According to a survey conducted by the Society for Human Resource Management, 60% of private employers check the credit histories of some of their job applicants, and 13% check the histories of all potential hires.
Category Archives: Background Check Errors
In Syed, the Ninth Circuit Court of Appeals held that a background check disclosure which included a liability waiver violated the FCRA. This case was significant because the Ninth Circuit is the first federal appeals court to definitively state that the FCRA “unambiguously bars the inclusion of a liability waiver.” The court also notably held that the employer willfully violated the FCRA by including the liability waiver in the disclosure, finding that no reasonable interpretation of the statute would allow any language besides a disclosure and authorization.
Our firm represents job applicants subject to background checks. The Fair Credit Reporting Act governs all consumer reports including employment and housing background reports.
TransUnion will pay $60 million to consumers it mistakenly labeled as possible terrorists or drug dealers, under an order issued Tuesday by a federal jury.
The decision stems from a 2012 class-action lawsuit that alleged the credit bureau failed to notify consumers who were reported to lenders as being included on a “blocked persons” list kept by the Treasury Department’s Office of Foreign Assets Control (OFAC). The list includes terrorists, narcotics traffickers, arms dealers and other criminals who are prohibited from doing business in the U.S.
Some drivers say they have been wrongly barred from jobs due to inaccuracies in their DAC reports, and that HireRight and its rivals don’t do enough to verify claims or correct mistakes.
In 2011, HireRight paid $28 million to settle a class-action lawsuit with more than 650,000 plaintiffs who accused it of failing to properly notify and provide copies of reports to job applicants, and for failing to resolve disputes. The company didn’t admit wrongdoing as part of the settlement.
In August 2012, HireRight settled a case with the Federal Trade Commission for $2.6 million over claims it failed to reasonably assure the accuracy of information provided to employers. HireRight didn’t admit to wrongdoing in the settlement, but agreed to monitoring by the FTC until next year.
The company has been sued by truck drivers at least 11 times since the FTC settlement, according to a Wall Street Journal search of federal court records, including over some alleged incidents predating the FTC settlement. The suits allege violations of the Fair Credit Reporting Act including inaccuracies in HireRight reports and failures by the companies to investigate disputed information.
HireRight has settled six of the lawsuits out of court, according to court filings. The settlements were sealed and results not disclosed. It also won three, and two are still open, according to court records. Some large trucking companies have settled class-action lawsuits over how they used HireRight, including not giving applicants a chance to dispute information contained in their employment history reports.
Supervision’s work in the consumer reporting market is ongoing and remains a high priority. Consumer reporting companies and furnishers have an obligation to maintain the accuracy of consumer data, but experience indicates that they lack incentives and under-invest in accuracy. Indeed, these most recent supervisory findings underscore Supervision’s concern about the lack of resources that
http://files.consumerfinance.gov/f/documents/201703_cfpb_Supervisory-Highlights-Consumer-Reporting-Special-Edition.pdf
You can also read Director Cordray’s full remarks on the report to the CFPB Consumer Advisory Board last week.
“Consumer reporting, also known as credit reporting, is an important market that for many years has not been very transparent and generally is not well understood by consumers. It is also one of the markets where people cannot vote with their feet by choosing another provider if they are dissatisfied, which means that industry incentives and practices are not always aligned with the interests of consumers. It is a business-to-business ecosystem where consumers traditionally have had little power to insist on improved practices or fair treatment. Nonetheless, the data managed by the consumer reporting companies – and the scores generated from that data – exert a tremendous influence over the ways and means of people’s financial lives.”
So, let’s be clear: Weakening the CFPB will weaken your financial and employment opportunity. It means mistakes on your credit reports will continue to haunt you and lower your credit score. Weakening the CFPB will allow the credit bureaus to run amok again, laughing at consumers and the regulators as they did for years.
