Common Ways Consumer Reporting Agencies are Sued Under the FCRA
There are numerous reasons why prospective employees may seek to sue Consumer Reporting Agencies (“CRAs”) for alleged violations of the Fair Credit Reporting Act (FCRA), the federal law that controls background screening. This complimentary whitepaper written with the help of Lester Rosen, founder and CEO of Employment Screening Resources (ESR), will describe eighteen practices that can give rise to lawsuits against CRAs. Keeping these potential pitfalls in mind is vital for employers when choosing a CRA to help you navigate this complex and legally-sensitive area.
Background screening occurs at the intersection of security, human resources, and labor law. As a result, there is a complex web of legislation, litigation, and regulation at multiple levels that dictates specifically what CRAs can and cannot do in their background checks. That means it is of critical importance for employers to carefully select a CRA that understands and assists the employer with legal compliance. Although a CRA cannot give legal advice, a competent CRA should understand the rules and regulations governing this area and can assist the employer in recognizing potential compliance issues. CRAs and the employers they work with can be faced with lawsuits leading to expensive settlements or they could even be found liable for punitive damages if compliance is not a priority.