A federal court in Virginia has denied a motion for summary judgment in a class action complaint that claims Wells Fargo Bank violated the FCRA when performing background checks on job applicants by coding some as “ineligible” prompting adverse action and including a release of liability in authorization forms. The plaintiff claims Wells Fargo violated the FCRA requirement of “a clear and conspicuous” disclosure in a document that consists solely of a disclosure that a background check may be obtained because that documents also contained language releasing the company and others from liability arising from the background check. In denying the motion for summary judgment, the court found that the plaintiff could assert claims that the initial disclosure was not in a document consisting solely of the disclosure and that the “ineligible” coding was an adverse action under the FCRA.
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Class Action Lawsuit Claims Bank Violated FCRA with Background Checks
Oct 1, 2015 | Background Check Compliance, Fair Credit Reporting Act, Financial Services Hiring
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