Category Archives: Fair Credit Reporting Act

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Woman Sues Employer and Background Screener Over Mix-Up that Turned Life ‘Upside Down’

A Florida woman is struggling after a mix up with her employers’ background screening process allegedly resulted in her losing her home, her vehicle, and her children. She shares the same name and date of birth as a violent offender in Pennsylvania. The employee notes that this case of mistaken identity has happened before with the same employer, a transportation network company; she previously had to submit fingerprints and contact Pennsylvania’s authorities before being able to continue working. The mix up occurred once more when her employer’s new background screening company returned the same results and the employer suspended her again. This time, the employee decided to sue the company as well as the background screener for damages and is alleging that they willfully violated the Fair Credit Reporting Act (FCRA). Click here if you’d like to read more about this story: https://www.wftv.com/news/local/tampa-woman-sues-lyft-after-she-says-background-check-mix-up-turned-life-upside-down-/1002257735

This instance of mistaken identity demonstrates that employers should properly vet their background screening providers’ reporting policies, specifically their matching criteria. Most background screening companies have a separate policy in place for reporting common names that is more stringent than their standard reporting policy. Employers should also follow proper adverse action guidelines to ensure that the candidate or employee has a chance to dispute any incorrect information before a letter of denial is issued. Technical errors such as this are avoidable and HR teams can mitigate their risk by partnering with a background screener that thoroughly verifies the information they report.

Please feel free to reach out to CRC’s Sales team at (877) 272-0266 if you have any questions or concerns about your current process!


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Delta Air Lines to Pay $2.3 Million to Settle FCRA Class Action Lawsuit

Delta Airlines has agreed to pay $2.3 Million to settle a class action lawsuit for alleged Fair Credit Reporting Act (FCRA) violations. Approximately 44,000 applicants were affected and are eligible to collect a portion of the settlement. According to the plaintiffs, Delta’s forms contained extraneous and misleading information that could not be understood without an in-depth review of the FCRA. Under the FCRA, employers are required to provide clear and conspicuous disclosure, on a document consisting solely of the disclosure, as well as obtain the consumer’s written authorization prior to procuring the consumer report. This means that any extraneous information such as a release of liability or any other information that detracts from the notice should not be on the disclosure and including it there can result in legal and monetary repercussions.

Cases like this should serve as a reminder to employers to review their FCRA forms, in particular their Disclosure and Authorization forms, as well as their Adverse Action forms. Employers should also leverage their background screening provider for assistance with FCRA compliance. Although background screening providers cannot (and should not) provide legal counsel, experienced and accredited background screening providers can provide end users with valuable tools and resources to help them comply with the Fair Credit Reporting Act and its analogous state laws.

Some resources most accredited screening providers can offer include, but are not limited to, sample template FCRA and state-specific forms, document/process fulfillment and automated compliance tools which are offered directly through the background screener’s online portal. Also, most established background screening providers have relationships with experienced, industry-leading attorneys. If outside counsel is sought, the background screening provider will be able to refer the employer to an attorney that specializes in background screening and the Fair Credit Reporting Act.

Are you interested in leveraging CRC’s compliance team to ensure you’re in FCRA compliance? Feel free to reach out to us for a free consultation!