On August 12, the National Consumer Law Center (NCLC), a prominent consumer advocacy group, petitioned the CFPB to open rulemaking under the Equal Credit Opportunity Act (ECOA) to expand the definition of “credit” to include...more
The CFPB has issued a Circular addressing adverse action notification requirements and the proper use of the CFPB's sample forms provided in Regulation B when using artificial intelligence (AI) and complex credit models, and...more
The CFPB issued guidance for lenders on the use of artificial intelligence (AI) when determining whether or not to extend credit to consumers. The guidance clarifies that creditors relying on AI or other complex credit...more
A new FTC blog post titled “Tenant background check reports: Put it in writing” reminds landlords, property managers, and other housing providers of their obligation under the Fair Credit Reporting Act to provide notice of...more
Adverse action notices, a perennial compliance issue, should not be neglected and, indeed, warrant closer scrutiny. The CFPB has long been interested in adverse action issues....more
A common question that arises in the insurance-regulatory context, including in the context of insurance scoring and modelling, is whether, and to what extent, the McCarran-Ferguson Act applies to the FCRA. The information...more
On March 20, the CFPB published a final rule in the Federal Register to make non-substantive technical corrections and updates to Bureau and other federal agency contact information found within Regulations B, E, F, J, V, X,...more
The Supreme Court recently decided to take a closer look at the False Claim Act’s (FCA) Scienter Standard after two contentious Seventh Circuit case panel rulings. See U.S. ex rel Schutte v. SuperValu Inc., No. 21-1326, and...more
As insurers consider augmenting the quoting process with algorithmic predictive models, including those aided by artificial intelligence, machine learning, and/or robotic process automation (“Models”) for which core inputs...more
By Jason Wyman On March 20, 2020, the Ninth Circuit issued its opinion Walker v. Fred Meyer, Inc., 2020 U.S. App. LEXIS 8809 (9th Cir. Mar. 20, 2020) and created a “concise explanation” standard to judge when an employer’s...more
United States District Court Judge Marilyn L. Huff recently certified a FCRA settlement class, granted final approval of class settlement, and approved the plaintiffs’ request for attorneys’ fees and costs. Feist v. Petco...more
• The Consumer Financial Protection Bureau (CFPB) has issued an interim final rule requiring employers to update the summary of rights form given to applicants and employees in conjunction with a background check by a...more
15 U.S.C. 1681c of the Fair Credit Reporting Act (“FCRA”) governs the requirements for information contained in consumer reports. Section 1681c(a) provides that there are six categories of information that are generally...more
On September 10, 2018, in Long v. Southeastern Pennsylvania Transportation Authority (SEPTA), the U.S. Court of Appeals for the Third Circuit joined the chorus of recent circuit court opinions tackling the question of...more
On August 29, 2018, the U.S. Court of Appeals for the Seventh Circuit issued its opinion in Robertson v. Allied Solutions, LLC, holding the plaintiff had standing to sue in federal court under the Fair Credit Reporting Act...more
Seyfarth Synopsis: In the last three years, employers have seen a sharp increase in the number of employment class actions under the Fair Credit Reporting Act (FCRA). Most of the reported cases involve challenges to the...more
Applicant background reports can be vital tools for employers, especially in the hiring process. However, amendments to the Fair Credit Reporting Act (“FCRA”) significantly increase the rights of applicants and employees to...more
In early 2016, the California Fair Employment and Housing Council (FEHC) proposed regulations that are intended to define and clarify how using a person’s criminal history may violate the Fair Employment and Housing Act...more
A new Philadelphia ordinance amending the City’s Fair Practices Act goes into effect on July 7, 2016. The amendment severely limits an employer’s ability to procure and use credit information on most applicants and employees...more
On June 7, 2016, Philadelphia Mayor Jim Kenney signed into law Philadelphia Bill No. 160072, which amends Philadelphia’s “Fair Practices Ordinance: Protections Against Unlawful Discrimination,” Chapter 9-1100, et seq. of the...more
In the last two years, the number of employment class actions under the federal Fair Credit Reporting Act (FCRA) has ballooned. Most of the cases reported in the media have involved challenges to an employer’s compliance with...more
On October 29, the CFPB took action against two of the country’s largest employment background screening report providers for violations of the FCRA. This is one of the CFPB’s most significant FCRA actions to date, following...more
We were pleased to host a program on September 28, 2015 on New York City’s two new background check laws, the Stop Credit Discrimination in Employment Act and the Fair Chance Act. Paul Keefe, Supervising Attorney at the NYC...more