Fair Credit reporting Act (FCRA) class action lawsuits rose 26.8% from May 2015 to June 2015, and FCRA class action lawsuits rose 67.4% in June 2015 over June 2014, according Consumer Financial Protection Bureau (CFPB) Complaint Statistics. The CFPB Complaint…
Posts by Category: Fair Credit Reporting Act
Are you OK with the F-C-R-A?
The Fair Credit Reporting Act isn’t just about credit. If your company uses background checks in making personnel decisions, the FTC reminds you of your obligations under the FCRA. In honor of Throwback Thursday, here’s an unconventional old-school summary…
Insurer Required to Defend and Indemnify FCRA Action Despite Penalty Exclusions
The New York Supreme Court has issued an opinion finding that an insurer has a duty to defend and indemnify a national background screening company in two FCRA actions despite the policy’s exclusions of fines and penalties. The plaintiffs sought statutory damages and…
Georgia Enacts “Miniâ€-FCRA
For more than four decades, the FCRA has regulated CRAs that furnish consumer reports (i.e., background checks) to third parties such as employers. Over the years, several states have adopted so-called “miniâ€-FCRAs, including Arizona, California, Maine,…
District Court Holds that Mailing Pre-Adverse and Adverse Action Letters Five Business Days Apart is Plausible FCRA Claim When it Conflicts with Content of Pre-Adverse Action Letter
In Moore v. Rite Aid Headquarters, the District Court for the Eastern District of Pennsylvania ruled that the plaintiff had stated a plausible employment adverse action claim under the FCRA. In doing so, the Court’s decision raises questions about a widely…
Employers Can Check Applicants’ LinkedIn References Without Violating the FCRA
The United States District Court for the Northern District of California recently dismissed a proposed class action alleging that LinkedIn was a Consumer Reporting Agency (CSA) under the FCRA and violated the law when it provided an online feature that allows…
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…
Revisiting FCRA Requirements
A recent spate of class-action suits should remind employers and HR of the steep cost of FCRA violations. Experts say the time is right for employers to reassess their background-checking processes-and the role staffing and consumer reporting agencies play in those…
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…
California District Court Holds that LinkedIn’s “Reference Searches” Function Not a Consumer Report Under the Fair Credit Reporting Act
A judge recently handed down an important decision regarding the application of the FCRA to one of LinkedIn’s search products. The decision comes amidst a fluid legal landscape for employers and consumer reporting agencies trying to remain in compliance with the…