Dollar General Settles FCRA Lawsuit for $4 Million

Class Action Lawsuit Blogs

Written By ESR News Blog Editor Thomas Ahearn

A class action lawsuit filed in Virginia federal court against discount retail chain Dollar General for alleged violations of the federal Fair Credit Reporting Act (FCRA) that claimed job applicants were sent outdated notices that a background check was performed will be settled for $4 million, according to a report from TopClassActions.com available at http://topclassactions.com/lawsuit-settlements/lawsuit-news/42336-dollar-general-4m-background-checks-settlement-reached/.

TopClassActions.com reports the settlement agreement against Dollar General was filed by plaintiffs Jonathan Marcum and Jackie E. Lewis who allege that “(a.) they were denied employment with the defendant because of their employment-purposed consumer report; (b.) either the adverse employment decision had been made before the plaintiffs received a copy of their report and summary of rights or the defendant did not provide these in a meaningful and reasonable time before this decision; and (c.) the Summary of Rights form defendant eventually sent was an outdated summary and not the current form required by both the [Consumer Financial Protection Bureau] and the [Federal Trade Commission].”

TopClassActions.com reports the class action lawsuit claimed Dollar General “willfully failed to comply with the disclosure and authorization requirements in [the FCRA] prior to obtaining a consumer report about him for employment purposes.” In addition, TopClassActions.com reports that Dollar General “denies any wrongdoing and any liability to plaintiffs or to the putative class members” even though the retail chain agrees to the pay a settlement with a total amount of $4.08 million. The Dollar General Class Action Lawsuit is Marcum v. Dolgencorp Inc., Case No. 3:12-cv-00108, in the U.S. District Court for the Eastern District of Virginia.

“Compliance with the federal Fair Credit Reporting Act is mission critical for employers,” says Attorney Lester Rosen, Founder and CEO of Employment Screening Resources (ESR) and author of ‘The Safe Hiring Manual,’ the first comprehensive guide for background checks. “The proprietary ESR Assured Compliance technology has FCRA and state law compliance built into the software.” For more information about ESR, call Toll Free 888.999.4474 or visit http://www.esrcheck.com/.