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Home Depot Background Check Disclosure FCRA Class Action

The Fair Credit Reporting Act (FCRA) intends to ensure that consumers’ credit reports are only accessed for certain limited, permissible purposes, and that consumers are properly informed of, and consent to, the access. The complaint for this class action alleges that Home Depot USA, Inc. did have a permissible purpose but did not properly perform the disclosure and assent process.

The class for this action is all employees who signed Home Depot USA’s standard FCRA form at any time between March 25, 2014 and the present. 

Home Depot sells home improvement items, including paint, lumber, tools, plumbing and lighting fixtures, flooring, and other products and materials that are needed by professional contractors and do-it-yourself customers. 

The company conducts background checks on prospective employees. This is one of the permitted purposes under the FCRA and the complaint has no argument with it. What the complaint argues against is Home Depot’s way of informing the prospective employee of the background check and obtaining authorization for it. 

Plaintiff Stephanie Coronado-Picazo applied for a position at Home Depot. The complaint alleges that Home Depot ran a background check on her.

The FCRA does not permit a background check to be made, the complaint says, unless “ clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or cause[d] to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes…” 

The complaint alleges that Home Depot’s disclosure form is incorrect because it also contains other information, such as state law notices. This violates the law in two ways, the complaint says: (1) It is not a standalone document consisting only of the disclosure, and (2) the disclosure is then no longer “clear and conspicuous.”

Another condition set forth by the FCRA is that “the consumer has authorized in writing … the procurement of the report.” The complaint claims that, because the disclosure was neither in a standalone document nor clear and conspicuous, Coronado-Picazo “was confused regarding the nature of her rights under the FCRA and could not give valid authorization for [Home Depot] to procure a consumer report…”

The complaint claims that “proper authorization is not possible without a legally compliant disclosure.” It asks for statutory damages of $1,000 per class member as well as the costs of the lawsuit. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Home Depot Background Check Disclosure FCRA Complaint

March 25, 2019

The Fair Credit Reporting Act (FCRA) intends to ensure that consumers’ credit reports are only accessed for certain limited, permissible purposes, and that consumers are properly informed of, and consent to, the access. The complaint for this class action alleges that Home Depot USA, Inc. did have a permissible purpose but did not properly perform the disclosure and assent process.

home_depot_bkgd_check_fcra_compl.pdf

Case Event History

Home Depot Background Check Disclosure FCRA Complaint

March 25, 2019

The Fair Credit Reporting Act (FCRA) intends to ensure that consumers’ credit reports are only accessed for certain limited, permissible purposes, and that consumers are properly informed of, and consent to, the access. The complaint for this class action alleges that Home Depot USA, Inc. did have a permissible purpose but did not properly perform the disclosure and assent process.

home_depot_bkgd_check_fcra_compl.pdf
Tags: Background Reports, FCRA, Failure to provide proper notice and/or obtain proper authorization