Dun&Bradstreet Sued By FTC for Frauding Businesses



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Dun&Bradstreet Sued By FTC for Frauding Businesses

FTC COMPLAINT:

The FTC alleges that Dun & Bradstreet deceived companies about the purported benefits of its CreditBuilder line of products; used deceptive automatic renewal practices, including a switcheroo that transferred customers into a much more expensive tier of service without clear notice; and reported inaccurate information on businesses’ credit reports without providing a reasonable process for fixing errors. The proposed settlement will require the company to give refunds to many customers and to change its practices to help ensure that D&B responds appropriately to complaints from all businesses about incorrect information in their D&B reports.

For years, the FTC has warned consumers about the injury that can result from errors on their credit reports or when their payment history isn’t accurately reported. That applies to businesses, too, especially given that Dun & Bradstreet maintains commercial credit reports about more than 300 million of them worldwide. Even according to D&B, an inaccurate (or incomplete) D&B credit report can put a crimp in a company’s ability to attract new customers, increase cash flow, negotiate better contract terms with suppliers and other businesses, and improve its financial health. So, errors on a business’s credit report – even mistakes about the business’s name, address, and other basic information – can have big consequences for small firms.

The complaint alleges a number of ways in which Dun & Bradstreet used deceptive claims to promote its products. Just one example was D&B’s promise that small businesses could easily add payment experience information to their reports. A business that spotted inaccurate or incomplete payment information in its D&B report had only one place to turn: to Dun & Bradstreet itself. And how did Dun & Bradstreet respond? Often by pitching its CreditBuilder line of services, including what D&B described as “credit-on-self” products, which supposedly allowed small businesses to add their payment history information to their own credit reports.

That’s what Dun & Bradstreet promised, but the FTC says that after paying D&B thousands of dollars for its services, most small businesses got much less than they bargained for. As the complaint alleges in detail, D&B “does not help subscribers in their efforts to have payment experiences added to their credit report” and “rejects a majority of the submissions.” The upshot: “[T]housands of businesses that have paid for these products cannot get even a single payment experience added to their credit reports.”

The FTC also says that Dun & Bradstreet pitched CreditBuilder to new businesses by falsely claiming that the business had to buy the product so D&B could conduct a background check and get the company a completed D&B credit report.

The lawsuit alleges that Dun & Bradstreet’s mistreatment of small businesses didn’t end there. Just as some companies mislead consumers with deceptive claims and practices related to automatic renewals – conduct the FTC has challenged as illegal – the lawsuit says Dun & Bradstreet targeted businesses with similar tactics. For example, D&B told some customers that at the end of their subscription term, their service would be automatically renewed and they would be charged at the “then current price.” What D&B didn’t disclose was that this could result in hefty price increases. In fact, customers who signed up for a $499 annual subscription could end up being charged $1,599 per year for a different product, without adequate notice of the change. And D&B would charge the “then current price” only if it was financially advantageous to D&B. If the price went up, customers were billed the higher price. If the price went down, customers were charged the previous – higher – price. In other words, heads, D&B wins and tails, small businesses lose.

In addition, the complaint charges that D&B’s practice of reporting incorrect information on affected businesses’ D&B credit reports without providing a reasonable means for them to dispute the misinformation is an unfair trade practice, in violation of the FTC Act.

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17 Responses

  1. Monica Sigei says:

    Thank you for sharing this important information.
    Be blessed.

  2. Box Office says:

    @ DC TOPICS Bro review what you said at 4:50. The government still utilizes DND they added the UIE for an extra layer of protection.

  3. i forgot to respond the night you released this video my mind is blown away

  4. Big Lem says:

    Everybody got a fuckin gimmick!!

  5. Mitzi704 says:

    Great info and nice new set look

  6. I signed DNB builder credit program did absolutely nothing at all charged me $1200? How can I get my money back please do tell?

  7. I now get some of the highest funding with not even a duns number or score #pg crew all day

  8. Yeah screw dnb that paydex score years ago it did nothing for me plus they somehow deemed my company in existent and erased mt scores then had the nerve to bill me almost 1500 a year after

  9. Paul Lomax says:

    I knew they were scammers bro thanks a lot call them one time they try to sell me one of those products. Since you been on the scene bro I don't see hardly any of those how to build business credit videos anymore. Want to build business credit PG everything.

  10. No Filter says:

    They almost got me for that program in December I'm glad I "thought about it"

  11. LMAO!! LMAO!! Not surprised.They know they are wrong. They tried to sell me their eCredible type services for 2k.
    Madness!!No integrity.They can report these things myself.

  12. Thumbs up on the new set loving it keep it up keep it coming. Great content

  13. Grabs popcorn like Michael Jackson in the Thriller video.

  14. I remember when you first led me to the person I’m working with now, due to your videos

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