The idea of the CFPB needs no defense, only more defenders.
http://www.uspirg.org/blogs/eds-blog/usp/if-cfpb-weakened-won%E2%80%99t-credit-bureaus-run-amok-again
Bureau Report Outlines Accuracy and Other Issues That Bureau Supervision Has Taken Action to Address
WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) released a report detailing the problems in the credit reporting industry that the Bureau has uncovered and corrected through its oversight work. Since launching its supervision of the credit reporting market, the CFPB has identified significant issues with the quality of the credit information being provided by furnishers and maintained by credit reporting companies. Today’s report outlines the actions that the CFPB has taken to address these ongoing problems such as fixing data accuracy at credit reporting companies, repairing the broken dispute process, and cleaning up information being reported.
“Since we began our oversight work, the CFPB has been uncovering and correcting problems in the consumer reporting industry,” said CFPB Director Richard Cordray. “Because of our work, important improvements are being made. Much more work needs to be done but our corrective actions are leading to positive changes that are benefiting consumers all over the country.”
Consumer reporting companies are businesses that track information about a consumer, including credit history, deposit account history, and other consumer transactions. Such companies, which include what are popularly called credit bureaus or credit reporting companies or agencies, play a key role in the consumer financial services marketplace and in the financial lives of consumers. For example, the reports sold by the three largest consumer reporting companies – Equifax, Experian, and TransUnion – are used in determining everything from consumer eligibility for credit to the rates consumers pay for credit. The consumer reporting companies receive their information from furnishers, including both banks and nonbanks. Inaccurate information can lead to inaccurate reports and consumer and market harm.
Consumers continue to complain about the credit reporting industry in high numbers. The Bureau has handled approximately 185,700 credit reporting complaints as of Feb. 1, 2017. Consumers have said that when they dispute an item on their report, nothing changes even though federal law requires the consumer reporting company to conduct a reasonable reinvestigation and update the file to reflect any necessary changes or delete the item. Consumers also frequently complain of debts already paid showing up on their report as unpaid and information that is not theirs being included in their report negatively affecting their credit scores.
In 2012, the CFPB became the first federal agency to supervise all sides of the credit reporting market, which includes the consumer reporting companies and providers of consumer financial products or services, many of whom furnish or use consumer reports. In 2013, the CFPB published a bulletin warning that the agency would hold furnishers accountable for their legal obligation to investigate consumer disputes forwarded by the consumer reporting companies. The bulletin also reminded companies that they must review all relevant information provided with the disputes, including documents submitted by consumers. The CFPB has also made efforts, including in a consumer advisory , to educate the public about the importance of checking their credit reports, what to look for in their reports, and how to dispute mistakes. As outlined in today’s special edition of Supervision Highlights, because of these widespread issues, CFPB supervision has aimed its work at:
- Fixing data accuracy at consumer reporting companies: Early on, examiners found that one or more of the consumer reporting companies lacked good quality control to check the accuracy of their consumer records. The CFPB directed them to make necessary changes, and they did. In recent exams, examiners have found that quality control programs have been instituted that include tests to identify whether reports are produced for the wrong consumer and whether reports contain mixed-up files. The companies are also taking better corrective actions when mistakes are identified, and making system improvements to prevent the same mistakes from happening again.
- Repairing broken dispute processes at consumer reporting companies: CFPB examiners discovered that one or more consumer reporting companies were not following federal requirements that said they must send a notice with the results of disputes to consumers. They also found one or more consumer reporting companies failing to consider documentation provided by the consumer on a disputed item. The CFPB directed these companies to improve their dispute investigation systems. Now, continued monitoring has shown that the consumer reporting companies have improved processes for investigating disputes and are improving response letters to consumers.
- Cleaning up information from furnishers: Through earlier reviews at banks and nonbanks, CFPB examiners found widespread problems with furnishers supplying incorrect information to the consumer reporting companies. The CFPB directed them to take steps to address these problems, such as maintaining evidence that they are accurately handling disputes and conducting reasonable investigations. Since then, several furnishers have dedicated more resources to ensuring the integrity of the information. This effort includes better investigations and handling of disputes, notifying consumers of results, and taking corrective action when inaccurate information has been supplied. Importantly, though, examiners continue to find numerous violations at one or more furnishers, particularly around deposit account information.
