On January 16, 2014, Troutman Sanders secured a victory for client Paris Baguette America, Inc. when District Judge Jed S. Rakoff of the U.S. District Court for the Southern District of New York dismissed with prejudice a putative class action alleging that Paris Baguette willfully violated the Fair and Accurate Credit Transaction Act by printing
Retailer Hit With Second FCRA Class Action Pertaining to Background Checks
On January 28, Michael’s Stores, Inc. was hit with its second Fair Credit Reporting Act (FCRA) class action lawsuit challenging Michael’s employment background check procedures in as many months. This lawsuit should serve as another reminder to employers to verify their background check procedures comply with both state and federal law.
According to the allegations
CFPB Issues Bulletin Advising Entities Undergoing Regulatory Exams Not To Share Information With Third Parties Or Withhold Information From the CFPB
On January 28, 2015, the Consumer Financial Protection Bureau issued a bulletin warning financial institutions about entering into agreements with third parties that share or hide information related to regulatory exams, as well as warning entities under investigation about sharing information with third parties.
The bulletin is intended to assist supervised entities in complying with
Coalition Urges New York City to Ban Use of Credit Checks in Hiring
On January 15, the NYC Coalition to Stop Credit Checks in Employment published an open letter to New York City Mayor de Blasio and the City Council, urging them to support legislation banning the use of credit checks in employment decisions. To the extent New York City enacts such a law, it would create
New FCRA Lawsuit Demonstrates Growing Trend of Consumers Challenging Employer Disclosure Forms
A new putative class action lodged in California federal court against Paramount Pictures Corporation made it the latest employer to be accused of violating the Fair Credit Reporting Act by obtaining credit reports from current and prospective employees without adequate disclosure of their rights under the FCRA. The lawsuit alleges that the company has a
FTC Issues Follow-Up Study on Credit Reporting Accuracy
The Federal Trade Commission has issued a follow-up study of credit report accuracy (the “Follow-Up Study”) that found most consumers who previously reported an unresolved error on one of their three major credit reports believe that at least one piece of disputed information on their report is still inaccurate.
The congressionally-mandated study is the sixth
Ninth Circuit Affirms Use of “Reasonable Assumptions” in Calculating Amount in Controversy Under CAFA
On January 7, the United States Court of Appeals for the Ninth Circuit reversed and remanded the district court’s decision to grant a plaintiff’s motion to remand and kept a putative employment class action against trucking company Knight Transportation Inc. in federal court. In so doing, the Ninth Circuit held that defendants trying to establish
Genesis Healthcare Hit with Background Check Class Action on Theory that Adverse Action Occurs When Consumer Reporting Agency Provides Background Check Review Services
On January 7, 2015, Genesis Healthcare became one of the most recent companies to face a class action lawsuit under the FCRA based on its background check practices. This lawsuit should serve as a reminder to companies to verify that their procedures for obtaining and using background checks comply with the FCRA’s disclosure and adverse
U.S. Supreme Court Vindicates Broad Jurisdiction of Federal Courts over Class Actions Under CAFA
On December 15, 2014, the U.S. Supreme Court rejected the notion that class actions defendants should be forced to proffer affirmative evidence with their removal petition in order to remove their cases from state to federal court. In a 5-4 decision, the Court held in Dart Cherokee Basin Operating Co. LLC v. Owens that a
Seventh Circuit Affirms Dismissal of FDCPA Lawsuit Under The Rooker-Feldman Doctrine
In Harold v. Steel, the United States Court of Appeals for the Seventh Circuit affirmed dismissal of a Fair Debt Collection Practices Act (FDCPA) suit based on the Rooker-Feldman doctrine. In the case, a small claims court in Marion County, Indiana, entered a judgment against Kevin Harold for a little more than $1,000. He