CFPB Settles with Background Screening Company for $8.5M to Resolve Alleged FCRA Violations

The CFPB recently settled with an employment background screening company to resolve allegations that the company violated the FCRA.  Among other allegations, the complaint asserts that the company:  (i) failed to ensure that public record information that was included in consumer reports was complete and up to date; (ii) did not notify consumers that public record information was being reported; and (iii) reported adverse information about consumers outside of the allowable reporting period.  Under the stipulated judgment, in addition to injunctive relief, the company will be required to pay $6 million in monetary relief to affected consumers and a $2.5 million civil money penalty.  Finally, for five years from the effective date of the settlement, the company must remain registered on the CFPB’s Company Portal and within fourteen days from the effective date of the settlement, it must establish a Compliance Committee to oversee compliance with the stipulated final judgment and order.