The CFPB’s approach when examining the credit reporting activities of supervised entities is just like its approach to examining other activities of supervised entities. Supervision includes a review of compliance systems and procedures, on-site examinations, discussions with relevant personnel, and requirements to produce relevant reports. The Fair Credit Reporting Act governs how companies handle consumers’ information. When examiners find violations of law, they direct the companies to change their conduct and remediate consumers. When appropriate, the CFPB’s supervisory activity also results in enforcement actions, such as the action against the furnisher Wells Fargo Bank for failing to update or correct inaccurate, negative information reported to credit reporting companies about student loans.
Today’s edition of Supervisory Highlights Credit Reporting Special Edition is available at:http://files.consumerfinance.gov/f/documents/201703_cfpb_Supervisory-Highlights-Consumer-Reporting-Special-Edition.pdf
The Consumer Financial Protection Bureau is a
https://www.consumerfinance.gov/about-us/newsroom/cfpb-oversight-uncovers-and-corrects-credit-reporting-problems/
In Syed v. M-I, LLC, the Ninth Circuit held that including waiver of potential claims language in the same document as the statutorily required Fair Credit and Reporting Act disclosure was a violation of FCRA. In sum, the Court ruled that the FCRA rights notice cannot be combined with any other notice or agreement. It must be a stand-alone document. In determining that the violation was “willful,” the Court held that the “ordinary meaning of ‘solely’ is alone;
http://www.natlawreview.com/article/employer-commits-willful-violation-fair-credit-reporting-act-including-waiver
The Federal Fair Credit Reporting Act is
Denied Credit? Under the FCRA both the credit reporting company, and the company that provided the information, are responsible for correcting inaccurate information on your credit report.”
— Patrick Mansfield
HOUSTON, UNITED STATES, February 27,
What If I’m Denied Credit?
Under federal
What If I Find Errors On My Credit Report?
Under the FCRA both the credit reporting
The credit reporting company, in most cases, must respond in writing within thirty days. Information provided to the credit reporting company is then forwarded to the information provider. If it is discovered that the information provider was reporting inaccurate information, then it is up to that organization to contact the three credit reporting agencies with the correct information. After the information is corrected you are then entitled to a free copy of your report (This is separate from your free annual credit report).
The Fair Credit Reporting Act (FCRA) is a law that requires each of the three credit reporting companies to provide you with a free copy of your credit report, once annually. The Federal Trade Commission (FTC) is in charge of enforcing the FCRA with the three reporting agencies.
The Fair Credit Reporting Act gives everyone the right to know the details of how their credit score is calculated. Therefore, all individuals can request this information, and by
Furthermore, the information must be given without cost if any of
1. The Information is being used to deny credit.
2. The Applicant is the victim of identity theft.
3. The credit report contains inaccurate information.
4. The applicant is unemployed and expects to apply for a job within the next 60 days.
5. The applicant is on public assistance.
Everyone has the right to ask for their score. A credit score is simply a number that represents a calculation of one’s
How Is Your Credit Score Formulated?
Your credit score is calculated by five pieces of data that are
http://www.einnews.com/pr_news/368537155/by-law-consumers-are-entitled-to-one-free-annual-credit-report
In matters pertaining to credit, do you feel like it’s you against the world? Sometimes we all feel that way, but in reality, there are rules and regulations to help protect you against credit discrimination, abuse, or improper handling of your information. Consider these four important laws that help protect your credit rights.
http://theweek.com/articles/677173/how-law-protects-credit
Learn more about how our firm helps consumers to level the playing field:
http://creditreportlawgroup.com/lawyer/Practice-Areas_cp16171.htm