the
rate of interest they must pay.
Experian earlier Friday reported a 4% rise in revenue for the
three months ended June 30, helped by an improved environment for
consumer and business lending in North America and the U.K.
North America accounted for half of Experian's revenue in the
year ended March 31.
Shares at 1412 GMT, up 12 pence, or 1.2%, at 1,015 pence valuing
the company at GBP10.1 billion ($17.3 billion).
Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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