International News
Thers's a Pattern to FCRA Lawsuits
January 14, 2025 posted by Steve Brownstein
CRAs (Pre-employment screeningcompanies) have faced quite a few legal challenges in recent years, mostly related to inaccuracies in their background checks and violations of the Fair Credit Reporting Act (FCRA). Here's a summary:
Key Legal Issues:
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Inaccurate Information: Many lawsuits allege that reports contained errors like:
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Mismatched criminal records: Attributing someone else's criminal history to the applicant.
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Outdated information: Reporting old arrests or charges that were dismissed.
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Inaccurate reporting of offenses: Misclassifying the severity of an offense.
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Lack of Transparency and Due Process: Some lawsuits claim the CRA:
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Failed to provide consumers with copies of their reports.
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Didn't give consumers a chance to dispute inaccurate information.
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Didn't follow proper adverse action procedures (i.e., notifying individuals if a background check negatively affected their employment).
Notable Lawsuits and Settlements:
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Class Action Settlement (2018): One background check comapny settled a class-action lawsuit for allegedly including illegal information about low-level offenses on the reports of over 96,000 people!