Consumer Financial Services Law Monitor

Consumer Financial Services Law Monitor

monitoring the financial services industry to help companies navigate through regulatory compliance, enforcement, and litigation issues

Background Screening

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Avis Settles FCRA Background Check Lawsuit for $2.7 Million

Posted in ALL CFS Blog Entries, Background Screening
On November 17, car rental company Avis filed its memorandum in support of final approval of a $2.7 million class action settlement to resolve Fair Credit Reporting Act claims related to its background screening practices. The case is Angela Fuller v. Avis Budget Car Rental LLC, et al., No. 2:15-cv-03856, pending in the U.S. District… Continue Reading

Supreme Court Declines to Hear Appeal of Ninth Circuit Decision on FCRA Willfulness in Disclosure Forms

Posted in ALL CFS Blog Entries, Background Screening
One of 2017’s more significant Fair Credit Reporting Act court opinions was the Ninth Circuit’s January 20 decision in Syed v. M-I, LLC, a putative FCRA class action.  In its decision, the Ninth Circuit Court of Appeals held that a prospective employer willfully violated the FCRA by including a liability waiver in its background check… Continue Reading

Arizona Governor Signs Executive Order Banning the Box

Posted in ALL CFS Blog Entries, Background Screening
On November 6, Arizona governor Doug Ducey signed an executive order making Arizona the most recent state to adopt a “ban the box” law.  The state joins Pima County and Tucson – Arizona localities that have already joined the “ban the box” movement. Under the new policy, state agencies will delay questions related to an… Continue Reading

Sodexo Escapes FCRA Putative Class Action

Posted in ALL CFS Blog Entries, Background Screening
As we previously reported, consumer plaintiff Robert Piveronas filed a putative Fair Credit Reporting Act class action in Pennsylvania state court against Sodexo, Inc., alleging that the multinational corporation routinely violates the FCRA’s mandate that employers provide consumers with a “clear and conspicuous” background check disclosure, consisting solely of the disclosure, before procuring a consumer… Continue Reading

Court Grants Summary Judgment to Thomson Reuters; Company Does Not Qualify as Consumer Reporting Agency

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
In Kidd v. Thomson Reuters, plaintiff Lindsay A. Kidd brought a Fair Credit Reporting Act putative class action claim against mass media and information firm Thomson Reuters after she was allegedly denied a job with the Georgia Department of Public Health based on criminal history information obtained by the Department from Thomson Reuters’ subscription-based online… Continue Reading

California’s Statewide “Ban-The-Box” Law To Go Into Effect January 2018

Posted in ALL CFS Blog Entries, Background Screening, Featured Posts
On October 14, 2017, California became the most recent state to adopt a “ban-the-box” law. The law, signed by Governor Jerry Brown, goes into effect on January 1, 2018, prohibiting pre-offer inquiries regarding applicants’ conviction histories, and regulating employers’ decisions to deny employment to an applicant based on his or her convictions. This law is… Continue Reading

District Court Rejects FCRA Class Action Settlement for Lack of Standing

Posted in ALL CFS Blog Entries, Background Screening
In Robertson v. Allied Solutions, LLC, plaintiff Shameca Robertson brought a class action claim in the Southern District of Indiana against Allied Solutions under the Fair Credit Reporting Act.  In the complaint, Robertson asserted two claims against Allied Solutions: (1) that the company failed to provide her with an FCRA-compliant disclosure informing her that it… Continue Reading

New York Passes Law Overhauling Process for Sealing Old Felony Convictions

Posted in ALL CFS Blog Entries, Background Screening
Effective October 7, New York law now authorizes state courts to seal nonviolent criminal convictions that are more than ten years old.  The newly enacted New York Criminal Procedure Law § 160.59 allows criminal defendants to apply to seal one felony and one misdemeanor conviction, or two misdemeanor convictions, for offenses other than violent and… Continue Reading

District Court Denies Motion to Strike in FCRA Background Check Class Action

Posted in ALL CFS Blog Entries, Background Screening
In Fosbrink v. Area Wide Protective, Inc., William Fosbrink sued defendant Area Wide Protective in a class action complaint for allegedly violating the Fair Credit Reporting Act’s provisions regarding employment background checks.  According to Fosbrink, Area Wide violated the FCRA in three ways: (1) it failed to provide him with a stand-alone disclosure informing him… Continue Reading

Starbucks Hit with FCRA Class Action

Posted in ALL CFS Blog Entries, Background Screening
Starbucks Corp. has been sued in a proposed class action in the Northern District of Georgia for alleged violations of the Fair Credit Reporting Act with its employment application process.  Plaintiff Kevin Wills claims Starbucks rejected job applicants based on consumer reports without first providing a copy of the reports to the applicants and notifying… Continue Reading

FTC Says Its Focus Must Be on Instances of Real Harm to Consumers

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy, Mortgage Lenders & Servicers, State Attorneys General, CFPB, & FTC
In a September 19 speech at the Federal Communications Bar Association in Washington, FTC Acting Chairman Maureen K. Ohlhausen stated that the Commission should focus on addressing instances of “substantial consumer injury” in deciding which cases to pursue.  Echoing (intentionally or not) the language of the Supreme Court’s foundational decision in Spokeo, Inc. v. Robins,… Continue Reading

Central District of California Limits Fees in FCRA Class Action, Creates Bigger Award Pool for Class Members

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On July 18, the District Court for the Central District of California granted in part and denied in part a motion for attorneys’ fees, costs, and other payments in a Fair Credit Reporting Act class action suit.  The motion accompanied a proposed $400,000 settlement, with a third of the funds allocated to class counsel for… Continue Reading

