Credit Report

The Federal Trade Commission (“FTC”) has approved final orders settling charges against Fandango and Credit Karma that the companies misrepresented the security of their mobile apps and failed to protect the transmission of consumers’ sensitive personal information.  The FTC specifically alleged that, although the companies made security promises to consumers that their information was adequately…

A federal judge on Wednesday reduced a jury’s punitive damages award against Equifax from more than $18 million to $1.62 million, after finding that the jury’s award was unconstitutionally excessive despite Equifax’s “reprehensible” conduct in violating the Fair Credit Reporting Act.

Plaintiff Julie Miller sued Equifax under FCRA for failing to correct mistakes in the…

This week, the Federal Trade Commission released a study of the U.S. credit reporting industry and credit report accuracy.  The study found that five percent of consumers had errors on one of their three nationwide credit reports that could lead them to pay more for financial products.  The study is required under section 319 of…

Last week, the Consumer Financial Protection Bureau (CFPB) announced that it had established a process for assisting consumers with credit reporting complaints.  The CFPB previously had implemented similar processes for complaints relating to credit cards, mortgages, bank accounts and services, private student loans, vehicle, and other consumer loans.  The complaint process is intended to complement…

Last week, the Consumer Financial Protection Bureau (CFPB) released a study comparing credit scores sold to creditors and those sold to consumers.  The study found that approximately 1 in 5 consumers would, upon purchasing their credit score from a consumer reporting agency, receive a different credit score than the score provided to creditors for use…

On January 10, the U.S. Supreme Court ruled in CompuCredit Corp. et al. v. Wanda Greenwood et al. that the Credit Repair Organizations Act (“CROA”) does not override arbitration clauses in agreements between consumers and credit repair organizations.  The CROA prohibits credit repair organizations (i.e., companies that seek to improve a consumer’s…

Earlier this week, California became the latest state to restrict the use of consumer credit reports in the employment context, as Gov. Jerry Brown signed into law A.B. 22.  As we previously have blogged, a growing number of states–including Connecticut, Hawaii, Illinois, Oregon, Washington, and Maryland–have augmented the protections provided by the federal Fair Credit Reporting Act (“FCRA”) with laws that further limit the ways in which credit reports may be used in making employment decisions. Continue Reading New California Law Restricts Use of Credit Reports for Employment Purposes

On July 13, 2011, Connecticut adopted a law prohibiting certain employers from using employees’ or prospective employees’ credit report information in making employment or hiring decisions.  Hawaii, Illinois, Oregon, Washington, and Maryland also have statutes that prohibit employers’ use of credit report information for employment purposes.  Other states currently considering similar legislation include California, New…

As we reported in a prior post, there is a developing legislative trend to restrict employers’ use of credit report information in making adverse employment decisions (e.g., hiring, promotion, termination) regarding prospective or current employees.  There are currently 18 states considering legislation in this area: California, Indiana, Kentucky, Missouri, Nebraska, New Mexico, New York…

On January 19, U.S. Representative Steve Cohen (D-TN) introduced H.R. 321, the “Equal Employment for All Act,” which would amend the Fair Credit Reporting Act to restrict employers from using consumer credit reports to make adverse employment decisions (e.g., hiring, promotion, termination) regarding prospective or current employees.  The Act contains exceptions for, among other…