The FTC announced Time Warner Cable has agreed to pay $1.9 million to settle the first case brought under the commission’s risk-based pricing rule. Under the 2011 rule, creditors must notify customers of higher charges that are based on less-than-favorable credit reports.
Time Warner Cable failed to provide proper credit notice between 1/11 and 3/13. As part of the settlement, TWC has to provide in each risk-based pricing notice, other statements explaining details about credit reports, credit terms, and consumers’ rights.
“Consumers have the right to know if they are paying more for something because of information in their credit report,” said Jessica Rich, the FTC’s director of the bureau of consumer protection. “Getting this notice gives you a right to a free copy of your report, so you can make sure everything is correct. Some of Time Warner Cable’s customers were missing out on this important right.”