New ruling on the FCRA
by Jason Morris
The United States Supreme Court handed down a ruling today supporting two insurance companies on claims of a violation of the Fair Credit Reporting Act (FCRA).
The law requires insurance companies and
other businesses to notify customers who are charged more because
of their credit ratings.
In a unanimous decision, the justices said
Geico General Insurance Co. did not violate the law and that Safeco
might have, but did not do so recklessly.
The insurance industry said a decision
against it could have subjected companies to billions of dollars in
punitive damages for failing to notify customers.
This ruling has little or no impact on the background check and employment screening industry however there will be upcoming discussions on various definitions of terms. Look for related news in upcoming issues of our newsletter, The Verifier.
Subscribe to our podcast!