You may recall that in October, I issued an update regarding the issuance of the new FCRA “Summary of Consumer Rights” form. Well, the FCRA continues to be a source of confusion and risk. The Act contains a series of steps that one must follow, and the failure to do any of them can create liability.
A federal Court recently held that an employer violated the Act when it failed to provide a copy of a consumer report to an applicant before it took an adverse action against her. In this particular case, the employer rejected three applicants who had prior drug-related convictions. Unfortunately, the employer failed to provide the applicants with copies of their consumer reports and notices of their rights under the Act before making this decision. Continue reading “The Fair Credit Reporting Act Is Tricky”