The Federal Trade Commission has released its annual summary of consumer complaints for 2016, contained in the FTC’s latest Consumer Sentinel Network Data Book. The FTC compiles the report annually based on complaints received by the Consumer Sentinel Network. Complaints include those made directly by consumers to the FTC, as well as complaints received
Improper Form of Background Check Disclosure Not Sufficient Injury for Standing
Ever since the Supreme Court decided Spokeo, Inc. v. Robins last year, courts have been struggling to define the contours of standing in “no injury” class actions. In Fields v. Beverly Health and Rehabilitation Services, Inc. et al., the District of Minnesota recently granted a motion to dismiss a Fair Credit Reporting Act c
CFPB Indicates Online Complaint Portal Upgrades are Coming
The Consumer Financial Protection Bureau maintains an online portal for consumers to submit complaints across a wide variety of regulated industries, including credit reporting, background screening, and debt collection. The CFPB has announced that it will upgrade its online portal system in early 2017. The CFPB has released a preview document, which states that the
District Court Finds That Sending Copy of Background Check Satisfies FCRA Pre-Adverse Action Obligations
Under the Fair Credit Reporting Act, when an employer is considering rejecting an applicant based on a background check (often referred to as a consumer report), it must follow certain “pre-adverse” action procedures. Specifically, an employer must provide the applicant with a copy of his or her background check and a summary of rights under
Defendant Requests Rehearing En Banc of Ninth Circuit’s Finding of Willful FCRA Violation
As we previously reported, on January 20, the Ninth Circuit Court of Appeals issued a decision of first impression in Syed v. M-I, LLC, a putative class action, when it held that a prospective employer willfully violated the Fair Credit Reporting Act by including a liability waiver in its background check disclosure form. The
Ban the Box Bill Passes Virginia State Senate, Awaits Review by House
On January 27, Sen. Rosalyn Dance’s “ban the box” bill, SB 1171, passed the Virginia Senate by a 22-17 vote. The bill proposes to “ban the box” by preventing prospective employers from asking about a job applicant’s criminal history at the initial employment application stage. The bill was introduced as follows:
“Public employment; inquiries by
Third Circuit Finds Consumer Standing in FCRA Data Breach Litigation
On January 20, the Third Circuit in In re Horizon Healthcare Services Data Breach Litigation reversed a district court’s dismissal of a lawsuit under the Fair Credit Reporting Act involving a data breach at Horizon Healthcare. The Third Circuit held that the plaintiffs had standing to pursue their claims under the FCRA without any accompanying
District Court Finds That “Complete and Up to Date” Requirement of FCRA § 1681K Does Not Include an Accuracy Component
A consumer reporting agency complies with § 1681k(a)(2) of the Fair Credit Reporting Act (“FCRA”) if it “maintain[s] strict procedures designed to insure that whenever public record information which is likely to have an adverse effect on a consumer’s ability to obtain employment is reported it is complete and up to date.” In Kelly v.
L.A. Becomes Latest Jurisdiction to “Ban the Box” for Private Employers
Los Angeles recently became the latest major city to pass a city ordinance that “bans the box” regarding inquiries into job applicants’ criminal histories from initial employment applications. The ordinance is significant in that it specifically regulates private sector employers with 10 or more employees. Under the ordinance, private employers will be prohibited from asking
Court Finds That Spokeo Does Not Bar Enforcement of Background Check Class Action Settlement
In Schumacher v. SC Data Center, the plaintiff brought three class action claims against SC Data Center, Inc. under the Fair Credit Reporting Act related to its pre-employment background check process. Specifically, the plaintiff alleged that SC Data Center’s background check process violated the disclosure and adverse action provisions of the FCRA. The substance