Tag Archives: FCRA

Supreme Court Issues Highly Anticipated Spokeo Decision

The Supreme Court released its highly anticipated decision yesterday in Spokeo, Inc. v. Robins, which addresses whether plaintiffs have standing to pursue statutory damages even in the absence of actual harm under the Fair Credit Reporting Act (“FCRA”).  As we previously reported, the case was expected to have significant down-stream implications for standing in privacy … Continue Reading

EEOC and FTC Issue Joint Guidance on Background Checks Performed by Employers

By Lindsay Burke and Brian Fitzpatrick On March 10, 2014, the EEOC and the FTC issued joint guidance on how the anti-discrimination laws and the Fair Credit Reporting Act (“FCRA”) apply to background checks performed by employers for employment application purposes. This guidance is published in two documents, one directed at employers and the other … Continue Reading

Judge Reduces Punitive Damages Against Equifax in FCRA Suit

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 … Continue Reading

Senate Panel Examines Data Broker Industry; Releases Staff Report

Yesterday, the U.S. Senate Committee on Commerce, Science, and Transportation held a hearing entitled, “What Information Do Data Brokers Have on Consumers, and How Do They Use It?”   Committee members expressed interest in bringing about greater transparency to what information is collected by data brokers and how it is used at the hearing, which consisted … Continue Reading

FTC Official Highlights FCRA Enforcement as a High Priority

Earlier this month, Maneesha Mithal, Associate Director of the Federal Trade Commission’s Division of Privacy and Identity Protection, testified before the U.S. Senate Subcommittee on Consumer Protection, Product Safety, and Insurance regarding consumer report accuracy and the FTC’s efforts to improve accuracy through education and enforcement.  Her testimony emphasized the impact that consumer report errors may … Continue Reading

FTC Study Details Inaccuracies in Credit Reports

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 the … Continue Reading

FFIEC Proposes Social Media Guidance

On January 22, 2013, the Federal Financial Institutions Examination Council proposed guidance on the applicability of consumer protection and compliance laws, regulations, and policies to activities conducted via social media by depository institutions.  The proposed guidance would not impose additional compliance obligations on institutions.  Instead, the guidance is intended to help financial institutions understand potential … Continue Reading

FTC Enters into Consent Order with Mobile Application Developers for Fair Credit Reporting Act Violations

Last week, the Federal Trade Commission entered into a consent order with two companies alleged to have operated as consumer reporting agencies, by providing criminal record reports through mobile applications, without complying with the Fair Credit Reporting Act (FCRA).  The consent order represents the FTC’s first FCRA case involving mobile applications.  According to the FTC’s complaint, Filiquarian … Continue Reading

Government May be Immune to Suits Alleging Violations of FACTA

The U.S. Supreme Court ruled on Tuesday that the federal government does not always lose its sovereign immunity to damages lawsuits claiming that an agency violated the Fair and Accurate Credit Transactions Act (“FACTA”) by printing the expiration date of a credit card on a receipt issued to a consumer. In a unanimous decision, authored … Continue Reading

CFPB Study Assesses Differences in Credit Scores Sold to Consumers and Creditors

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 in … Continue Reading

FTC Obtains Second Largest Civil Penalty Under FCRA

An employment background screening company will pay a $2.6 million civil penalty to settle Federal Trade Commission charges under the Fair Credit Reporting Act.   The FTC alleged that HireRight Solutions, Inc., which compiles background reports to assist employers in making hiring and other employment-related decisions, is a consumer reporting agency since its reports “bear on … Continue Reading

CFPB Issues Rule to Supervise Larger Participants in Consumer Reporting Market

The Consumer Financial Protection Bureau (CFPB) has issued a final rule to implement its authority under section 1024 of Dodd-Frank to subject “larger participants” in the consumer reporting market to CFPB supervision.  The rule will have significant consequences for companies in the consumer reporting industry.  The final rule follows a proposed rule issued in February … Continue Reading

FTC Raises Fair Credit Reporting Act Concerns with Background Screening Application Marketers

On February 7, 2012, the Federal Trade Commission sent letters to six marketers of mobile applications that provide background screening services.  The applications, including “Police Records,” “Criminal Pages,” and “Locate Anyone,” provide criminal record histories that, if used for employment or other Fair Credit Reporting Act (FCRA)-related purposes, may subject the marketers to treatment as … Continue Reading

Class Action Filed Following Zappos Data Breach

A putative class action was filed on Monday against Amazon.com following an online hacking attack that potentially compromised the personal information of up to 24 million customers of its online shoe retailer Zappos.com.  An email sent to customers from Zappos.com’s CEO on Sunday assured users that full credit card information and other payment information was not … Continue Reading

CFPB Supervision and Examination Manual Provides Procedures for Examining Compliance with Financial Privacy Laws

In mid-October 2011, the Consumer Financial Protection Bureau (CFPB) released version 1.0 of its Supervision and Examination Manual.  Pursuant to Dodd-Frank, the CFPB has primary examination authority for compliance with federal consumer financial laws over banks having $10 billion or more in assets and their affiliates, such as banks’ service providers, as well as certain … Continue Reading

New California Law Restricts Use of Credit Reports for Employment Purposes

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 … Continue Reading

CFPB Opens for Business

Today, the Consumer Financial Protection Bureau (“CFPB”) assumed certain powers and authorities set forth in Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The CFPB is tasked with implementing and enforcing Federal consumer financial laws to ensure that consumers have access to markets for consumer financial products and services, and that … Continue Reading
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