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United States Sues Time Warner Cable

MANHATTAN (CN) - Time Warner Cable violated a slew of federal laws by failing to tell customers it uses risk-based pricing: giving less favorable terms to people with poor credit ratings, the United States claims in Federal Court.

For at least 3 years, Time Warner has required customers with low credit scores to pay a deposit to get service, but has not required that of people with better credit scores, the USA says on behalf of the Federal Trade Commission.

Whether that's legal or not, federal law requires Time Warner Cable to inform customers that it required a deposit because of their credit score, and Time Warner hasn't done that since Jan. 1, 2011, Uncle Sam says. That's a violation of the Risk-Based Pricing Rule.

Time Warner also violated the FTC Act, the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act, the government says. It seeks civil penalties and an injunction.

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