Litigation Update: Transportation Firm Served With FCRA Class Action

Angela Preston

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Genwest/Gencom Transportation LLC has been served with a class action complaint for alleged violations of the Fair Credit Reporting Act (FCRA) and the California Investigative Consumer Reporting Agencies Act (ICRAA) as well as a discrimination claim. The US transportation, warehousing, and distribution firm is being targeted for now-familiar claims surrounding the company’s authorization and disclosure for an employment background check.

According to the complaint, Defendants required all applicants to sign an “Application Authorization and Consent for Release of Information” form during the application process. Defendants claim that the form violated the FCRA and the ICRAA by failing to provide the applicant with required disclosures, including but not limited to statements that:

(1) the applicant has the right to dispute information in the consumer report with the reporting agency; (2) the applicant may obtain a copy of the report after 60 days following submission of the authorization; (3) the applicant has the right to view the consumer report at the offices  of the consumer reporting agency with another individual who furnishes proper identification; (4) the applicant may receive a summary of the report over the telephone; and (5) a statement summarizing the provisions of Cal Civ. Code § 1786.22. Additionally, Defendants failed to place the disclosure statement in a clear and conspicuous manner on a separate document consisting solely of the disclosure, which violates both the FCRA and ICRAA.

Genwest has not yet replied to the claims. A copy of the complaint can be found here. The FCRA has special considerations for trucking firms–it allows alternate means of compliance, which may have an impact on this particular case.

Case Name: JEFFREY PARAMO vs. GENWEST TRANSPORTATION, LLC and GENCOM TRANSPORTATION, INC. Case No. 8:15-cv-00293, U.S. District Ct. for the Central District of California, Southern Division.

File Date: February 19, 2015

Cause of Action: Class Action, Fair Credit Reporting Act 15 USC 1681(b)(2)(a), 1681(d), 1681(b)(2)(B), 1681(m), Cal. Civ. Code 1786 et seq., Cal. Govt. Code 12940 et seq.

Bottom Line: FCRA class actions continue to spread at an alarming rate. Contact your legal counsel and your screening firm for best business practices.



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Angela Preston
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Angela Preston

Vice President of Compliance & General Counsel at EmployeeScreenIQ
Angela Preston has more than 20 years as a licensed attorney and over 10 years in the background screening area. She serves on the Board of Directors of the National Association of Professional Background Screeners (NAPBS), is a member of the NAPBS Background Screening Credentialing Council (BSCC), and is actively involved in the Society for Human Resource Management (SHRM) and ASIS International. Angela is also a member of the Ohio State and Columbus Bar Associations. Angela has direct oversight and management of compliance programs, and will provide guidance in complex legal matters including state and federal legislation, EEO law, client education, adjudication, pre/adverse action process, NAPBS Accreditation and client and vendor contract management.
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