In recommending that the district court grant the defendant’s motion to dismiss, a magistrate judge in the United States District Court for the Northern District of Georgia recently addressed the contours of 15 U.S.C. § 1681k(a) of the Fair Credit Reporting Act in a way that affirms the disjunctive nature of that statutory provision, and
FTC Issues New Bulletin Regarding Employment Background Screening Regulations
In March 2014, the Federal Trade Commission issued a bulletin entitled Background Checks: What Job Applicants and Employees Should Know, which set forth and summarized a number of the laws and regulations on the use of employment background checks, both prior to and subsequent to hiring.
In November, the FTC issued a second such
CFPB Urges Industry to Develop Faster System for Electronic Transfers
On November 20, Consumer Financial Protection Bureau Director Richard Cordray urged financial institutions to develop faster systems for processing electronic funds transfers (EFTs). In his prepared remarks, however, he insisted that these faster systems must offer robust consumer protections.
According to Cordray, the U. S. banking system needs improvement in the ability to process
New FCRA Background Check Lawsuit Demonstrates Compliance Minefield Pertaining to Employment Background Checks
After facing speculation as to whether Uber sufficiently screens the backgrounds of its drivers, Uber is now facing a class action under the Fair Credit Reporting Act for allegedly failing to conduct background checks in accordance with the FCRA. This lawsuit provides another example of the minefield companies face when conducting pre-employment background checks.
According
Florida AG and FTC File Complaints Against Technical Support Services
Florida Attorney General Pam Bondi and the Federal Trade Commission filed two complaints against multiple companies operating “multi-million dollar schemes to sell tech support services to consumers nationwide,” according to a news release by the State Attorney General’s office.
According to Bondi and the FTC, the first complaint alleges that Inbound Call Experts LLC, Super
Electronic Funds Transfers on CFPB’s Enforcement Radar
On November 13, Consumer Financial Protection Bureau Director Richard Cordray delivered prepared remarks regarding electronic funds transfers (EFTs). Although Cordray noted the benefits of EFTs to consumers, he cautioned that the potential for abuse necessitates aggressive policing of the industry.
According to the CFPB, the nationwide system for EFTs allows consumers to receive their paychecks,
Recent Settlement Shows That Consumer-Reporting and Debt-Collection Procedures are Top Priorities for CFPB
An $8 million settlement announced November 19, 2014, between the Consumer Financial Protection Bureau (CFPB) and the nation’s largest “buy here pay here” auto dealer represents yet another warning coming out of Washington, D.C. that:
1. Compliance with the requirements of the Fair Credit Reporting Act (FCRA) when businesses furnish credit information to consumer reporting
FTC and State Attorneys General Reach $22 Million Proposed Settlement with Companies Offering Hidden-Fee Access to Credit Reports
The Federal Trade Commission has stopped an online program that allegedly lured consumers with “free” access to their credit scores and then billed them a recurring fee of $29.95 per month for a credit monitoring program they never ordered. The defendants are One Technologies LP (also doing business as ScoreSense, One Technologies Inc., and MyCreditHealth);
California Attorney General Releases Data Breach Report
California Attorney General Kamala Harris released a report on October 28 on the growing threat of data breaches on California residents. According to the report, data breaches in California jumped 28 percent last year, from 131 reported incidents in 2012 to 167 in 2013. The breaches affected 18.5 million Californians by putting their personal information
FCC Steps into Data Privacy Fray with Action Against Telecommunications Company
The Federal Communications Commission took its first step into the field of data security regulation on October 24 when it hit two telecommunications companies with a $10 million fine for allegedly failing to adequately safeguard customers’ sensitive information.
The two companies – TerraCom, Inc. and YourTel America, Inc. – were fined for allegedly placing the