Partial Settlement Reached with Equifax and TransUnion Over Alleged FCRA Violations with Credit Files

Gavel and Scales

Written By ESR News Blog Editor Thomas Ahearn

A partial settlement has been reached in a lawsuit against three major credit reporting agencies – Equifax, Experian, and TransUnion – over alleged violations of the federal Fair Credit Reporting Act (FCRA) due to inaccurate credit files, with a notice stating that a partial settlement was reached between the plaintiffs and Equifax and TransUnion, according to a report from the West Virginia Record.

Plaintiffs Bryant Creighton and Beth Ann Creighton filed a complaint against Equifax, Experian, and TransUnion in U.S. District Court for the Northern District of West Virginia claiming that the defendants failed to establish and follow “reasonable procedures to assure maximum possible accuracy in the preparation of the credit report and credit files they published,” the West Virginia Record reported.

The plaintiffs claimed in their lawsuit that “between June 27, 2017, and June 15, 2018 they suffered damage by loss of credit, embarrassment of credit denials and loss of the ability to purchase and benefit from credit when the defendants failed to delete inaccurate information in the plaintiff’s credit files” and hold the defendants responsible, the West Virginia Record reported.

Passed by Congress in 1970, the FCRA protects consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. Under the FCRA: “Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.”

The fact that employers are targeted in FCRA lawsuits even after the U.S. Supreme Court ruled plaintiffs must prove “concrete injury” for alleged “bare” violations of federal statutes such as the FCRA is one of the “ESR Top Ten Background Check Trends” selected by background check firm Employment Screening Resources® (ESR). For a list of trends, visit www.esrcheck.com/Tools-Resources/ESR-Top-Ten-Background-Check-Trends/.

Employment Screening Resources® (ESR) also offers two complimentary white papers – “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. To learn more about background check services from 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.

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