Written By ESR News Blog Editor Thomas Ahearn
The Federal Trade Commission (FTC) – the agency that helps to protect American consumers – has adjusted the maximum civil penalty dollar amounts for violations of laws enforced by the FTC, including the federal Fair Credit Reporting Act (FCRA) that governs background checks in the United States.
FTC Penalty for FCRA Violations
The Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 requires the FTC to issue adjustments in the Federal Register to increase maximum civil penalty amounts under their jurisdiction for inflation every January. The following adjusted amount for the FCRA took effect on February 14, 2019.
- Section 621(a)(2) of the Fair Credit Reporting Act 15 U.S.C. 1681s(a)(2) (knowing violations of the Fair Credit Reporting Act) increases from $3,895 to $3,993.
The cost-of-living adjustment is based on the percent change between the U.S. Department of Labor (DOL) Consumer Price Index for all-urban consumers (“CPI-U”) for the October preceding the date of the adjustment and the CPI-U for October of the prior year. The adjustment multiplier for 2019 is 1.02522.
The FTC was closed on December 28, 2018, due to a lapse in funding caused by the longest shutdown in the history of the United States federal government that lasted 35 days from December 22, 2018, until January 25, 2019. To learn more about the FTC, visit www.ftc.gov.
Enacted by Congress in 1970, the FCRA 15 U.S.C. § 1681 promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRAs) and also protects consumers from the willful and/or negligent inclusion of inaccurate information in consumer reports.
ESR Follows FTC Regulations for Background Checks
Employment Screening Resources® (ESR) – a leading global background check firm – adheres to FTC regulations for background checks and was one of the first adopters of the Privacy Shield Framework which the FTC helps to enforce. For more information about ESR, visit www.esrcheck.com.
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.
© 2019 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.