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
CFPB Signals Intent to Move Forward With System Allowing Consumers to Rate Companies’ Responses to Complaints
According to a Federal Register notice published on November 29, the Consumer Financial Protection Bureau is soliciting further comments on its proposal to provide consumers with the option to fill out a short survey on their satisfaction with companies’ resolution of consumer complaints. In the notice, the CFPB described the proposal:
The purpose of this
District Court Wrestles with Interpretation of Webpage in Background Check Disclosure Lawsuit
The Fair Credit Reporting Act requires that employers provide prospective applicants with a disclosure before obtaining a pre-employment background check from a consumer reporting agency. This disclosure must be in a single document that consists “solely of the disclosure” that a consumer report may be obtained for employment purposes. In Burnthorne-Martinez v. Sephora USA, Inc.
FTC Issues Bulletin for Consumers Applying for Apartments and for Handling Background Check Process
On November 28, the Federal Trade Commission issued a bulletin for consumers relating to the process for applying for an apartment and the related background check process that can be undertaken by the potential landlord.
The FTC stated: “Landlords can check your credit, criminal history, and even your rental history. They may ask your permission
FCRA Lawsuits Increase in 2016
While the number of lawsuits filed under the Telephone Consumer Protection Act and the Fair Debt Collection Practices Act remained relatively steady or fell, claims under the Fair Credit Reporting Act rose sharply between October 2015 and October 2016. The total number of FCRA lawsuits increased from 283 to 355 – a 25.4 percent increase.
District Court Finds Receipt of Allegedly Improper Background Check Disclosure is Sufficient to Confer Standing Under Spokeo
In the wake of the Supreme Court’s decision in Spokeo, Inc. v. Robins, courts and litigants alike have been trying to determine the contours of constitutional standing when it comes to procedural violations of consumer protection statutes. This past week, the District Court for the Central District of California weighed in, finding in favor
Court Certified FCRA Class Over Spokeo Objections
A federal judge in the Northern District of California certified a class of job applicants in a lawsuit claiming a background check firm violated the federal Fair Credit Reporting Act. The Court certified the class over the arguments of the defendant that the members of the putative class lacked Article III standing under the standard
State Legislatures Begin to Consider Bans on Asking About Applicants’ Prior Salary History
Bills have recently been introduced in a number of states that would prohibit prospective employers from inquiring about an applicant’s salary history. These bills are aimed at preventing wage discrimination among workers that perform similar or identical job functions.
These bills follow on the heels of approved legislation in Massachusetts. Massachusetts Senate Bill 2119,
Federal Court Dismisses Putative FCRA Class Action for Lack of Standing and Plausible Willful Violation
On August 19, the United States District Court for the District of Nevada dismissed a putative Fair Credit Reporting Act class action against two taxi companies that had allegedly violated the Fair and Accurate Credit Transactions Act by including the first digit and last four digits of consumers’ credit card numbers
Court Dismisses TCPA Claim Because Text Messaging App Does Not “Make” Calls
In Cour v. Life360, Inc., the United States District Court for the Northern District of California granted a defendant’s motion to dismiss a claim under the Telephone Consumer Protection Act, finding that the defendant’s system for sending text messages did not constitute “making” a call under the statute. In reaching