FCRA Consumer Litigation Filings Continue to Increase in February 2018

Written By ESR News Blog Editor Thomas Ahearn

In February 2018, Fair Credit Reporting Act (FCRA) cases led consumer litigation filings with 422 plaintiffs – nearly 60 percent higher than in February 2017 – while Telephone Consumer Protection Act (TCPA) cases and Fair Debt Collection Practices Act (FDCPA) cases declined, according to WebRecon LLC.

“This showcases an unmistakable trend in recent months where FCRA has broken out of the shadows to show new strength in the consumer litigation big picture,” according to WebRecon CEO Jack Gordon. “FCRA used to be the ugly stepchild to TCPA… That trend appears to have subsided.”

WebRecon reports there were 422 FCRA filings in February 2018 and 265 in February 2017, an increase of 59.2 percent. FCRA filings in February 2018 also rose 36.6 percent from the 309 FCRA filings in January 2018. More than one-third of FCRA lawsuits – 36.3 percent – were filed as putative class actions.

In January 2018, ESR News reported that filings under the FCRA – a federal law ensuring accuracy, fairness, and privacy of consumer information –increased 9.9 percent from 2016 to 2017, with FCRA filings increasing from 3,954 in 2016 to 4,346 in 2017, according to statistics from WebRecon LLC.

The fact FCRA lawsuits still target employers even after the U.S. Supreme Court ruled plaintiffs must prove “concrete injury” for alleged “bare” violations of a federal statute is one of the “ESR Top Ten Background Check Trends” selected by background check firm Employment Screening Resources® (ESR).

“In no way did the Supreme Court decision in Spokeo v. Robins mean employers could relax obligations for FCRA compliance,” explains ESR founder and CEO Attorney Lester Rosen. “Employers must ensure they comply with the FCRA and work with a background screening firm that understands the FCRA inside and out.”

ESR Whitepapers on FCRA Lawsuits

Employment Screening Resources® (ESR) offers two complimentary whitepapers – “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” and “Common Ways Consumer Reporting Agencies are Sued Under the FCRA” – to help employers avoid FCRA class action lawsuits.

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.

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