First enforcement under amended Rule results in $1.9 Million Settlement
12/19/2013 - Time Warner Cable, Inc. has agreed to settle FTC charges that the company
violated the Risk-Based Pricing (RBP) Rule, which requires creditors (including car
dealers) to give notice to consumers who are provided less favorable credit terms
based on information in their credit reports.
According to the FTC, if the credit report contains negative information, Time Warner
Cable may require the consumer to pay a deposit or pre-pay the first month’s bill.
Consumers with more favorable credit histories are not required to pay a deposit
or the first month’s bill. The FTC’s complaint alleges that Time Warner Cable failed
to provide the required risk-based pricing notices to consumers.
The RBP Rule derives from the Fair Credit Reporting Act (FCRA)