Skip to main content
Menu Icon
Close

InfoBytes Blog

Financial Services Law Insights and Observations

CFPB Enforcement Action Targets Background Check Company's Screening Practices

CFPB FCRA Enforcement

Consumer Finance

On October 29, the CFPB announced a consent order with a national employment background screening provider and its affiliate for alleged violations of the FCRA. According to the CFPB, the company and its affiliate failed to (i) use reasonable procedures to assure maximum possible accuracy of the information in reports that they provided to employers; (ii) take appropriate measures to ensure that non-reportable information, such as civil suits and civil judgments older than seven years, was not included in reports; and (iii) comply with the requirement to maintain “strict procedures” to ensure complete and up to date information in reports or notify consumers when the reported information was likely to have an adverse effect on their ability to obtain employment. Under the terms of the consent order, the company and its affiliate are required to provide $10.5 million in relief to consumers and pay a $2.5 million civil money penalty. In addition, the company and its affiliate must revise their compliance procedures and hire an independent consultant to assess their policies, procedures, staffing levels, and systems.