Uber and Lyft Face Lawsuit for Alleged Violations of the Fair Credit Reporting Act

Transportation Network Companies (TNCs)

Written By ESR News Blog Editor Thomas Ahearn

On August 27, 2021, a complaint was filed in the Eastern District of New York against Uber and Lyft – two popular transportation network companies (TNCs) – as well as a Consumer Reporting Agency (CRA) used by both TNCs for alleged violations of the federal Fair Credit Reporting Act (FCRA) due to an inaccurate background check.

The complaint claimed the CRA that provided background checks to Uber and Lyft violated the FCRA by inaccurately reporting that the plaintiff – who had driven for Uber and Lyft for years – was listed as deceased on the Social Security Administration (SSA) Death Master File during a required yearly background check.

The complaint claimed that Uber and Lyft both notified the plaintiff that he could not continue driving for their companies until his background check was completed so he tried repeatedly to contact the CRA until he was finally told that the Social Security Number (SSN) he provided was listed on SSA’s Death Master File.

However, when the plaintiff contacted the SSA, he was told he was not listed as deceased and would receive the paperwork to prove he was alive. Even though the plaintiff allegedly gave this information to the CRA, he was unable to rectify the situation and still could not drive for Uber or Lyft. As a result of this, he filed a complaint.

The plaintiff alleges that the CRA willfully violated the FCRA which requires that “whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.”

The complaint also claimed Uber and Lyft did not give the plaintiff a copy of the allegedly inaccurate consumer report which prevented him from working as they were obligated to do under the FCRA, which requires employers intending to take adverse action based on a consumer report to give the subject a copy of the report.

The plaintiff claims that he suffered actual damages “including but not limited to: loss of job opportunity, emotional distress which includes many sleepless nights, mental anguish, embarrassment, stress, and time wasted looking for other employment.” A copy of the complaint BUCKLEY vs. LYFT and UBER is available here.

Employment Screening Resources® (ESR) – a leading global background check firm ranked the #1 screening firm by HRO Today in 2020 – offers employers background checks for on demand workers that make up the extended workforce in the fast growing “gig economy.” To learn more about ESR, visit www.esrcheck.com.

NOTE: Employment Screening Resources® (ESR) reminds readers that allegations made in lawsuits are not proof a business or individual violated any law, rule, or regulation since they are in the pleading stage with no factual adjudications yet.

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