Avis Settles Class Action Lawsuit Over Alleged FCRA Violations with Background Checks for $2.7 Million

FCRA-graphic

Written By ESR News Blog Editor Thomas Ahearn

Avis has agreed to pay $2.7 million to settle a class action lawsuit that claims the car rental company allegedly violated the federal Fair Credit Reporting Act (FCRA) when conducting background checks on job applicants for employment purposes, according to a report on the TopClassActions.com website.

Top Class Actions reports plaintiff Angela Fuller claimed that when the defendant Avis conducted a background check on her in 2015 “she did not get the job because of a mistake in her consumer report that listed a 1985 infraction as a conviction.” She claimed consumer reports are only supposed to list convictions for the past seven years.

Top Class Actions reports that Avis has agreed to pay cash or another form of compensation under the terms of the settlement. Although the FCRA has a two-year statute of limitations, even those whose claims fall outside of the two-year limit will receive compensation under the Avis class action lawsuit settlement:

  • Job applicants with Avis who had a credit report pulled by the company between June 9, 2013 and April 28, 2016, will receive a $45 payment.
  • Those who lost or were not offered a job based on the consumer report between June 9, 2016 and April 28, 2016, will receive a $650 payment in addition to the $45 payment.
  • Those who had a credit report pulled by Avis outside of the statute of limitations will receive up to two $20 vouchers from the car rental company for a weekday car rental.

Top Class Actions reports that the defendants “deny that they have committed any wrongful acts or violations of law or that it has any liability to the Plaintiff or the Settlement Class” and that the plaintiff believes the defendants violated the FCRA but “she also recognizes the risk that the Court or a jury might not make that finding.”

The lawsuit is Fuller v. Avis Budget Car Rental LLC, et al., Case No. 2:15-cv-03856, in the U.S. District Court for the District of New Jersey. The complete Top Class Actions article is available at https://topclassactions.com/lawsuit-settlements/lawsuit-news/826564-avis-settles-job-applicant-background-check-class-action-2-7m/.

Enacted in 1970, the FCRA is federal legislation that promotes the accuracy, fairness, and privacy of consumer information in the files of Consumer Reporting Agencies (CRAs) and protects consumers from the willful and/or negligent inclusion of inaccurate information in their background check reports.

NOTE: Employment Screening Resources® (ESR) reminds readers that allegations alone made in class action lawsuits are not proof that a business or person violated any law, rule, or regulation.

ESR WHITEPAPER ON COMMON REASONS FOR FCRA LAWSUITS

Common Ways Employees Sue Employers Under FCRA

Employment Screening Resources® (ESR) founder and CEO Attorney Lester Rosen has written a whitepaper entitled “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” that shows the many reasons why employers are sued for alleged violations of the FCRA.

In the whitepaper, Rosen – author of “The Safe Hiring Manual” – explains how most employers are sued for violating simple “FCRA 101” rules that are clearly set out in the law. The complimentary whitepaper is available at www.esrcheck.com/Whitepapers/Ways-Employees-Sue-Employers-Under-FCRA/.

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

© 2017 Employment Screening Resources® (ESR) – Making copies or using of any part of the ESR News Blog or ESR website for any purpose other than your own personal use is prohibited unless written authorization is first obtained from ESR.