November 11, 2024
A major national consumer reporting agency (CRA) recently agreed to settle allegations concerning an inaccurate background check. In this allegation, a potential employer received this erroneous report that led to the dismissal of the otherwise qualified applicant. The plaintiff claimed the report contained two criminal convictions for another individual with a similar name, thus losing them the job opportunity.
As a result, the plaintiff filed a complaint with the U.S. District Court for the Northern District of Texas. The issue began when the plaintiff received a job offer for a delivery driver position contingent on the results of a background check. After the plaintiff agreed to the screening, the employer requested a background check from the defendant, who proceeded to prepare a report.
The report allegedly contained two misdemeanor convictions: one for possession of cannabis and another for driving while intoxicated. After the plaintiff disputed this report, the employer claimed they could not continue the hiring process until the background check cleared. The lawsuit claims these criminal convictions concerned a different person with a similar name and a different driver’s license number.
Furthermore, the complaint revealed how the plaintiff attempted to contact the CRA but never received a response. Due to this, the plaintiff alleged that he lost the job opportunity because the employer could not continue the hiring process without a corrected screening report. This complaint follows several similar cases where alleged inaccurate background checks resulted in lost employment opportunities.
This case, much like similar cases, claimed the defendant violated the Fair Credit Reporting Act (FCRA). The FCRA is one of the foremost laws governing the background check process. The FCRA regulates this process by enforcing strict requirements for how CRAs collect and deliver background screening reports. For example, CRAs must utilize “reasonable procedures to assure maximum possible accuracy” of the information they report on individuals.
In this case, the plaintiff claimed that the CRA included information about criminal convictions unrelated to them. Instead, this information pertained to an entirely different individual. According to the complaint, the report contained information for someone with a different last name, address, social security number, and driver’s license number. Despite receiving a notification of the error, the lawsuit claims that the CRA failed to take prompt steps to correct the issue.
Recently, the parties reached a settlement agreement to address the FCRA violations. The involved parties expect a finalized decision within 45 days of their notice to the court.
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