Class Action Claims eMoney Unlawfully Accessed, Sold Consumers’ Credit Files

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A proposed class action alleges eMoneyUSA Holdings LLC has unlawfully accessed consumers’ credit reports and shared the information with third parties without a permissible purpose to do so.

The 16-page lawsuit states that payday lender eMoney regularly contracts with credit services organizations to purchase information about consumers who are likely to take out a loan and then sells the data to high-interest lenders and loan brokers. According to the case, eMoney is prohibited by the Fair Credit Reporting Act (FCRA) from accessing and disseminating consumers’ credit reports without a permissible purpose, such as for a credit transaction, credit application or business transaction.

The suit claims that although proposed class members never had a relationship with eMoney, the company accessed and disclosed their credit information without proper authorization.

The plaintiff, a Saint Croix County, Wisconsin resident, says she received a copy of her consumer report from non-party Clarity Services in March 2021 and discovered that eMoney had accessed her credit file twice in June 2020. Per the suit, the plaintiff’s consumer report contained “vast amounts” of personally identifiable and financial information, including the woman’s name, address, Social Security number and financial transaction history.

The plaintiff says she has never applied for credit with eMoney or otherwise authorized the payday lender to access her credit file. According to the case, the defendant unlawfully received the plaintiff’s information from an unlicensed and unregistered loan broker without the woman’s knowledge or consent and then forwarded the information in her file to other entities, including high-interest lenders and loan brokers, without having a permissible purpose under the FCRA.

The lawsuit contends that eMoney was required by state and federal law to implement policies designed to protect consumers’ credit information, and “limit its obtainment as well as its dissemination to proper parties,” but has failed to do so.

The plaintiff claims eMoney’s inquiries into her credit are now a permanent component of her credit file and have impaired her future access to credit.

The lawsuit looks to represent anyone whose consumer report was obtained or used by eMoney from April 13, 2020 through the present when, at the time the report was obtained or used, the individual did not have a credit relationship with eMoney.

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