Tag Archives: Fair Credit Reporting Act (FCRA)

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

Starbucks Faces Class Action Lawsuit for Allegedly Inaccurate Background Check

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Written By ESR News Blog Editor Thomas Ahearn

Starbucks Corp. is facing a class action lawsuit filed by a Colorado man who claims he was denied a job based on an allegedly inaccurate background check and is suing the coffeehouse chain for violations of the federal Fair Credit Reporting Act (FCRA), according to a report from Top Class Actions. 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

FTC Issues New Guidance for Tenant Background Screening

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Written By ESR News Blog Editor Thomas Ahearn

The Federal Trade Commission (FTC) has issued new guidance for landlords who use background checks to screen tenants and for tenant background screening companies to help them comply with the federal Fair Credit Reporting Act (FCRA) which the FTC helps enforce. 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

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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

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

Employers Should Not Let Guard Down on FCRA Compliance in Wake of Supreme Court Spokeo Ruling

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Written By ESR News Blog Editor Thomas Ahearn

Employers should not “let their guard down about complying with background screening rules” such as the federal Fair Credit Reporting Act (FCRA) despite recent court rulings such as the dismissal of a proposed FCRA class action lawsuit against transportation network company Lyft, Inc. by a federal judge who cited a decision by the Supreme Court in the case of Spokeo, Inc. v Robins as a reason for the decision, according to an article on the Society for Human Resource Management (SHRM) website. Continue reading