Fair Credit Reporting Act (FCRA)

Written By ESR News Blog Editor Thomas Ahearn

Consumer litigation involving the federal Fair Credit Reporting Act (FCRA) was up 9.3 percent from August 2020 to September 2020, up 5.5 percent from September 2019 compared to September 2020, and up 3.8 percent from January to September 2020 compared to January to September 2019, according to a WebRecon LLC report.

“The clear winner in consumer litigation continues to be the Fair Credit Reporting Act, which has been the most consistently increasingly used consumer statute of the last couple of years,” WebRecon Chief Executive Officer (CEO) Jack Gordon stated in the report titled “WebRecon Stats for September 2020: Another Mixed Bag…”

WebRecon reported 458 FCRA filings in September 2020 and 419 in August 2020, an increase of 9.3 percent. FCRA filings in September 2020 rose 5.5 percent from 434 filings in September 2019. FCRA filings January to September 2020 numbered 3883, 3.8 percent higher than 3742 FCRA filings from January to September 2019.

Enacted by Congress in 1970, the FCRA promotes the accuracy, fairness, and privacy of consumer information contained in the files of Consumer Reporting Agencies (CRAs), and protects consumers from the willful and/or negligent inclusion of inaccurate information in their consumer reports, including consumer credit information.

Employers will continue to be targeted by lawsuits alleging FCRA violations despite the Supreme Court ruling in Spokeo v. Robins that led to some of these cases to be dismissed, according to the “ESR Top Ten Background Check Trends” for 2020 compiled by global background check firm Employment Screening Resources® (ESR).

“In no way did the Supreme Court decision in Spokeo v. Robins mean employers could relax obligations for FCRA compliance,” explained ESR founder and CEO Attorney Lester Rosen. “Employers must ensure they comply with the FCRA and work with a background screening firm that understands this law inside and out.”

Employment Screening Resources® (ESR) offers two complimentary white papers entitled “Common Ways Prospective or Current Employees Sue Employers Under the FCRA” and “Common Ways Consumer Reporting Agencies are Sued Under the FCRA” to help employers. To learn more about ESR, visit www.esrcheck.com.

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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