Company settles FCRA class action for $1.1M

A court preliminary approved the settlement in the wake of allegations that the company violated the Fair Credit Reporting Act (FCRA) by providing inadequate disclosures that the company would be obtaining background checks for employment purposes.

Plaintiffs in the case of Moody v. Ascenda USA, Inc. dba 24-7 Intouch claimed the company failed to provide the stand-alone disclosure required by the FCRA that notified applicants and employees that background checks might be obtained for employment purposes. Rather, the company provided a form that included a liability release.

The plaintiffs claim the company invaded their right to privacy by obtaining the background checks without the necessary disclosure or consent.

The settlement class will include two distinct classes: one class of applicants or employees who signed the insufficient disclosure form and another class of individuals who were terminated or denied employment based in whole or in part on the results of their background check.

A final hearing to approve the settlement is set for March 2018.

Source: Wolters Kluwer Employment Law Daily

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