The Fair Credit Reporting Act isn’t just about credit. If your company uses background checks in making personnel decisions, the FTC reminds you of your obligations under the FCRA. In honor of Throwback Thursday, here’s an unconventional old-school summary of key requirements under federal law. Spin the mirrored disco ball and join us on the dance floor for “F-C-R-A.”
Blog Posts Tagged with Credit Reporting
Does your company use background checks in evaluating job applicants? If so, are you complying with the Fair Credit Reporting Act’s notice, consent, and disclosure requirements? A closing letter the FTC staff sent to California Health & Wellness elaborates on the applicability – or, in this instance, the inapplicability – of a narrow FCRA exception.
Maybe it’s a suspicious tax document flagged by your HR staff or a customer concern about an unauthorized charge. Identity theft can reveal itself in many ways. Regardless of the tip-off, there’s a new one-stop federal resource – IdentityTheft.gov – to help people report and recover from ID theft.
As the name suggests, Green Tree Servicing was supposed to service homeowners’ mortgages by collecting and crediting monthly payments. But according to a $63 million settlement announced by the FTC and CFPB, rather than service, Green Tree gave many homeowners the business.
If you handle personnel matters for your company, Background Checks: What Employers Need to Know should be on your desk. The joint FTC-EEOC publication offers dos and don’ts for businesses when looking into the background of prospective employees or current staff up for promotion, retention, transfer, etc. But if it’s time for a compliance double-check, the FTC just issued a new brochure that could serve as a cross-reference.
53 and it’s likely to go up. That’s the number of data security law enforcement actions the FTC has settled so far. The facts of each case are different, but distilled down to the basics, they stand for one central proposition: Your company’s data security measures should be reasonable and appropriate in light of the sensitivity and amount of consumer information you have, the size and complexity of your business, and the availability and cost of tools to improve security and reduce vulnerabilities.
The FTC has been taking a 360° look at debt collection and credit reporting lately – workshops, reports, education, and law enforcement. On October 23, 2014, we're hosting a roundtable in Long Beach, California, with the Consumer Financial Protection Bureau to get perspectives on how these issues affect Latino consumers, especially those who have limited English proficiency.
At the FTC, we consider policy developments or proposed rule changes one rung at a time. An integral step in that process is the public comment period. If you have clients interested in two matters pending at the FTC, they have more time to put pen to paper.
Big Data is a big deal for businesses, consumers, academics, and policymakers. There's no doubt it opens the door to more powerful analytical techniques that can advance medical research, education, transportation, etc. But some have voiced concerns about whether it may be used to categorize consumers in ways that may affect them unfairly, or even unlawfully. That's the topic on the table at an FTC workshop, Big Data: A Tool for Inclusion or Exclusion?, and it's happening today,
Ahab hunts big fish.
Captain and whaling boat sink.
Sometimes you want to read all 209,117 words of Moby Dick. Other times a haiku will do. Sometimes you want an in-depth analysis of the FTC’s enforcement, rulemaking, research, education, and international efforts related to privacy and data security. Other times a summary will suffice.
It’s called CROA – the Credit Repair Organizations Act – and it was put in place to protect people battling their way back from financial adversity. Given the long history of questionable practices in this sector, CROA makes it illegal to charge people upfront before services are rendered. It also bans misleading statements to credit bureaus about consumers’ credit records. There’s been lots of talk about the harm posed by false negative information in credit reports. But in an interesting twist,
Sometimes good things come in threes, like Musketeers, Bronte sisters, and Stooges. (Shemp doesn’t count.) But the FTC’s complaint against Consumer Portfolio Services charges the company with three distinct sets of violations – unlawful auto loan servicing, illegal debt collection, and violations of the Fair Credit Reporting Act’s Furnisher Rule – all of which spelled triple trouble for consumers. But there’s relief on the way in the form of a
Type “big data” into a search engine and you’ll get more than 300 million results. Consider the amount of personal information actually in the hands of data brokers and add a string of zeroes to that. There are lots of valid purposes for using that data – verifying identity and detecting fraud, to name just two – but let’s face it: It’s an industry that operates primarily behind closed doors. To shed light on what’s going on, the FTC conducted an in-depth study o
It’s funny how kids sometimes mishear famous phrases – for example, “And lead us not into Penn Station” or the confused Elton John lyric “Hold me closer, Tony Danza.” We once heard first graders end the Pledge of Allegiance by saying “One nation, individual, with liberty and justice for all.” On second thought, maybe they were on to something. Analytics techniques are out there that categorize consumers and make predictions about individual behavior. For sure, it can offer insights to advance medical research, transportation, manufacturing, etc. But to what extent can big data
When the talk turns to Big Data, part of the conversation is about all the public information available about people's lives – and how companies market it to prospective employers, landlords, etc.
Most consumers know that creditors use information about them and their credit experiences – like the number and type of accounts they have, their bill paying history, and whether they pay their bills on time – to create a credit score, which helps predict how creditworthy they are.
When someone mentions the FTC, the EEOC, and the FCRA in the same sentence, it may sound like a ladle of alphabet soup. What’s really being served up is a new joint publication by the Federal Trade Commission and the Equal Employment Opportunity Commission that talks about how the Fair Credit Reporting Act and the mandate to comply with anti-discrimination laws intersect when employers use background checks in personnel decisions.
Whooping it up can be fun, but hooping it up – requiring consumers to jump through hoops to exercise their rights under the Fair Credit Report Act – is illegal. That’s one message businesses can take from the FTC’s $3.5 million settlement with TeleCheck.