By John Albanese For credit reporting errors, creditors can be sued under the Fair Credit Reporting Act (“FCRA”) for failing to conduct a reasonable investigation when a consumer disputes reported information to a credit bureau. 15 U.S.C. § 1681s-2(b). If a consumer makes repeated disputes but the error is not…
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By John Albanese Consider the following scenario: You apply for a job. The employer says that you are hired pending a background check. You have no criminal record so you think there should not be a problem. Then, you receive an email saying that there is an issue with your background check and that…
In May 2016, the Supreme Court handed down its decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016). In Spokeo, the Court held that an alleged “bare procedural violation” of the Fair Credit Reporting Act (“FCRA”) without more was insufficient to state a concrete injury necessary to have…
Last Friday, in a long anticipated decision, the Ninth Circuit delivered a big win for consumers in the published opinion in Syed v. M-I, LLC. No. 14-17186, ___ F. 3d ___, 2017 WL 242559, at *1 (9th Cir. Jan. 20, 2017), available at http://cdn.ca9.uscourts.gov/datastore/opinions/2017/01/20/14-17186.pdf. Lawyers at Berger Montague represented amici…
Here is a scenario. A consumer disputes a debt that appears in his credit report. The creditor investigates the debt, does not change the reporting, and does not report the debt as disputed. The consumer continues to dispute, but the furnisher and the consumer reporting agencies report the debt and…
Under Article III of the federal constitution, a plaintiff must allege a “concrete and particularized” “injury-in-fact” in order for a federal court to have jurisdiction to adjudicate the case. In May 2016, the Supreme Court issued its much anticipated decision in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016)…
Most consumers are familiar with the big three consumer reporting agencies (“CRA”), Equifax, TransUnion, and Experian. While those three agencies dominate the market for credit reporting, there are a number of other, more specialized consumer reporting agencies that focus on particular types of background or financial reporting. The Consumer Financial…
Today, I am going to discuss an issue of affirmative defenses and the Fair Credit Reporting Act (“FCRA”). The FCRA covers a lot of ground and imposes a myriad of duties consumer reporting agencies, users of consumer reporters, and furnishers of information. As one appellate court described it, “the breadth…
When a potential client contacts me because of an issue with a background check, the first thing that we have the client do is make a request for the consumer’s “full file” from the background check company. Under the Fair Credit Reporting Act, 15 U.S.C. § 1681g(a) consumer reporting agencies…
The Fair Credit Reporting Act provides: “Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates.” 15 U.S.C. § 1681e(b). In order to bring a claim under this section, a…
Traditional credit reports issued by the big three credit reporting agencies, Experian, Equifax, and TransUnion, do not include any criminal records in their reports. But the reports still do include three types of public records that can cause harm to consumers if they are erroneously reported. 1. Bankruptcy The first…
Today I am going to answer some more frequently asked questions that we receive regarding criminal background checks. My conviction from 20 years ago continues to show up on my background check. I thought companies could only go back seven years. Is this illegal? Under an older version of the…
The Fair Credit Reporting Act strictly limits the purposes for which credit reports can be accessed. 15 U.S.C. § 1681b. One permissible purpose is the so-called” account review” purpose which allows a creditor to obtain a credit report on a consumer with whom it has a credit relationship. Specifically, the…
People who have been harmed by inaccurate or unfair background checks and are considering a lawsuit often have questions about the lawsuit process. This blog post will hopefully answer some common questions. How do I know if I have a case? In general, to have a case under the Fair…
The Fair Credit Reporting Act provides for protections for job applicants who may be denied a job based on a background check. One of the core protections is the pre-adverse action notice requirement which provides that before taking any adverse action based in whole or in part on a consumer…