TWC Settles Complaint With FTC

Time Warner Cable has agreed to pay $1.9 million to settle a Federal Trade Commission complaint that it violated the Risk-Based Pricing Rule.

Adopted in 2011, the rule requires creditors to provide notice to consumers who get less favorable terms based on credit reports. It is the first enforcement case brought under the relatively new law. According to the FTC, TWC was checking credit reports of prospective customers and depending on the result it might require a deposit or prepay the first month's rent, requirements not made of others with better credit scores. It is not that TWC couldn't differentiate its charges, but it was required to notify its subscribers.