Summary:
Derrick Perez Scott was denied employment by Full House Marketing after it obtained a credit report which inaccurately included the criminal convictions of Derrick Lee Scott. Mr. Scott subsequently brought suit against Full House Marketing under the Fair Credit Reporting Act, asserting that it had failed to provide him with a copy of that credit report before declining to hire him. In a lengthy 57-page decision, full of detailed findings of fact and multiple evidentiary rulings, the district court, while FCRA requires that employers must provide a job applicant consumer with a copy of their consumer report and a description of their rights before taking adverse action based on that report, denied the competing motions for summary judgment brought by both Mr. Scott and Full House Marketing, finding that conflicting testimony left genuine issues of material fact for the jury.
Commentary:
The jury eventually reached a verdict (attached) finding that while the provider of the inaccurate credit report, Resolve Partners, L.L.C., had violated 15 U.S.C. §1681e(b) by failing to "follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates" and awarded Mr. Scott $2,500 in compensatory damages, it found that Full House Marketing had not violated 15 U.S.C. §1681b(b)(3)(A) by failing to provide a copy of the credit report.
This case does also present the unfortunate circumstance of attorneys for opposing sides, all of whom have, at least until recently, been members of the consumer bar, alleging violations of Rule 11 and (unsuccessfully) seeking sanctions against their colleagues.
Beyond any implications for this case for consumer rights, this case does serve as a warning for all employers (which most of us are) that use of credit reports, while perhaps valuable to evaluate potential employees, does under FCRA oblige employers to provide opportunities to review those reports before the employer makes adverse decisions.
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