Certegy Check Services Inc., a check-authorization company based in St. Petersburg, has agreed to pay $3.5 million to settle Federal Trade Commission charges that it violated the Fair Credit Reporting Act.
Certegy failed to follow proper procedures for consumers disputing a check that had been denied, according to the FTC complaint filed Thursday in the U.S. District Court for the District of Columbia. The FTC also alleged that Certegy failed to assure maximum possible accuracy of the information it provided to retail merchants nationwide, as required by the FCRA.
The case was part of a broader initiative to target the practices of data brokers, who compile, maintain and sell sensitive consumer information, the FTC said.
Consumer reporting agencies like Certegy sell information to companies making decisions about customers, such as their ability to get credit or pay for goods and services by check.