[Photo: CFPB Director Richard Cordray]

From time to time, you’ve probably gotten offers from credit bureaus - TransUnion, Equifax, Experian - promising to provide your credit score for free or for a modest $1 charge – only to have the bureau try and sell you some expensive annual credit protection. Well, that’s precisely what this settlement is about.

Credit reporting agencies TransUnion and Equifax, agreed to pay more than $23.2 million in fines and restitution to settle charges leveled by the U.S. Consumer Financial Protection Bureau (CFPB) that they deceived consumers about the usefulness and cost of credit scores they bought. TransUnion will reimburse $13.9 million to consumers and pay a $3 million civil fine, while Equifax will reimburse $3.8 million and pay a $2.5 million civil fine.

The CFPB said the settlement also resolve charges that TransUnion and Equifax lured consumers into enrolling in credit services advertised as free or costing only $1, but which could cost more than $200 a year. With today’s settlement, both companies agreed to modify their marketing practices.

According to the CFPB, the wrongful conduct had occurred at TransUnion since July 2011 and at Equifax between July 2011 and March 2014, and violated the Dodd-Frank financial reform law. While many lenders rely on credit scores from TransUnion, Equifax and rival Experian when lending money, the 2 credit bureaus falsely represented that the credit scores they sold to consumers were the same scores that lenders used.