Join Us at the National Association of Professional Background Screeners Annual Conference

Posted in ALL CFS Blog Entries, Background Screening, CFS Events
We are pleased to announce that Troutman Sanders partners David Anthony, Cindy Hanson, and Tim St. George will be featured speakers at the upcoming National Association of Professional Background Screeners (NAPBS) Annual Conference, to be held in Orlando, Florida on September 17-19, 2017. On Tuesday, September 19, David, Cindy and Tim will speak on a panel entitled “FCRA… Continue Reading

Join Us for a NAPBS Webinar on September 27: Compliance Management Systems – The Next Generation

Posted in ALL CFS Blog Entries, Background Screening, CFS Events, Credit Reporting & Data Brokers, Cyber Security, Information Governance & Privacy
We are pleased to announce that Troutman Sanders attorneys Ron Raether and Megan Nicholls will be featured speakers for a webinar hosted by the National Association of Professional Background Screeners on September 27, 2017 from 3:00 – 4:00 p.m. ET. In this session, they will discuss the basic elements of a compliance management system, how to maintain… Continue Reading

Federal Appellate Court Affirms Dismissal of Putative FCRA Class Action

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers
On August 24, the United States Court of Appeals for the Eleventh Circuit affirmed the dismissal of a putative class action against TransUnion on the basis that it failed to allege a plausible claim for relief, holding that TransUnion was not objectively unreasonable in its reading of the Fair Credit Reporting Act. The plaintiff, Kathleen… Continue Reading

Indiana Becomes First State to Prohibit Ban-the-Box Ordinances

Posted in ALL CFS Blog Entries, Background Screening
Countering a nationwide trend of “ban the box” ordinances that prohibit employers from asking about an individual’s criminal history at the initial application stage, Indiana has become the first state to ensure through legislation that employers can inquire into applicants’ criminal histories.  The legislation prohibits localities from implementing “ban the box” ordinances.  The measure has… Continue Reading

Courier Service Settles Lawsuit Challenging Background Check Disclosure Form and Notices

Posted in ALL CFS Blog Entries, Background Screening, Credit Reporting & Data Brokers, Featured Posts
The recent matter of Nesbitt, et al. v. Postmates Inc., Case No. CGC15547146 in the Superior Court of the State of California, County of San Francisco, demonstrates the continuing trend of litigation regarding the content of background disclosure forms, as well as ongoing issues regarding the failure of employers to provide notice of adverse action… Continue Reading

Seventh Circuit Affirms Dismissal of FCRA Disclosure Claim on Standing Grounds

Posted in ALL CFS Blog Entries, Background Screening
On August 1, the Seventh Circuit Court of Appeals in Groshek v. Time Warner Cable, Inc. affirmed the Eastern District of Wisconsin’s dismissal of a putative Fair Credit Reporting Act class action on the basis of Article III standing.  Specifically, applying the Supreme Court’s decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016),… Continue Reading

Barclays Hit with Putative Class Action Over Background Checks

Posted in ALL CFS Blog Entries, Background Screening
On August 4, the Brooklyn Events Center, LLC d/b/a Barclays Center, Levy Premium Foodservice Limited Partnership, and Professional Sports Catering LLC were hit with a putative class action alleging that the businesses use discriminatory criminal history screening policies to deny employment to qualified job applicants. According to the complaint, the named plaintiff, Felipe Kelly, applied… Continue Reading

Join Us for a Webinar on August 24 – A Review of Recent FCRA Trends and Developments

Posted in ALL CFS Blog Entries, Background Screening, CFS Events, Credit Reporting & Data Brokers
Join Troutman Sanders attorneys David N. Anthony, Cindy D. Hanson and Meagan A. Mihalko for a timely discussion of recent case studies and case law developments affecting the credit reporting and background screening industry. The discussion will include an update on the effects of Spokeo, as well as an overview of other recent Fair Credit Reporting… Continue Reading

Missouri Appellate Court Affirms Dismissal of FCRA Class Action Based on Application of Spokeo and Federal Standing Rules

Posted in ALL CFS Blog Entries, Background Screening
On July 25, the Missouri Court of Appeals affirmed a state trial court’s dismissal of a putative Fair Credit Reporting Act class action against a large retailer based on standing issues.  Most notably, the court did so in reliance on Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (May 16, 2016), and Article III standing… Continue Reading

Defendant Seeks To Stymie Plaintiff’s ‘False Pretense’ Claim Under the FCRA

Posted in ALL CFS Blog Entries, Background Screening
In Patel v. Comcast Corporation, plaintiff consumer Mounang Patel brought a purported class action lawsuit against defendant Comcast Corporation, arguing that Comcast unlawfully obtains background checks (also referred to as consumer reports) on consumers under false pretenses.  On July 17, Comcast moved to dismiss this class claim on the ground that Patel failed to allege… Continue Reading

Indiana Governor Issues Executive Order “Banning the Box”

Posted in ALL CFS Blog Entries, Background Screening
Indiana Governor Eric Holcomb has issued an executive order “banning the box” for jobs within the executive branch.  Effective July 1, applicants for employment in the executive branch will no longer be subject to inquiries about their criminal history at the initial application stage, unless the conviction for a specific crime would disqualify the applicant… Continue Reading

Financial Investment Company Named in Background Check Lawsuit

Posted in ALL CFS Blog Entries, Background Screening
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… Continue Reading