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Employer Win in FCRA Case


The U.S. District Court for the Eastern District of Pennsylvania recently granted summary judgment to a bank and three CRAs in a Fair Credit Reporting Act (FCRA) case where the bank promptly corrected inaccurate payment information that had been sent to the CRAs.

The plaintiffs claimed violations of the FCRA because the bank incorrectly reported payments as delinquent. After one plaintiff sent a notice of dispute, the bank immediately investigated and determined that the account was reported delinquent in error. It then modified its reporting to “eliminate the past due amount, delete the delinquency notation, show the loan to be current, and report the loan as ‘paying as agreed.’” The two CRAs that reported the incorrect information received the update and made the correction, all within one month.

The court noted that the plaintiff had the burden of showing the furnisher failed to conduct a reasonable investigation of the dispute. However, it was clear by the facts presented that the bank not only conducted a reasonable investigation, but also timely provided the updated information to the CRAs. As such, the court held that there were no FCRA violations.

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The importance of FCRA compliance cannot be overstated. As such, Hire Image continues to provide the most up-to-date information, as it is made available. Please contact us if you have any questions about the FCRA or your own background screening policy.

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