On January 11, 2024, the Consumer Financial Protection Bureau (CFPB) issued two new advisory opinions: Fair Credit Reporting; Background Screening and Fair Credit Reporting; File Disclosure. The advisory opinions are part of the CFPB’s ongoing efforts to clean up what the CFPB describes in its press release as allegedly “sloppy” credit reporting practices and ensure credit report accuracy and transparency to consumers.… Continue Reading
background check
FTC Settles With Background Report Companies for FCRA Violations and Deceptive Acts
By Loran Kilson on
Posted in Fair Credit, FTC Enforcement
The Federal Trade Commission (“FTC”) on September 11, 2023, settled a claim against a group of affiliated entities operating a background reporting business, Instant Checkmate, LLC, TruthFinder, LLC, The Control Group Media Company, LLC, Intelicare Direct, LLC, and PubRec LLC (“background report companies” or “companies”) for alleged misrepresentations that deceived consumers about whether they had criminal records and for operating as a consumer reporting agency without following the requirements of the Fair Credit Reporting Act (“FCRA”).… Continue Reading
CFPB highlights accuracy problems in two reports on tenant background screening reports
By Michael Gordon & John L. Culhane, Jr. on
Posted in CFPB, Credit Reports
The CFPB recently released two reports concerning tenant background checks. One report, “Consumer Snapshot: Tenant Background Checks,” discusses consumer complaints received by the CFPB that relate to tenant screening by landlords. The other report, “Tenant Background Checks Market,” looks at the practices of the tenant screening industry.… Continue Reading
California Court of Appeal allows plaintiff to bring willful FCRA claims as class action before jury
By Michael Fausey on
Posted in Fair Credit, Litigation and Court Decisions
In a rare development, a California state court of appeals has opined on the requirements for obtaining authorization for background checks pursuant to the Fair Credit Reporting Act.
In Hebert v. Barnes & Noble, Inc., the plaintiff filed a putative class action against retailer Barnes & Noble, contending it willfully violated the FCRA by providing job applicants with a disclosure that included extraneous language unrelated to the topic of consumer reports. … Continue Reading
FTC provides guidance on FCRA requirements for employer background checks
By John L. Culhane, Jr. on
Posted in Credit Reports, Regulatory and Enforcement
When examining banks and companies subject to CFPB supervisory authority for FCRA compliance, CFPB examiners will look at whether the bank or company has followed FCRA requirements for use of background checks on employees and job applicants.
Those requirements were the subject of a recent letter by FTC staff to a California company. … Continue Reading
FTC and EEOC issue guidance on background checks
By Barbara S. Mishkin on
Posted in Credit Reports, Regulatory and Enforcement
A new joint publication of the Federal Trade Commission and Equal Employment Opportunity Commission serves as a reminder to employers of the risks that come with the use of background information when making personnel decisions, including hiring, retention, promotion, and reassignment. Titled “Background Checks: What Employers Need to Know,” the publication seeks to guide employers on how to comply with both the Fair Credit Reporting Act and federal nondiscrimination laws in obtaining background information, as well as using and disposing of such information. … Continue Reading