FCRA Violations Cost Two Companies $13 million

Two well-known background check companies have been hit with $13 million in fines and penalties due to violations of the Fair Credit Reporting Act (FCRA).  The charges were brought by the Consumer Financial Protection Bureau (CFPB).  The charges claimed that the companies failed to ensure that the background checks being produced for employers had accurate information about the job applicants. In short, there has been little to no quality assurance conducted on the reports, indicating a lack of due diligence on the part of the providers.

Quality assurance is a basic step in any background check. PeopleG2 checks every background check for accuracy against all available identifiers that are returned to ensure proper and accurate reporting. PeopleG2 prides itself on its attention to detail and the personal touch applied to each result.

The CFPB identified these two major players in the background check market as ones that were simply returning information found without cross checking for accuracy.  Unfortunately for the over 11,000 people affected by these erroneous results, they quite possibly could have been denied an employment opportunity.  According to the CFPB, not only was there no quality assurance to ensure report accuracy, but there was also no policy in place for researching people with common names, and no middle name requirement.  Reports were returned to the prospective employers with inaccurate criminal records and inaccurate reporting of the level of crime (felony vs. misdemeanor).  All of these things are easily avoidable, and this type of litigation should be taken into consideration when a company is deciding who to hire to conduct their background checks.

We recognize that this can be a very disconcerting finding for companies that put their trust in a background check provider.  If there are specific questions regarding these processes and what PeopleG2 does to ensure that every result is reviewed for accuracy on every criminal background check, please contact our Customer Service Department.