Wells Fargo settles background check lawsuit for $12 Million
agreed to pay $12 million in order to settle a class action lawsuit brought against them for alleged violations under the Fair Credit Reporting Act (FCRA). Plaintiffs in the lawsuit claim that Wells Fargo Bank hired them, conducted a background check, and then used the results of the report to make an adverse employment decision to terminate their employment. It is alleged that the employer violated the FCRA due to the following:
- They failed to provide a clear and conspicuous written background check disclosure in a document that consists solely of the disclosure;
- They failed to obtain a valid authorization in writing to procure the background check; and
- They failed to provide a copy of the background check report and FCRA Summary of Rights, and at least 5 business days to respond before taking adverse action.
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