FCRA: Sanders v. Global Radar Acquistion, LLC

In Sanders v. Global Radar Acquistion, LLC, a Court in the Middle District of Florida denied a defendant’s motion to dismiss a Fair Credit Reporting Act class action case:

This is a fair credit reporting case relating to employment background checks that seeks to hold defendant Global HR Research liable for failing to obtain certain certifications required by the Fair Credit Reporting Act, 15 U.S.C. § 1601 et seq. (FCRA). The case has been filed as a putative nationwide class action. The issue presented here is whether plaintiffs have Article III standing to pursue such a claim.

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Here, the injuries alleged in the Amended Complaint are not mere “procedural” statutory violations; rather, they are precisely a kind of harm the FCRA aims to prevent. Namely, the distribution of consumer reports without the proper, required disclosures. In enacting the FCRA, Congress was expressly concerned about protecting consumer privacy, and therefore required consumer reporting agencies to comply with the strictures they set forth. The statute specifically states that a consumer reporting agency may furnish a consumer report “only if” it certifies that certain conditions have been met including disclosure to consumers and that the user will comply with certain requirements before taking adverse action against the consumer.

FCRA standing continues to develop under Spokeo, Inc. v. Robins.

For more information on FCRA cases, visit our practice section.