CFPB announces consent order with employment background screening report providers

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The CFPB recently announced that it has entered into a consent order with two affiliated companies that generate and provide employment background screening reports. The consent order settles charges that the companies, which the CFPB’s press release describes as “two of the largest background screening report providers in the United States,” violated FCRA requirements for consumer reporting agencies. It requires the companies to pay a $2.5 million civil penalty and $10.5 million in redress to consumers.

The settlement also serves as a reminder to employers that the use of background checks when making personnel decisions can create compliance obligations under the FCRA.

For more on the consent order, see our legal alert.

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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