Tag Archives: CFPB

CFPB Orders Background Check Firms to Pay $13 Million for Alleged Inaccurate Reports

CFPB

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) is ordering two of the nation’s largest employment background check firms to correct their practices, provide $10.5 million in relief to harmed consumers, and pay a $2.5 million civil penalty for allegedly failing to take steps to ensure the information they reported about job applicants was accurate, according to a news release on the CFPB website. Continue reading

CFPB Finds Complaints about Credit Reports Rising Sharply

 CreditReport

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has released its Monthly Complaint Report that found complaints about credit reports sharply increased compared to the prior month and the prior year. The CFPB Monthly Complaint Report can be found at: http://files.consumerfinance.gov/f/201508_cfpb_monthly-complaint-report-vol-2.pdf. Continue reading

Are Your Background Check Forms Up To Date?

Criminal-Background-Check

Written By ESR News Blog Editor Thomas Ahearn

In spring of 2015, the Consumer Financial Protection Bureau (CFPB) made some minor but nevertheless important modifications to a form critical to the employment screening background check process titled “A Summary of Your Rights Under the Fair Credit Reporting Act.” Continue reading

Consumer Reporting Fairness Act Would Help Fix Inaccurate Credit Reports

 CreditReport

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

New CFPB Report Reveals Top Consumer Complaints

 BP_FigureMagnifyingGlass

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) – the federal agency solely focused on consumer financial protection and consumer complaints – has released its initial Monthly Complaint Report to provide “a high-level snapshot of trends in consumer complaints.” Continue reading

CFPB Report Examines How CRAs Handle Consumer Disputes

 BP_FigureMagnifyingGlass

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has released its latest Supervisory Highlights report that shows CFPB supervisory resolutions resulted in remediation of $19.4 million to more than 92,000 consumers. Among the highlights of the 20-page report is a focus on how Consumer Reporting Agencies (CRAs) handle consumer disputes that question the accuracy and completeness of background check reports. Continue reading

FTC and CFPB Interpret FCRA Reporting for Non-Conviction Records

Blogs about FCRA

Written By ESR News Blog Editor Thomas Ahearn

The Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB) have filed a joint amicus brief advocating for the seven-year reporting period for non-conviction records found in the federal Fair Credit reporting Act (FCRA) to begin on date of the charge or filing and not on the date of the last action in the case. To view the entire amicus brief jointly filed by the FTC and the CFPB, click here. Continue reading

NAPBS Applauds NBC Today Show Report for Recognizing Importance of Employee Background Checks

The National Association of Professional Background Screeners (NAPBS®) applauds an NBC Today Show report by National Investigative Correspondent Jeff Rossen for emphasizing “the critically important role background screening plays in today’s business environment,” according to a press release from the NAPBS available at http://www.businesswire.com/news/topix/20130820006390/en. Continue reading

Allegation of Failure to Update FCRA Compliance Forms by National Retailer Leads to 3 Million Dollar Settlement

A large national retailer has settled an employment class action lawsuit for $3 million that alleged the company violated the federal Fair Credit Reporting Act (FCRA) by failing to send proper notices to nearly 65,000 plaintiffs who were job applicants. More detailed information about the settlement reached in Pitt v. KMart Corp., Case No. 11-cv-00697 is available at: http://www.archive.org/download/gov.uscourts.vaed.272989/gov.uscourts.vaed.272989.56.0.pdf. Continue reading

Background Screening Industry Faces Greater Scrutiny after Accuracy of Criminal Background Checks Questioned

In 2012, after reported cases of inaccurate criminal background checks costing job seekers employment, the background screening industry faced greater scrutiny over accuracy of reports. This increased attention included a Federal Trade Commission (FTC) report recommending regulations on data brokers, the FTC charging companies with alleged Fair Credit Reporting Act (FCRA) violations, a National Consumer Law Center (NCLC) report on inaccurate background checks, two New York Times editorials, the Consumer Financial Protection Bureau (CFPB) increasing supervision of background checks, and an NBC Today Show report on background check errors. In response, the National Association of Professional Background Screeners (NAPBS) refuted reports critical of the screening industry and pointed to an accreditation program created to improve accuracy. This focus on accuracy is Trend 1 of the 6th Annual ‘ESR Top Ten Background Check Trends for 2013’ available at http://www.esrcheck.com/Top-Ten-Background-Check-Trends-for-2013.php. Continue reading