Consumer Reporting Agency Reaches $3.3 Million Settlement in Lawsuit Over Alleged FCRA Violations

gavelA $3.3 million settlement has been reached in a class action lawsuit that claimed a Consumer Reporting Agency (CRA) allegedly violated the federal Fair Credit Reporting Act (FCRA) when providing background check reports on job applicants for employment purposes, according to a report from Top Class Actions.

Top Class Actions reports that Plaintiff Michael A. Kelly claimed he was denied a job because of inaccuracies in a background check report from the CRA and at least one background check report “provided to Kelly’s employer contained false and derogatory information.”

Top Class Actions reports the CRA procured a “consumer report” – the technical term that the FCRA uses to describe a background check report for employment purposes – about Kelly from the nationwide credit reporting agency TransUnion in December 2013 and subsequently sold the consumer report to Kelly’s employer.

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