The Consumer Financial Protection Bureau recently took action against General Information Services and e-Background-checks.com, Inc. The employment background screening reports provided by these companies through backgroundchecks.com contain serious inaccuracies and illegally included information. These illegal reports were then provided to job applicants’ prospective employers.
These companies provided 10 million consumer reports about job applicants every year. Employers use these consumer reports to determine hiring eligibility and other employment decisions.
Backgrounchecks.com failed to use basic procedures to match public records information to the correct consumer. Nearly 70 percent of criminal history disputes consumers filed with the companies resulted corrected information in the background screening reports.
Criminal records attached to the wrong consumer!
Dismissed, expunged records, and misdemeanor convictions were reported as felony convictions!
Backgroundchecks.com also illegally included information about civil lawsuits and old civil judgments in their employment background screening reports.
The Consumer Financial Protection Bureau is requiring General Information Services and e-Background-checks.com, Inc., to:
- provide affected consumers $10.5 million to effected consumers (about $1,000 in compensation to each effected consumer);
- revise their compliance procedures;
- retain an independent consultant;
- develop a comprehensive audit program; and
- pay a $2.5 million civil monetary penalty.
Inaccurate and illegal information in your employment background screening report or in your regular credit report can damage your reputation. This inaccurate and illegal information may keep a prospective employer from offering you a new job. The inaccurate and illegal information may also prevent you from that promotion you otherwise deserved.
If you believe your credit report or employment background screening report contains inaccurate information, Crowder McGaha, LLP, knows the steps you can take to rectify these errors under the Fair Credit Reporting Act. Sometimes these errors will only be corrected by filing a lawsuit against the furnishers of inaccurate information and the credit reporting agencies that refuse to remove the inaccurate information. A lawsuit may only be filed after consumer has notified the credit reporting agency of the inaccuracies in writing.
Contact us today if you believe there is inaccurate information in your employment background screening report or in your credit report.