Employers Cannot Force Job Applicants to Waive FCRA Rules Applicable to Background Reports

Today, the 9th Circuit Court of Appeals issued an opinion in a FCRA case, Syed v. M-I, LLC that involves background reports employers obtain on prospective employees. The background reports are “consumer reports” like credit reports subject to the FCRA rules. The FCRA requires employers to give applicants a written disclosure that they plan to obtain a background report. The purpose for the disclosure is to give applicants the opportunity to block the employer from obtaining a report, a matter of privacy. The disclosure must be consist “solely of the disclosure.” The employer M-I tried to insulate it from FCRA...

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CFPB Orders TransUnion and Equifax to Pay for Deceiving Consumers in Marketing Credit Scores

The Consumer Financial Protection Bureau today announced it has taken action against Equifax and TransUnion for deceiving consumers about the usefulness and actual cost of credit scores they sold to consumers. The companies also lured consumers into costly recurring payments for credit-related products with false promises. The CFPB said that from 2011 to March 2014, TransUnion and Equifax falsely represented that the credit scores they marketed and provided to consumers were the same scores lenders typically use to make credit decisions. In fact, the scores were not typically used by lenders. Plus, TransUnion and Equifax falsely claimed that their credit...

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CFPB Report on All Consumer Reporting Agencies

CFPB Report on All Consumer Reporting Agencies The CFPB has published a new report on all of the credit reporting agencies that report information on consumers. Besides the three national agencies, the report includes information on agencies that provide reports on employment screening, tenant screening, consumers’ use of bank accounts, medical histories, and other specialized areas of interest to creditors. Under the FCRA, consumers have a right to ask for a copy of their reports from these agencies.

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American Banker asks if Credit Bureaus Can Finally be Tamed

American Banker asks if Credit Bureaus Can Finally be Tamed The American Banker magazine has an article that asks “Can credit bureaus can finally be tamed?” The article describes a “tough fix-it order” imposed by federal and state officials that was supposed to force the bureaus to clean up inaccuracies and better respond to consumer complaints. But that happened 25 years ago and the problems with the bureaus persist. The article notes that lawyers, advocates and regulators agree that problems of accuracy and how disputes are handled continue to be problems. In 2012 the FTC found that one in four...

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What’s Wrong with the Credit Reporting System

What’s Wrong with the Credit Reporting System On September 10, 2014, the House of Representatives SubCommittee on Financial Institutions and Consumer Credit heard testimony on the current state of the consumer credit reporting system. Mr Stuart Pratt, who is with the industry trade association, the Consumer Data Industry Association, testified that all was well with the system, except that there are too many class actions against his member companies. Ms Chi Chi Wu, an attorney with the National Consumer Law Center, testified that the credit reporting system is neither fair nor completely accurate and as a result tens of millions...

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