Hertz Faces Lawsuit for Alleged FCRA Violations

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Written By ESR News Blog Editor Thomas Ahearn

A class action lawsuit filed in San Francisco federal court claims Hertz Corporation and the Consumer Reporting Agency (CRA) providing background check reports to the rental car giant allegedly “acted willfully in violating the requirements” of the Fair Credit Reporting Act (FCRA) when performing criminal background checks on job applicants.

According to the 23-page complaint, in May 2014 the Plaintiff received a conditional offer of employment for a position with a Hertz-branched rental car location at the San Francisco International Airport. However, after being scheduled to begin working in June 2014, the Plaintiff received a phone call and email from a Hertz field recruiter informing him he would not be hired “because of the criminal history information contained in his background check” and that the decision was based on “Hertz policy.”

Specifically, the lawsuit alleges that Hertz “systematically violates section 1681b(b)(3)(A) of the FCRA by using consumer reports to make adverse employment decisions without first providing the applicant who is the subject of the report with sufficient and timely notification of its intent to take an adverse action, a copy of the report, and a summary of the applicants’ rights under the FCRA.”

Likewise, the complaint alleges the CRA providing background check reports to Hertz “also violates section 1681b(b)(3)(A) of the FCRA by failing to timely provide applicants with appropriate pre-adverse action disclosures, including a copy of the relevant consumer report and a written description of the applicant’s rights under the FCRA, in violation of FCRA.”

The class action lawsuit further claims that Hertz “fails to inform job applicants in a clear and conspicuous disclosure in writing, in a document that consists solely of the disclosure, that it may procure a consumer report for employment purposes, in violation of U.S.C. § 1681b(b)(2)(A)(i).” In addition, Hertz also “fails to obtain authorization of job applicants in writing to procure such consumer reports, in violation of U.S.C. § 1681b(b)(2(A)(ii).”

The lawsuit also claims the CRA providing background check reports to Hertz “violated the FCRA by failing to notify job applicants when it furnishes consumer reports that are likely to adversely affect the applicants’ ability to obtain employment and failing to follow strict procedures to ensure the timely and complete nature of those reports, in violation of U.S.C. § 1681k(a).”

The case is Lee v. The Hertz Corporation, et al. No. 3:15-cv-02545, in the U.S. District Court for the Northern District of California. A copy of the complaint is available at http://www.esrcheck.com/file/Lee-v-Hertz-Complaint.pdf. For more information about class action lawsuits involving the FCRA, please visit http://www.esrcheck.com/wordpress/tag/class-action-lawsuits/. To learn more about background checks, please call toll free 888.999.4474 or visit http://www.esrcheck.com.

A Note about FCRA Class Action Lawsuits

Employment Screening Resources (ESR) reminds readers that any allegations made in a class action lawsuit are not proof that a business or Consumer Reporting Agency (CRA) violated any law, rule, or regulation. There have been only allegations in the pleading stage and no factual adjudications. The fact that a demand for a jury trial has been made in the class action lawsuit does not mean there has been a finding of any liability or that any facts have been determined or any settlement entered into at the current time.

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