In August, the Federal Trade Commission (FTC) charged a large background check company a record penalty of $2.6 million for violations of the Fair Credit Reporting Act (FCRA). This penalty came about due to the company’s inability, as a consumer reporting agency, to use the reasonable procedures available which assure that the end user receives the most accurate information available, as well as several other items that did not provide consumers or end users with the appropriate information and follow through. For the full article, please click here.
This is the second largest penalty that the FTC has obtained under the FCRA. It was noted that these penalties were severe enough that it warranted this type of action. It is also a clear indication that consumer reporting agencies are looked to for accurate information, and must adhere to all rules pertaining to FCRA compliance.
The company in question was charged with the following:
- Failing to maintain reasonable procedures to ensure that its consumer report information is as accurate as possible.
- Failing to provide consumers with information in their files in a timely manner; requiring consumers to obtain a copy of their report before the company will conduct a dispute reinvestigation.
- Failing to provide consumers with the results of a dispute reinvestigation.
- Failing to comply with the requirements for consumer reporting agencies that use public record information.
All of these items are practiced industry wide. PeopleG2, as a consumer reporting agency, is very aware of FCRA compliance, and conducts its business daily with these guidelines in mind. In fact, when the new FTC guidelines came to fruition as a result of this action, PeopleG2 already had each of these new guidelines in place as a part of their normal course of business.
As consumer reporting agencies, we are responsible for reporting accurate information to our clients. In an industry in which each and every company is highly scrutinized for their work and highly monitored by the FCRA on what is specifically reported back to a client, it is especially important to make sure these policies are followed. PeopleG2 takes these guidelines seriously, and has built in safeguards and procedures that ensure these items are never in question. Our clients expect accurate results and timely response to disputes, and we make this our goal to be the best in the employee background screening business.