A nationwide financial investment firm was named on June 30 in a putative class action lawsuit filed in federal district court in Oregon. The case, filed by plaintiff Dustin Kampert, alleges the firm violated the Fair Credit Reporting Act in its background check process related to employment or, alternatively, procured consumer reports without a permissible purpose.
Kampert alleges that in July 2015 he applied to register to sell financial services products using a license sponsored by the investment firm. He alleges that as part of his application to do so, he authorized the firm to procure a criminal background check, which the firm did. The resulting report allegedly incorrectly reported criminal record information that had been expunged in 2008—and thus should not have been reported. Kampert alleges the firm denied his application based on that erroneous information and that denial, in turn, cost him his job.
Kampert brings two claims. First, he alleges the firm took adverse action against him without first providing him with a copy of the report on which the decision was based and a summary of his rights under the FCRA. He seeks to represent a nationwide, five-year class of persons who were denied approval by the firm to sell investment products or services based in whole or in part on a similar report.
Kampert also alleges, as an alternative claim, that if the firm establishes his report was not used for “employment purposes” under the FCRA, it was thus used impermissibly, in violation of 15 U.S.C. § 1681b(f). He alleges the use of his report must have been for employment, otherwise the firm lacked any delineated permissible purpose under the Act.
Kampert seeks statutory damages, punitive damages, and attorneys’ fees and costs. The firm has yet to file its response.