Tag Archives: Fair Credit Reporting Act (FCRA)

Inaccurate Background Check Leads Applicant to File Class Action Lawsuit against Prospective Employer

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Written By ESR News Blog Editor Thomas Ahearn

A Booneville, Indiana woman who was shocked to learn she would not be hired for a nursing job when an employment background check report revealed that she had “multiple felonies” – even though she insists she has “a squeaky clean criminal record” – has filed a class action lawsuit against her prospective employer that requested the background check, according to a story from The Indianapolis Star. Continue reading

Judge Dismisses FCRA Lawsuit Involving Background Checks

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Written By ESR News Blog Editor Thomas Ahearn

In March 2017, a federal judge in Minnesota dismissed a class action lawsuit where a woman claimed that her former employer and its related entities “willfully” violated the federal Fair Credit Reporting Act (FCRA) even though she said she did not suffer any “actual damages” but only “informational damages.” Continue reading

FTC Tells Employers to Keep FCRA Required Disclosures Simple for Background Screening Reports on Job Applicants

FTC Blog about Background Screening Disclosures

Written By ESR News Blog Editor Thomas Ahearn

The Federal Trade Commission (FTC) has published a blog entitled “Background checks on prospective employees: Keep required disclosures simple” to help employers understand requirements of the Fair Credit Reporting Act (FCRA) when procuring background screening reports on job applicants from third party screeners. Continue reading

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

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

CFPB Fines Credit Reporting Agency $3 Million for Deceiving Consumers about Credit Scores

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Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has ordered one of the nation’s three largest credit reporting agencies, Experian, to pay a civil penalty of $3 million for deceiving consumers about the use of credit scores it sold to them, according to a report on the CFPB website. 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

UPS Faces FCRA Class Action Lawsuit Over Alleged Background Check Violations

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Written By ESR News Blog Editor Thomas Ahearn

United Parcel Service (UPS) of America Inc. faces a class action lawsuit that claims UPS allegedly violated the federal Fair Credit Reporting Act (FCRA) by using background checks for employment without providing the results to job applicants or employees, according to a report on the Top Class Actions website. Continue reading

FTC Reminds Users of Consumer Reports of their Obligations Under the FCRA

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Written By ESR News Blog Editor Thomas Ahearn

A Federal Trade Commission (FTC) blog entitled ‘Background checks? Don’t double-dip.’ reminds users who receive information from Consumer Reporting Agencies (CRAs) that compile consumer reports containing the employment, income, and criminal history of consumers that they must comply with the federal Fair Credit Reporting Act (FCRA) and not “double-dip” and get a report for one purpose but use if for a different purpose. Continue reading

Appeals Court Rules Employer Willfully Violated FCRA with Liability Waiver on Background Check Disclosure Document

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Written By ESR News Blog Editor Thomas Ahearn

On January 20, 2017, the Ninth Circuit Court of Appeals ruled that employers can “willfully” violate the federal Fair Credit Reporting Act (FCRA) if they provide job applicants with a disclosure that a background check may be obtained for employment purposes that also includes a liability waiver for employers and others. Continue reading