Technical FCRA Violation May Give Right To Sue According To Eastern District of Missouri Court

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Technical FCRA Violation May Give Right To Sue According To Eastern District of Missouri Court

The Eastern District of Missouri has decided in the case of Hood v. Action Logistix, LLC that a solely procedural violation may be enough to give standing to sue minus a concrete injury. 

In this case, the plaintiff had applied for employment with Action Logistix. Following which the company extended the plaintiff a conditional offer of employment before running a background check. This background check came back with information that caused Action Logistix to withdraw its offer. However, they did not offer the defendant the FCRA Summary of Rights and a copy of the report, which is required by the FCRA before taking adverse action.

The defendant then filed a lawsuit against Action Logistix on the basis of a violation of the FCRA procedure without disputing either the report’s material or that following the FCRA procedure would change the outcome. Action Logistix moved to dismiss on the basis that the plaintiff had suffered no concrete injury. However, the court decided that a procedural violation of the FCRA could potentially rise to the level of a concrete injury.

Case law like this could give rise to many more lawsuits on the basis of technical violations of the FCRA. For this reason, pre-employment screening should always be performed by a provider you can trust to prevent costly mistakes.