CrimShield, Inc. provides background reports to help companies screen prospective employees. At times, it does more than that, reviewing the reports itself and determining whether the subject of report should be hired. The complaint for this class action alleges that CrimShield does not complaint with the Fair Credit Reporting Act (FCRA) in how it obtains or uses the reports.
The three classes defined for the action include a Certification Class, an Adverse Action Class, and a § 1681k Class.
The Certification Class
The Certification Class is all employees and job applicants in the US about whom CrimShield provided a consumer report for employment purposes without the user’s valid certification of compliance with the law, between March 27, 2014 and the final judgment in this case.
Credit reporting agencies (CRAs) such as CrimShield can only provide reports to companies who certify that they have complied with the law’s disclosure requirements and will comply with its notice requirements. If a company does not provide these certifications, it is not legal for the CRA to provide them with a report.
According to the complaint, CrimShield does not obtain these certifications. It requires companies to use its own forms for disclosure and authorization. However, the complaint says that CrimShield’s forms do not meet the requirements of the FCRA, meaning that the disclosure and authorization requirements have not been satisfied.
The Adverse Action Class
The Adverse Action Class is all employees and job applicants in the US who were the subject of an adverse employment action based on a consumer report used by CrimShield to determine the employee or applicant was not eligible for employment, between March 27, 2014 and the final judgment in this case.
The complaint then alleges that CrimShield qualifies as a “user” of many of the reports it generates under the FCRA: Companies must use CrimShield’s forms for disclosure and authorization; CrimShield reviews the reports according to the company’s criteria; and CrimShield makes the determination of whether the subject is eligible for employment with the company. The complaint claims that companies normally follow CrimShield’s determinations. Thus, it claims, CrimShield’s determinations amount to an “adverse action” under the FCRA.
The FCRA § 1681k Class
The FCRA § 1681k Class is all employees and job applicants (a) who were the subject of a CrimShield report issued between March 27, 2014 and March 27, 2019, used by CrimShield to determine the person’s eligibility for employment with a third party (b) that was provided for employment purposes, (c) that contained a public record, (d) where CrimShield did not place in the mail a proper adverse action notice on the day it made use of the report.
The FCRA requires that when an adverse action is taken based on a report, the user of the report must give the subject an adverse action notice along with a copy of the report. The complaint says that CrimShield does not do this.
Article Type: LawsuitTopic: Consumer
Most Recent Case Event
CrimShield Background Report Requirements FCRA Complaint
March 27, 2019
CrimShield, Inc. provides background reports to help companies screen prospective employees. At times, it does more than that, reviewing the reports itself and determining whether the subject of report should be hired. The complaint for this class action alleges that CrimShield does not complaint with the Fair Credit Reporting Act (FCRA) in how it obtains or uses the reports. The three classes defined for the action include a Certification Class, an Adverse Action Class, and a § 1681k Class.
crimshield_background_reports_compl.pdfCase Event History
CrimShield Background Report Requirements FCRA Complaint
March 27, 2019
CrimShield, Inc. provides background reports to help companies screen prospective employees. At times, it does more than that, reviewing the reports itself and determining whether the subject of report should be hired. The complaint for this class action alleges that CrimShield does not complaint with the Fair Credit Reporting Act (FCRA) in how it obtains or uses the reports. The three classes defined for the action include a Certification Class, an Adverse Action Class, and a § 1681k Class.
crimshield_background_reports_compl.pdf