Tag Archives: credit reports

FTC Study on Credit Report Accuracy Finds One in Five Consumers has Error on Their Credit Reports

A Federal Trade Commission (FTC) study of accuracy in the U.S. credit reporting industry has found that one in five consumers – an estimated 40 million Americans, according to a ‘60 Minutes’ report on the FTC study – had an error on at least one of their three major credit reports while five percent had significant errors on one of their credit reports that could result in less favorable terms for auto loans and insurance. The full text of the FTC report is available at http://www.ftc.gov/os/2013/02/130211factareport.pdf. Continue reading

California Background Checks Discussed by Safe Hiring Expert in Live Webinar on November 14

Attorney and safe hiring expert Lester Rosen, Founder and CEO background check firm Employment Screening Resources (ESR), will present a live webinar titled ‘Background Checks in California: Know the Rules of the Road Before Getting on the Freeway’ with HR Hero® on Wednesday, November 14, 2012 from 10:30 a.m. to 12:00 p.m. Pacific Time. To register for the 90 minute webinar, which has been approved for up to 1.5 recertification credit hours through the HR Certification Institute (HRCI), visit: http://store.hrhero.com/events/audio-conferences-webinars/ca-background-checking. Continue reading

Consumer Financial Protection Bureau Begins Accepting Credit Reporting Complaints from Consumers

The Consumer Financial Protection Bureau (CFPB) has begun to accept consumer complaints about credit reporting, marking the first time consumers will receive individual-level credit reporting complaint assistance at the federal level. The CFPB already handles complaints on credit cards, mortgages, bank accounts, and consumer and private student loans. To file a credit reporting complaint, consumers may call 1-855-411-CFPB (2372) Toll Free or file online at http://www.consumerfinance.gov/complaint/. Continue reading

CFPB Releases Examination Procedures for Larger Consumer Reporting Agencies to Verify Companies are Complying with Law

The Consumer Financial Protection Bureau (CFPB) has released the examination procedures to be used in examining larger credit bureaus and Consumer Reporting Agencies (CRAs) so CFPB examiners may verify that these companies are complying with requirements of federal consumer financial law. The CFPB’s authority to supervise larger consumer reporting companies takes effect September 30, 2012. The ‘Examination Procedures for Larger Participants of the Consumer Reporting Market’ is available at: http://files.consumerfinance.gov/f/201209_cfpb_Consumer_Reporting_Examination_Procedures.pdf. Continue reading

EEOC Must Testify On Own Use of Criminal Background Checks and Credit Histories for Employment Screening

A federal district Court in Maryland has ruled that an employer sued by the Equal Employment Opportunity Commission (EEOC) for alleged discriminatory use of criminal background checks and credit histories in hiring may compel the EEOC the testify regarding the agency’s own use of criminal records and credit information for employment screening. The ruling EEOC v. Freeman, D. Md., No. 09-2573, 8/14/12 is available here: http://op.bna.com/dlrcases.nsf/id/kmgn-8x7jwz/$File/freemanprotect.pdf. Continue reading

Credit Background Checks of Applicants Not Used by More than Half of Organizations According to Survey

A survey from the Society for Human Resource Management (SHRM) “Background Checking — The Use of Credit Background Checks in Hiring Decisions” indicates that more than half of the responding organizations – 53 percent – do not conduct credit background checks on any of their job candidates, a noticeable  increase from 40 percent in 2010 and from 39 percent in 2004. The survey of randomly selected HR professionals from SHRM’s membership is available at: http://www.shrm.org/Research/SurveyFindings/Articles/Pages/CreditBackgroundChecks.aspx. Continue reading

Consumer Financial Protection Bureau Adopts Rule to Supervise Larger Credit Reporting Companies

The Consumer Financial Protection Bureau (CFPB) has adopted a rule to begin supervising larger consumer reporting agencies – including the “big three” credit reporting companies Equifax, Experian, and TransUnion – for the first time at the federal level, according to a CFPB press release ‘Consumer Financial Protection Bureau to supervise credit reporting.’ The rule outlining the CFPB’s supervision of larger consumer reporting agencies, which will be effective September 30, 2012, is available here: ‘Defining Larger Participants of the Consumer Reporting Market.’ Continue reading

Vermont to Prohibit Employers from Using Credit Reports for Employment Decisions Starting July 1

Continuing the trend of states stopping employers from routinely obtaining credit reports on applicants and employees to use in making employment decisions, Vermont Act No. 154 (S. 95) prohibits employers in the state, subject to various exceptions, from using or inquiring into credit reports or credit histories of job applicants and employees in the employment context and further prohibits discriminating against individuals based on their credit information. Vermont is the eighth state to restrict the use of credit reports by employers, joining California, Connecticut, Hawaii, Illinois, Maryland, Oregon, and Washington. The text of the new law, which goes into effect July 1, 2012, is available at: http://www.leg.state.vt.us/docs/2012/bills/Passed/S-095.pdf. Continue reading

Top 10 Trends for Background Checks in 2012 Reviewed in PIHRA Webinar on May 18

To help Human Resources professionals understand the current trends, best practices, and legal developments affecting due diligence and hiring, Attorney Lester Rosen, CEO of Employment Screening Resources (ESR), will present a webinar titled ‘The Top 10 Trends for Background Checks in 2012’ for the Professionals In Human Resources Association (PIHRA) on Friday, May 18, 2012 from 12:00 PM to 1:00 PM Pacific Time. To register for this program, which is approved for 1.0 general recertification credit hours toward PHR, SPHR, and GPHR recertification through the HR Certification Institute, visit: PIHRA Webinar ‘The Top 10 Trends for Background Checks in 2012’. Continue reading

California Bill SB 1384 Would Authorize Consumers to Place Security Freezes on Consumer Reports

While existing law allows California consumers to place security freezes on their credit files maintained by the three major credit reporting agencies Equifax, Experian, and TransUnion, new legislation – Senate Bill 1384 (SB 1384) ‘Consumer Reporting Agencies Act’ – would authorize consumers to place similar security freezes on certain other consumer reports containing private financial information. Introduced by State Senator Joe Simitian (D-Palo Alto), SB 1384 defines a “nationwide specialty consumer reporting agency” and “consumer file” for purposes of California law and authorizes consumers to place security freezes on consumer files compiled and maintained by nationwide specialty consumer reporting agencies. The full text of the bill is here: California SB 1384. Continue reading