LexisNexis pays $13.5 million to settle claims that it sold reports to debt collectors.
LexisNexis Risk & Analytics Group Inc. will pay $13.5 million and overhaul its Accurint background search product to settle a national class action suit, according to the Law360 website. The suit claims the company sold reports to debt collectors without following consumer protection laws, the site said.
About 31,000 class members reportedly will get a payment from the $13.5 million deal under the proposed settlement.
The website said LexisNexis also will separate its sale of Accurint for Collections reports based on content and use, according to a joint motion to approve the settlement.
The dispute centered on whether Accurint reports, which were used by debt collectors to track down consumers, were “consumer reports” as defined under the Fair Credit Reporting Act, the site said.
LexisNexis reportedly will split Accurint for Collections into two product and service lines, each containing separate sets of information for different uses. One product line will be treated by the company as falling within the FCRA’s “consumer report” definition, according to Law360.
http://www.daytondailynews.com/news/business/lexisnexis-pays-135m-to-settle-suit/nWxJQ/