Report Finds FCRA Lawsuits Have Increased on Annual Basis Since 2011

Written By ESR News Blog Editor Thomas Ahearn

Consumer complaints involving the federal Fair Credit Reporting Act (FCRA) reached 4,531 in 2018, and have risen in number every year since 2011, making the FCRA the only consumer statute that has continued to increase in lawsuits filed, according to the latest report from WebRecon CEO Jack Gordon.

FCRA Lawsuits Increased Every Year Since 2011

The WebRecon report for December 2018 revealed FCRA complaints increased 4.3 percent from 2017 to 2018, as 4,531 FCRA complaints were filed from January 1, 2018, to December 31, 2018, while 4,343 FCRA complaints were filed from January 1, 2017, to December 31, 2017. The full report is available here.

Enacted by Congress in 1970, the FCRA 15 U.S.C. § 1681 promotes the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRAs) and also protects consumers from the willful and/or negligent inclusion of inaccurate information in consumer reports.

FCRA lawsuits that have settled for millions of dollars include Delta Air Lines agreeing to pay $2.3 million in January 2019, Omincare paying a $1.3 million settlement in August 2018, a subsidiary of PepsiCo paying $1.2 million in July 2018, and Frito-Lay Inc. paying a $2.4 million settlement in April 2018.

Costly class action lawsuits involving the FCRA are one of the main compliance concerns for employers performing background checks and this trend was chosen by global background check firm Employment Screening Resources® (ESR) as one of the “ESR Top Ten Background Check Trends” for 2019.

ESR White Papers on FCRA Lawsuits

Employment Screening Resources® (ESR) offers two complimentary white papers that examine the many causes behind FCRA lawsuits: “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” and “Common Ways Consumer Reporting Agencies are Sued Under the FCRA.”

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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