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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:

  • Inaccurate Information: Many lawsuits allege that  reports contained errors like:
    • Mismatched criminal records: Attributing someone else's criminal history to the applicant.
    • Outdated information: Reporting old arrests or charges that were dismissed.
    • Inaccurate reporting of offenses: Misclassifying the severity of an offense.
  • Lack of Transparency and Due Process: Some lawsuits claim the CRA:
    • Failed to provide consumers with copies of their reports.
    • Didn't give consumers a chance to dispute inaccurate information.
    • Didn't follow proper adverse action procedures (i.e., notifying individuals if a background check negatively affected their employment).

Notable Lawsuits and Settlements:

  • 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!

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