The Swelling Tide of Fair Credit Reporting Act (FCRA) Class Actions: Practical Risk-Mitigating Measures for Employers

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In This Issue:

- Summary Of FCRA Obligations On Employers That Use Consumer Reports

- Potential Liability For FCRA Non-Compliance

- The Swelling Tide Of Class Action Filings

- Mitigating Measures

- Conclusion

- Appendix A – Relevant Portions Of Section 604 Of The FCRA

- Excerpt from Summary Of FCRA Obligations On Employers That Use Consumer Reports:

The FCRA imposes requirements on employers who use “consumer reports” or “investigative consumer reports” for employment purposes. A consumer report is known as a credit report or a background report prepared by a CRA, whereas an investigative consumer report is a special type of consumer report whereby the CRA obtains information through personal interviews (e.g., an in-depth reference check).

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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