Tag Archives: adverse action

CFPB Supervisory Highlights for Summer 2016 Include FCRA Adverse Action Notice Issues

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Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) Supervisory Highlights for Summer 2016 publication features some issues related to adverse action notices that the federal Fair Credit Reporting Act (FCRA) requires users of background check reports to send to subjects of those reports when any adverse (i.e. negative) action is taken against them based on information contained in the background check report. Continue reading

Wells Fargo Settles Background Check Lawsuit for $12 Million

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Written By ESR News Blog Editor Thomas Ahearn

Wells Fargo Bank has agreed to a settlement of $12 million to resolve a class action lawsuit that claimed the financial institution allegedly violated the federal Fair Credit Reporting Act (FCRA) after denying employment to a job applicant based on the results of a background check report. Continue reading

Amazon Motion of Summary Judgement Denied in FCRA Lawsuit

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Written By ESR News Blog Editor Thomas Ahearn

A judge in Washington state has denied a motion of summary judgement filed by Amazon.com and a staffing company in a class action lawsuit claiming the online retail giant violated the federal Fair Credit Reporting Act (FCRA), according to a TopClassActions.com report. Continue reading

Judge Rules Healthcare Provider Complied With FCRA in Background Check Lawsuit

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Written By ESR News Blog Editor Thomas Ahearn

A Pennsylvania federal judge has ruled in a class action lawsuit over background checks that Genesis Healthcare LLC complied with the federal Fair Credit Reporting Act (FCRA) when obtaining the criminal history of a job applicant from a third party background check provider. Continue reading

Amazon Faces Class Action Lawsuit for Alleged FCRA Violations

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Written By ESR News Blog Editor Thomas Ahearn

A class action lawsuit filed in Tampa, Florida claims the nation’s largest online retailer Amazon.com allegedly violated the federal Fair Credit Reporting Act (FCRA) by misusing consumer credit reports for hiring, termination, and assignment decisions, according to a report from Courthouse News Service. Continue reading

Class Action Lawsuit Claims Bank Violated FCRA with Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

A federal court in Virginia has denied a motion for summary judgment in a class action complaint that claims Wells Fargo Bank violated the Fair Credit Reporting Act (FCRA) when performing background checks on job applicants by coding some as “ineligible” prompting adverse action and including a release of liability in authorization forms. Continue reading

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. Continue reading

FCRA Class Action Lawsuit Filed Over Background Checks

Written By Thomas Ahearn

Class Action Lawsuit BlogsA Fair Credit Reporting Act (FCRA) class action lawsuit filed in a Georgia federal court alleges that a rent-to-own retailer ran background checks and credit reports on employees and job applicants without providing copies of the reports and took adverse employment action against applicants and employees without giving them access to the reports or informing them of their rights under the FCRA. A copy of the Complaint is available at http://thejordanfirm.com/wp-content/uploads/2014/07/1-main.pdf. Continue reading

Background Check Forms Under Increased Scrutiny

Written By Thomas Ahearn

homepage-legalA federal court decision from a District Court in Pennsylvania granted summary judgment in favor of a class of more than 1,800 job applicants and ruled the employer’s background check consent and disclosure form was improper since the form contained a waiver of liability even though such language is a common practice among some businesses. The ruling in the case of Reardon v. Closetmaid Corporation is available at http://docs.justia.com/cases/federal/district-courts/pennsylvania/pawdce/2:2008cv01730/89928/157. Continue reading

New Class Action Lawsuit against Major Financial Institution for FCRA Violations Demonstrates Importance of Legal Compliance

A class action case filed against a large financial institution – one of the nation’s top 10 banks – shows once again that legal compliance is a critical part of any background screening program.  The lawsuit was filed on behalf of an employee alleging violations of the federal Fair Credit Reporting Act (FCRA). According to a press release from the Attorneys for the Plaintiff, the lawsuit alleges that the financial institution obtained background checks in violation of the FCRA and failed to provide required notices.  The Plaintiff seeks to represent a class of all of the financial institution’s employees and job applicants for the past three years. Continue reading