Employer settles with a rejected applicant who allegedly failed a background check. Employer failed to disclose the source of the derogatory information, in violation of the Fair Credit Reporting Act, 15 U.S. Code §1681. Cook v. U. S. F. I, #01-CVS-8171, 45 (9) ATLA L. Rptr. (Unpub. N.C. Super. Ct., Guilford Co. 2002). {N/R}
     Federal court in Chicago holds that a law firm that investigates employee misconduct is not credit reporting agency, and that an employee under investigation for misconduct is not entitled to receive a copy of the report. Hartman v. Lisle Park Dist., #01C1904, 158 F.Supp.2d 869, 2001 U.S. Dist. Lexis 12414 (N.D. Ill.). [2001 FP 134-5]
     Federal courts in Alabama and New York have rejected the FTC’s Vail Opinion (holding that outside law firms that assist employers in employment or disciplinary matters are “Consumer Reporting Agencies”): Johnson v. Federal Express, 147 F.Supp.2d 1268 at 1273-74, 2001 U.S. Dist. Lexis 8558 (M.D. Ala. 2001) and Robinson v. Time Warner, 187 F.R.D. 144 at 148 n.2, 1999 U.S. Dist. Lexis 14304 (S.D.N.Y. 1999). {N/R}
     FTC issues an Advisory Opinion that an employee's consent to the procurement of a consumer report [as defined in §604(b)(2)(A)(ii)] can be routinely obtained at the start of employment, thereby relieving the employer of the awkward prospect of having to ask a suspected wrongdoer for permission to allow a third party to provide an investigative (or other) consumer report to the employer. FTC Adv. Opin. to Susan R. Meisinger (31 Aug. 1999), www.ftc.gov/os/statutes/fcra/meisinger.htm {N/R}
     Federal agency Advisory Opinion holds that outside law firms that assist employers in employment or disciplinary matters are “Consumer Reporting Agencies” and an unedited copy of all reports must be furnished the employee. FTC Adv. Opin. to Judi A. Vail (5 Apr. 1999). Full text: www.ftc.gov/os/statutes/fcra/vail.htm [1999 FP 83]
     Note: The FCRA defines a consumer report as information prepared by a consumer reporting agency bearing on “credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living” … “for the purpose of serving as a factor in establishing the consumer's eligibility for ... employment.” 15 U.S. Code §1681a(d)(1).