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Top 5 Settlements of 2017 for FCRA Violations, Number 1 is Record Breaking!

Compliance doesn’t just protect the applicant, it protects you! FCRA lawsuits for improper background check procedures are costly and below are a few of the highest settlements of 2017. You can bet if these huge companies are falling prey to simple FCRA regulation mistakes, smaller companies must always be vigilant.

5) JPMorgan $1.25 Million. J.P. Morgan Securities was fined for incomplete background checks, specifically these were FINRA requirements for fingerprint screening the company failed to complete.

4) Postmates $2.5 Million. The food courier service failed to properly notify potential employees violating FCRA regulations.

3) Avis – $2.7 Million. Avis settled a suit in November 2017 alleging improper background check procedures such as failure to provide adverse action notices and FCRA disclosures.

2) Uber $7.5 Million. Former Uber drivers who felt they were denied employment based on illegal background checks won a settlement from the rideshare giant in December 2017.

1) TransUnion $60 Million. A California jury awarded the largest settlement for FCRA violations ever in June of 2017. The lawsuit found TransUnion violated three FCRA provisions:

  • TransUnion failed to follow “reasonable procedures to ensure maximum possible accuracy of the information” regarding the OFAC alert contained in the plaintiffs’ consumer reports. (§ 1681e(b).)
  • TransUnion failed to clearly and accurately disclose all the information in the plaintiffs’ consumer reports upon their request. (§ 1681g(a).)
  • TransUnion failed to provide plaintiffs with a summary of their rights under the FCRA. (§ 1681g(c)(2)(A).)

The TransUnion settlement is the highest ever imposed for violating FCRA regulations. Many companies big and small fall prey to FCRA lawsuits, attorneys are getting better and better at marketing their services and no matter how big your company is if you’re not in compliance you can bet you will be sued. That’s why it’s important to ensure your company follows FCRA and State regulations.

Compliance with HireSafe is easy with notification, required FCRA documents, authorization and more provided electronically. You can sign up for our newsletter to stay on top of ever changing background screening regulations or check out our pre-employment screening options.

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