Tag: Credit Reporting Bureau

Credit Reporting Bureau To Pay $2.7 Million to Settle FCRA Class Action June 13, 2023 A credit bureau must pay $2.7 million to settle a class action lawsuit under a deal that received preliminary approval from a federal court. The lawsuit claims the company gave false information to automobile dealerships on consumers' credit reports. According to the case, the credit bureau reported that they found some potential buyers on the Department of Treasury's watch list, which enforces trade sanctions. If the settlement receives final approval, each of the 1,071 class members will receive a $1,000 payment. The involved parties do not have to file a claim or do anything else to receive the payment. The plaintiff filed this lawsuit in the U.S. District Court for the Eastern District of California. According to the case, he attempted to buy a car based on the information provided in a credit report by the defendant. He also revealed that the credit report he received did not belong to him but to a North Korean person with a similar name. This mix-up made it impossible for the plaintiff to buy a car. According to the lawsuit, the Treasury Department has regulations that ban car dealers from conducting business with anyone designated as a "Specially Designated National." This designation appears on a list maintained by the Treasury Department's Office of Foreign Assets Control, which the North Korean person appeared on. The plaintiff alleged that the credit bureau did not have reasonable procedures to ensure that it supplied accurate information to car dealerships. Thus, he claimed the credit bureau violated the Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act. As a result, Magistrate Judge Sheila K. Oberto granted the plaintiff's motion requesting preliminary approval for the deal. In addition to the $1,000 the class members would get, the plaintiff would receive up to $15,000 as a service reward. In addition, the attorneys would get $1.62 million separately to cover fees and costs. The credit bureau would also pay the $44,000 cost of administering the settlement. The hearing to decide whether the settlement will receive final approval will occur on October 25. This case shows the importance of complying with the FCRA. The best way to ensure accurate credit reports or background checks is by partnering with a trustworthy screening company. The right provider will deliver accurate, timely, and compliant reports. Background checks are made easy with Pre-employ. Ask any questions you may have and learn more by contacting a sales rep today. Source

Tag: Credit Reporting Bureau

Credit Reporting Bureau To Pay $2.7 Million to Settle FCRA Class Action

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