Tag: SSN verification

Major Consumer Reporting Agency Faces Class Action Over SSN Verification Issues April 20, 2023 A proposed class action suit alleged that a major consumer reporting agency (CRA) violated federal law. According to the case, the CRA did not implement reasonable procedures to ensure its consumer reports have the maximum possible accuracy. The lawsuit claims the CRA violated the Fair Credit Reporting Act (FCRA). It alleged that the CRA reported one consumer's Social Security Number (SSN) as unverified. In addition to this mistake, it did not provide all the data collected about individuals when asked for a complete file disclosure. The suit explained that employers use the SSN verification product the CRA offers to confirm whether potential employees have valid SSNs. As such, the verification process searches the CRA's database and checks if the applicant matches an SSN in its records. Once informed by the CRA of the results, the employer typically uses this information when deciding whether to hire the applicant. The complaint detailed how the plaintiff applied for a job with a prominent drugstore chain in May of 2021. As such, the company requested permission to use a third party to run a background check on the applicant. According to the complaint, the company's SSN verification came from the defendant. However, the CRA's verification system failed due to a system mistake. As a result, the CRA incorrectly informed the third-party company that the plaintiff's SSN did not match any in its records. The third party then sent this information to the drugstore. This mistake caused the drugstore to consider the plaintiff ineligible for employment. However, this case revealed that the plaintiff has a valid SSN and authorization to work in the United States. As a result of this determination, a manager took the plaintiff aside and terminated her due to the consumer report. As a result, the plaintiff requested her file from the CRA to investigate the issue. The lawsuit claimed the CRA provided information that did not relate to the SSN verification. In response to this, the court claims that the CRA violated the FCRA's requirements despite full awareness of its requirements. In addition, the lawsuit seeks to represent individuals impacted by the CRA's failure to verify their SSNs. This suit would include those affected within the previous two years and request their file. However, the defining condition requires that they did not receive information regarding their SSN. As this lawsuit clearly illustrates, accuracy is crucial for consumer reports for employment. The best way to do this is to partner with a trustworthy background check provider. The right partner will have experience with the FCRA, its requirements, and all state and local consumer reporting laws. Pre-employ makes background checks easy and reliable. Speak with a compliance expert today. Source

Tag: SSN verification

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