The Federal Trade Commission on 19 December said Time Warner Cable Inc. (TWC) has agreed to pay $1.9 million to settle the first case brought under the commission's risk-based pricing rule.
Under the rule, finalized in 2011, creditors must notify customers of higher charges that are based on less-than-favorable credit histories.
"Consumers have the right to know if they are paying more for something because of information in their credit report," said Jessica Rich, director of the FTC's Bureau of Consumer Protection. "Getting this notice gives you a right to a free copy of your report, so you can make sure everything on it is correct. Some of Time Warner Cable's customers were missing out on this important right."
A representative for Time Warner Cable wasn't immediately available for comment.
In addition to agreeing to pay the penalty, Time Warner Cable is also prohibited from breaking the rule again, the FTC said.
Shares of Time Warner Cable were down 59 cents to $133.90. The stock is up 38% so far this year.
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