Nationwide CRA Charged With Violating FCRA

A civil complaint was filed against a nationwide leading Credit Reporting Agency (CRA) for violating both Federal and State law by furnishing information to retailers about criminal cases involving suspicion of theft or fraud that did not result in a conviction.

It is alleged that the CRA sold memberships to retailers who would provide information regarding theft or fraud back to the CRA’s proprietary database (known as “Retail Theft Contributory Database”) that could be used by employers as part of an employment background check.

The complaint also alleges that database members “have no incentive to take the time, effort, expense and development of proof necessary to criminally prosecute individuals they accuse of theft or fraud.

Instead members use the existence of other member’s detention records…as an equivalent to legal action for purposes of hiring decisions even though their secret process strips accused employees and consumers of due process safeguards provided in legal actions.”

This specifically means that job applicants aren’t afforded the opportunity to dispute the information reported on them by this database, which is in clear violation of the Fair Credit Reporting Act and California law.