Baltimore Fair Credit Reporting Act (FCRA) Support

Common Violations of the FCRA

Despite the comprehensive safeguards provided by the Fair Credit Reporting Act (FCRA), violations are not uncommon and can have serious repercussions for consumers. Understanding these common infractions is vital for recognizing when your rights have been infringed upon and taking necessary legal action. 

Here are some typical violations of the FCRA:

• Failure to obtain proper consent: Before conducting a background check, employers must obtain written consent from the individual. This disclosure must be clear and conspicuous, typically in a document that stands alone from other employment materials. A common violation occurs when employers fail to provide this notice or include it alongside other documents, diluting its importance.
• Insufficient disclosure: Employers must inform applicants that their credit information will be used as part of the hiring process. This disclosure must explicitly state that the report may affect employment decisions, and should be provided before the report is obtained. Violations occur when this information is not clearly communicated.
• Inaccurate information reporting: Consumer Reporting Agencies (CRAs) are responsible for ensuring the accuracy of the data they compile and distribute. Errors in credit reports, such as incorrect account information, outdated data, or mistaken identity issues, can significantly impact a consumer's financial standing. These inaccuracies are a direct violation of the FCRA.
• Failure to provide pre-adverse action notices: If an employer decides to take adverse action (e.g., not hiring an applicant) based on information in a consumer report, they must first provide a pre-adverse action notice. This notice should include a copy of the report and a summary of the consumer’s rights under the FCRA, allowing the individual to dispute inaccuracies. Failure to do so constitutes a violation.
• Failure to provide adverse action notices: After taking adverse action, an employer must send an adverse action notice, which includes specific information such as the name and contact details of the CRA that provided the report, a statement that the CRA did not make the decision, and the consumer’s right to dispute the report. Neglecting this step is another common violation.
• Unauthorized use of consumer reports: Employers and other entities must have a permissible purpose for obtaining and using a consumer report. Using these reports without a legitimate reason or beyond the scope of what was disclosed to the consumer is an infringement of the FCRA.
• Lack of reasonable reinvestigation: When a consumer disputes information in their credit report, CRAs are required to conduct a reasonable reinvestigation into the claim. A failure to properly investigate and correct any errors within 30 days is considered a violation.
• Improper data sharing: The FCRA imposes strict limitations on who can access your credit information and under what circumstances. Unauthorized sharing of your credit data with third parties without your explicit consent breaches the FCRA's privacy protections.

Understanding these violations helps consumers recognize when their rights have been compromised and underscores the importance of legal recourse. Emejuru Law is dedicated to assisting individuals in identifying these breaches and pursuing appropriate actions to ensure their rights are protected and upheld.