Tag Archives: Banks and financial institutions

FINRA Fines J.P. Morgan Securities $1.25 Million for Failing to Conduct Adequate Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

On November 21, 2017, the Financial Industry Regulatory Authority (FINRA) – which regulates brokerage firms doing business in the U.S. – announced it had fined J.P. Morgan Securities, LLC $1.25 million for failing to conduct adequate background checks on approximately 8,600, or 95 percent, of its non-registered associated persons from January 2009 to May 2017, according to a news release from FINRA. Continue reading

CFPB Orders Bank to Pay $4.6 Million Penalty for Violating FCRA Requirements for Checking Account Screening Reports

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Written By ESR News Blog Editor Thomas Ahearn

On August 2, 2017, the Consumer Financial Protection Bureau (CFPB) ordered JPMorgan Chase Bank, N.A. to pay a $4.6 million penalty for failing to comply with obligations outlined in the federal Fair Credit Reporting Act (FCRA) related to the accuracy of information about consumer checking account behavior provided for checking account screening reports, according to a news release on the CFPB website. Continue reading

Wells Fargo Sued by Former Employees Fired Over Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

In February of 2017, nearly a dozen former employees of Wells Fargo bank filed a lawsuit in a South Dakota District federal court that claimed they were fired from their jobs for minor criminal charges already disclosed when they were originally hired after Wells Fargo conducted background checks on them to comply with a 2008 federal law that bars “banks and mortgage lenders from employing people convicted of crimes involving dishonesty,” according to a report from Argus Leader Media. Continue reading

Financial Institutions Will Seek Stronger Security Measures from Screening Providers including SOC 2 Reports and NAPBS Accreditation

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Written By ESR News Blog Editor Thomas Ahearn

With data breaches front page news in 2016, industries dealing with sensitive and confidential information – especially in the financial sector – know ensuring data security from third party service providers is mission critical. The fact that businesses including banks and financial institutions will seek stronger security measures such as SSAE 18 Service Organization Control (SOC) 2® reports and accreditation from National Association of Professional Background Screeners (NAPBS®) from screening providers is Trend Number 3 in the Employment Screening Resources® (ESR) 10th annual ‘ESR Top Ten Background Check Trends’ for 2017. Continue reading

JPMorgan Chase Granted Summary Judgment in FCRA Class Action Lawsuit over Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

The U.S. District Court for the District of Arizona has granted JPMorgan Chase a summary judgment motion in a class action lawsuit that claimed the banking and financial services company violated the Fair Credit Reporting Act (FCRA) when obtaining Federal Bureau of Investigation (FBI) background checks, according to an article on the website of international law firm Troutman Sanders LLP. Continue reading

Wells Fargo Fined $185 Million for Secretly Opening Unauthorized Accounts

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Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has fined Wells Fargo Bank, N.A. $100 million – the largest penalty the CFPB ever imposed – as part of a total fine of $185 million “for the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts,” according to a CFPB press release. Continue reading

Over Five Percent of Workers Turned Down for Jobs Due to Financial Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

A survey of more than 1,100 workers conducted by the National Financial Educators Council (NFEC) found 5.2 percent of respondents reported they were turned down for jobs due to their financial background while 26.3 percent reported employers ran financial background checks on them. 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

Banks Have Special Obligation to Perform Background Checks when Hiring

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Written By ESR News Blog Editor Thomas Ahearn

Banks and financial entities have a special obligation to exercise care when hiring due to regulations and the need to maintain a workforce that clients will trust. To help with this task, Attorney Lester Rosen, founder and CEO of Employment Screening Resources (ESR), will present a Greg Souther Bank Webinar titled “Who is Your Bank Hiring: Trends, Legal Developments and Regulatory Obligations for Employment Background Checks” on Tuesday, November 17, 2015 from 2 PM to 4 PM Eastern Time (11AM to 1 PM Pacific Time). Continue reading

Consumer Reporting Fairness Act Would Help Fix Inaccurate Credit Reports

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Written By ESR News Blog Editor Thomas Ahearn

Legislation introduced in the U.S. Senate – S. 1773 – the “Consumer Reporting Fairness Act of 2015” – would require creditors to inform consumer reporting agencies (CRAs) that certain debts have been discharged in bankruptcy cases, making it easier for consumers who rid themselves of credit card debt to fix inaccurate credit reports that do not reflect a clean financial slate. The text of S. 1773 is available at https://www.congress.gov/bill/114th-congress/senate-bill/1773/text. Continue reading