Tag Archives: court cases

Lawsuit Claims Three Credit Reporting Agencies Allegedly Violated FCRA by Reporting Old Debt

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Written By ESR News Blog Editor Thomas Ahearn

An Illinois woman has filed a lawsuit filed against the three major nationwide credit reporting agencies – Equifax, Experian, and TransUnion – claiming that they allegedly violated the federal Fair Credit Reporting Act (FCRA) by failing to observe her bankruptcy and reporting discharged debt, according to a report by the Madison-St. Clair Record. Continue reading

Court Finds Sending Copy of Background Check and Summary of Rights Satisfies FCRA Pre-Adverse Action Requirements

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Written By ESR News Blog Editor Thomas Ahearn

A Pennsylvania Court has found in the case of Wright v. Lincoln Property Company that an employer who considered rejecting an applicant based on a background check and followed “pre-adverse” action rules under the federal Fair Credit Reporting Act (FCRA) that requires employers to send applicants a copy of their background checks and a summary of rights under the FCRA prior to taking “adverse action” is only obligated to send the applicant these documents and whether the applicant receives them is irrelevant. Continue reading

Court Finds Complete and Up To Date Requirement of FCRA Does Not Include Accuracy Component

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Written By ESR News Blog Editor Thomas Ahearn

A District Court in Pennsylvania has ruled that the “complete and up to date” requirement of the federal Fair Credit Reporting Act (FCRA) that consumer reporting agencies (CRAs) must follow when performing background checks does not include an “accuracy” component as well. Continue reading

FCRA Lawsuits Will Remain a Potential Threat to Employers After Supreme Court Decision in Spokeo Case

 

Written By ESR News Blog Editor Thomas Ahearn

On May 16, 2016, the Supreme Court of the United States ruled in the case of Spokeo, Inc. v. Robins that consumers must prove “concrete injury” in class action lawsuits for alleged “bare” violations of a federal statute. However, the fact that class action lawsuits involving the federal Fair Credit Reporting Act (FCRA) that governs background checks in the U.S. will remain a potential threat to employers despite recent court rulings dismissing FCRA lawsuits and citing the Spokeo decision as the reason is Trend Number 8 in the Employment Screening Resources® (ESR) 10th annual ‘ESR Top Ten Background Check Trends’ for 2017. Continue reading

Jury Awards Over $1 Million in Negligent Hiring Lawsuit Involving Workplace Violence

 RecruitingHiring

Written By ESR News Blog Editor Thomas Ahearn

A jury in Texas has awarded more than $1 million in a negligent hiring lawsuit filed against a company on behalf of an employee and war hero who was killed on the job by a co-worker that claimed the company knowingly providing an unsafe workplace for employees, according to a report from The Orange Leader. Continue reading

FCRA Lawsuit against Bank of America over Background Checks Dismissed

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Written By ESR News Blog Editor Thomas Ahearn

A California federal judge has dismissed a class action lawsuit filed against Bank of America Inc. and other defendants over alleged violations of the federal Fair Credit Reporting Act (FCRA) during background checks on contract workers by ruling the plaintiff lacked standing to bring any claims, according a blog on the Consumer Financial Services Law Monitor website. Continue reading

Man Misidentified as Criminal on Background Check Awarded Over $3 Million

 FCRA-graphic

Written By ESR News Blog Editor Thomas Ahearn

A Florida man who was denied jobs after a background check company misidentified him twice as a criminal – one who just happened to have the same birth date and a similar name – has won a nearly $3.6 million verdict in federal court, according to a report on the Gainesville.com website. Continue reading

Court Rules DOT Screening Program Does Not Violate Privacy of Drivers

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Written By ESR News Blog Editor Thomas Ahearn

A federal appeals court has ruled the United States Department of Transportation (DOT) did not violate the privacy of truck drivers by providing information about their non-serious safety violations to prospective employers, a decision that leaves intact the Pre-Employment Screening Program (PSP) established by the DOT’s Federal Motor Carrier Safety Administration (FMCSA) in 2010. 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

Court Rules Structure of CFPB is Unconstitutional

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Written By ESR News Blog Editor Thomas Ahearn

The U.S. Court of Appeals for the District of Columbia Circuit has ruled the structure of an independent agency established by Congress in the Dodd-Frank Act of 2010 – the Consumer Financial Protection Bureau (CFPB) – is unconstitutional and that the current CFPB Director “enjoys more unilateral authority than any other officer in any of the three branches of the U.S. Government, other than the President.” Continue reading