FINRA (the Financial Industry Regulatory Authority) has issued a rule change for background screening requirements that went into effect on July 1, 2015. FINRA Rule 3110(e) is based on similar provisions in NASD Rule 3010(e) and NYSE Rule 345.11. In short, FINRA Rule…
Posts by Category: Credit Checks
Woman Sues Credit Reporting Agencies for Declaring Her Dead
A St. Louis, Missouri woman has filed a lawsuit against the “big three” credit reporting agencies – Equifax, Experian, and TransUnion – for declaring her “deceased” in her credit files and making it impossible for her to receive…
Update on Certainty in Enforcement Act of 2015; H.R.548 — 114th Congress (2015-2016)
All Bill Information (Except Text) Amends equal employment opportunity requirements under the Civil Rights Act of 1964 to deem an employer’s, labor organization’s, employment agency’s, or joint labor management committee’s consideration or use…
Cook County, Illinois Amends Human Rights Ordinance to Limit Credit Checks
Cook County, Illinois enacted a bill (No. 15-3088) that amends the Cook County Human Rights Ordinance to restrict employers from asking about or otherwise considering a prospective or current employee’s credit history in employment decisions. The new ordinance…
New York City Will Ban Employers From Viewing Credit History of Prospective Workers
The City Council is expected to pass a bill that will make it illegal for employers to check job-seekers’ credit history. In addition to banning credit reports on a prospective employee, the bill also prohibits employers from asking people what their credit…
Paramount Slapped With Class Action Over Credit Reports For Job Applicants
Looks like there was something prickly buried in the fine print for one prospective employee and maybe many more. Paramount Pictures has been hit with a lawsuit over allegedly not telling job applicants exactly how deep into their past it intends to look. “This…
NYC Mayor Signs Law Banning Credit Checks
NYC Mayor Bill DeBlasio signed a bill (Int. 0261-2014) that amends the City’s Human Rights Law to prohibit most employers from inquiring into or considering a prospective or current employee’s credit history when making employment decisions. The law will…
FCRA Class Action USB Financial Services
This is a consumer class action based upon Defendant UBS Financial Services, Inc.’s (UBS) violations of the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. (FCRA). UBS systematically violates at least two sections of the FCRA: section 1681b(b)(2), by…
Sixth Circuit Affirms Dismissal of EEOC Credit Check Case and Rejects “Homemade” Method of Determining Race by “Eye-Balling” Photos
The Sixth Circuit affirmed a lower court order granting summary judgment in favor of Kaplan in a high-profile credit check lawsuit that the EEOC brought against the education company. The EEOC alleged that Kaplan’s use of credit checks causes it to screen out…
Beyond Credit Reporting: The Extension of Potential Class Action Liability to Employers under the Fair Credit Reporting Act
The provisions of FCRA apply to any business entity that seeks to use a “consumer report” – which broadly includes anything from a credit report to a criminal or even motor vehicle background check – for any “employment purposes.”…