Skip to the main content.
New! Continuous MVR monitoring
Driving record monitoring

Ongoing monitoring of driving records can help employers avoid risk and improve driver safety. Learn about the benefits of adding Verified Credentials' newest solution to your screening strategy.

Read the blog ›

Featured resource

Industry-Trends-Report-01

Learn the latest trends in employment background checks. This report uses real-life usage data to uncover how employers are screening across industries.

Download the full report ›

Verified Credentials is a leading background screening company. Since 1984, we’ve helped validate and secure relationships through the use of our comprehensive screening solutions. We offer a wide variety of background checks, verifications, and innovative screening tools.

Get to know us ›

Accredited background screening solutions

Logo-PBSA-Accreditation-120x98

Our accreditation confirms that our policies, processes, and employee training meet rigorous industry compliance standards.

Learn about our solutions ›

1 min read

Compliance Report: Upward Trend of FCRA Litigation

Blog_Standard image - yellow

Interpretations and understanding of what the Fair Credit Reporting Act (FCRA) means to employers are snowballing, thanks in large part to the rise of legal cases helping to define duties of employers. 

The FCRA is a notoriously tough law to understand. As an employer who uses a background screening company to collect background information on their applicants and employees (called “Consumer Reports” under the FCRA), you know well that you have obligations under the law. In addition to potential duties for some employers, the FCRA contains extremely technical requirements and has an abundance of shifting interpretations. The nature of the FCRA has created a seemingly “perfect storm” for potential litigation.  

An uptick in FCRA claims filed

There has been a persistent upward trend for filed FCRA litigation. Every year seems to see more FCRA claims filed than the last. Just take a look at the numbers pulled from WebRecon, a company that tracks hot areas of consumer protection litigation:

YEAR NUMBER OF FCRA CLAIMS
2014 2,501
2015 3,807
2016 3,954
2017 4,346
2018 4,531

 

In the past five years, there has been an approximate 81.2% increase in annual FCRA claims filed,  a staggering rise in FCRA claims. Year-over-year increases point to an acute trend, not just long-term tipping of the scale. 

And the upward trend doesn’t show any signs of slowing. Just this year, there were 3,297 FCRA cases filed between January and August alone. Compared to this same period in 2018, there is an increase of nearly 5.1% so far in 2019. To see the numbers for yourself, click here. 

More FCRA claims, more problems

No employer wants to become another statistic in the upward trend of FCRA litigation. With these numbers in mind, maybe it’s time you took another look at your background check forms and background check policies. You may want to check with an experienced background screening partner, like Verified Credentials, to see if they have any reference or sample forms to get you thinking critically about your background check program.

A thoughtful review of your duties under the FCRA is no small task. Before you make any changes to your background screening program, work with a trusted legal advisor to help ensure that you comply with federal, state, and local laws.

The Value of Monitoring Employee Driving Records

The Value of Monitoring Employee Driving Records

Employees who drive on the job might present some of the highest risks to an organization. In fact, car accidents are the leading cause of workplace...

Read More
Employees on the Road: The Benefits of Continuous Driver Monitoring

Employees on the Road: The Benefits of Continuous Driver Monitoring

If you screen employee driving records, you are probably invested in the safety of your drivers and their actions on the road. There is now an easier...

Read More
Put Your ID Trace to Work: Automate and Expand Your Search Reach

Put Your ID Trace to Work: Automate and Expand Your Search Reach

An ID trace, sometimes called a Social Security Number (SSN) trace, is a common starting point of a background check. This solution isn’t what you...

Read More
Keeping Up with FCRA Compliance Requirements [Free Checklist]

Keeping Up with FCRA Compliance Requirements [Free Checklist]

HR leaders have to stay in front of a lot of regulatory concerns. Maintaining compliance with the Fair Credit Reporting Act (FCRA) with background...

Read More
Benchmark Report: HR Spotlight on Compliance & Employment Law

Benchmark Report: HR Spotlight on Compliance & Employment Law

Compliance is one of the top human resource issues employers need help to grasp. It’s also one of the most crucial areas for HR to understand. ...

Read More
Background Screening Compliance 101: FCRA Summary of Rights

Background Screening Compliance 101: FCRA Summary of Rights

The background screening process is built with the candidates in mind. That includes the built-in and mandatory compliance steps that employers that...

Read More