In this day and age, doing background checks has evolved into a common practice for many different types of businesses, particularly during the personnel selection process. In the process of supporting companies in confirming the credentials of prospective workers, First Advantage, which is one of the major suppliers of background check services, plays a key role. Nevertheless,
just like any other large-scale business, it has been subjected to examination and has been challenged in the legal system. Recently, a big class action case that included First Advantage was resolved, which has attracted the curiosity of a great number of customers as well as employers.
This article provides an in-depth analysis of the contents of the First Advantage background checks class action settlement, including its consequences, the best bargains that are now available, advice for people who have been impacted, a fact check on common misunderstandings, and prospective changes in the future.
First Advantage Background Checks Class Action Settlement 2024
A class action lawsuit settlement was reached between First Advantage and the plaintiffs to satisfy allegations that the company violated the Fair Credit Reporting Act (FCRA) by conducting background checks without first obtaining consent.
Individuals who had a background check sent to a potential employer by First Advantage between August 17, 2012, and November 20, 2020, without prior permission are eligible to receive rewards from the settlement.
The firm known as First Advantage is a background check organization that specializes in offering services to companies throughout the process of employing new employees.
According to the allegations made in two class action lawsuits filed against First Advantage, the corporation consistently violated federal law while conducting background checks on members of the public. As required by the Fair Credit Reporting Act (FCRA), the background check business did not get prior consent from customers, as stated by the plaintiffs.
The Fair Credit Reporting Act (FCRA) is a consumer protection agency that safeguards information that is gathered and disclosed by credit reporting agencies. The Fair Credit Reporting Act (FCRA) mandates that businesses must provide “a clear and conspicuous disclosure” that “consists solely of the disclosure” whenever they request or conduct a background check on a person. This is done to ensure that customers are sufficiently informed about how their information will be used. In addition, the legislation mandates that persons must provide written authority before the execution of such reports.
According to the allegations, First Advantage violated the Fair Credit Reporting Act (FCRA) by failing to obtain written consent and failing to provide customers with a clear and conspicuous disclosure of the background check information.
However, First Advantage has decided to address the claims via a class action settlement, even though it has not committed any wrongdoing.
The settlement of the case over the first Advantage background checks offers several advantages, such as free disclosures and savings.
For a total of thirty dollars in savings, members of the class are entitled to get a fifteen-dollar discount on Instant Check and another fifteen-dollar discount on Resume Check. Instant Check and Resume Check are both examples of consumer background check solutions that are managed and offered by First Advantage.
By the terms of the settlement, Class Members are eligible to get nine free disclosures of their background files over three years. In addition to the nine free disclosures that are guaranteed under the FCRA settlement, consumer protection laws guarantee that Class Members are entitled to receive one free file disclosure each year.
First Advantage has reached an agreement to modify its terms and conditions to guarantee that customers would be required to submit prior permission before prospective employers do background checks on them.
For Class Members to exercise their right to object to or opt out of the settlement of the First Advantage background checks litigation, they are required to do so within sixty days of the date that was postmarked on the first settlement disclosures.
On December 8, 2021, the FCRA settlement for First Advantage was given its final approval via the approval process.
To redeem the discounts that were offered by the settlement, Class Members have until February 7, 2024, and they have until February 7, 2025, to redeem the nine free file disclosures.
$1000 Single Settlement Payment
Credit One Bank Class Action Settlement
Overview of First Advantage Background Checks Class Action Settlement
| Article Title | First Advantage background checks class action settlement |
| Company | Fair Credit Reporting Act (FCRA) |
| Post type | Finance |
What Affected Individuals Can Expect
Compensation in the Form of Money
Individuals who were impacted by erroneous background checks carried out by First Advantage are entitled to receive monetary compensation as part of the settlement agreement. The precise amount is subject to change based on the extent of the damage that was caused, the type of errors that were made, and the number of claims that were submitted.
The amount of compensation that might be awarded to qualified persons could range anywhere from a few hundred to several thousand dollars on average. This is something that is meant to compensate for the emotional and financial suffering that was brought on by the false reporting.
Free Checks of the Background:
First Advantage has agreed to provide affected individuals with free background checks for a predetermined amount of time, in addition to providing monetary compensation for the affected individuals. Individuals can check their information and guarantee that their records are correct going forward as a result of this. This option is especially helpful for those who are actively looking for work since it allows them to resolve any possible problems before they become a problem.
Support for Monitoring Credit Reports
The settlement also includes the provision of free credit monitoring services for a limited period, which is another important component. Because background checks often incorporate credit reports, an individual’s credit score might be negatively impacted by erroneous report information. Impacted persons will be able to keep track of any changes that occur to their credit reports and swiftly correct any anomalies with the assistance of free credit monitoring services for impacted individuals.
Considerations for Those Who Are Affected
Methods for Making a Claim
If you believe that you were impacted by the errors that were found in the background checks conducted by First Advantage, you must submit a claim as soon as possible. The website for the settlement will include comprehensive instructions on how to submit a claim, including the paperwork that is needed. You need to make sure that you collect all of the pertinent information, such as copies of the inaccurate background check reports, correspondence with potential employers, and any other evidence that supports your claim.
Conducting a Review of Your Background Check
It is a good idea to acquire a copy of your background check from First Advantage or any other supplier of background checks, even if the situation has not directly impacted you. This allows you to examine the information and make certain that it is accurate. If you discover any inconsistencies, you can take measures to rectify them before they become possible problems.
Maintaining a Close Eye on Credit Reports
Because of the possible influence that inaccurate information from a background check might have on your credit report, it is recommended that you examine your credit report frequently. Through the website AnnualCreditReport.com,
you can acquire a free copy of your credit report from each of the main credit agencies once per year. In addition, you should think about signing up for a credit monitoring service, particularly if you have been impacted by the settlement, so that you can monitor any changes and respond to them as soon as they occur.
Final Thoughts
It is a remarkable milestone that has far-reaching ramifications for both people and the background check business that the First Advantage background checks class action settlement was reached. While the settlement does give compensation and other advantages to people who were harmed, it also serves as a reminder of how important it is to conduct background checks that are accurate and dependable. For people,
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it is of the utmost importance to maintain vigilance in the monitoring of their information and to take preventative measures to address any false information that may be there. Furthermore, the settlement highlights the need for businesses to implement rigorous procedures to guarantee the accuracy of the information that they provide. Because of the continual monitoring and the possibility of legal problems that are expected to arise as the sector continues to develop, this is an essential topic to keep an eye on in the future.
Riya Claire is the Editor-in-Chief of the East Hampton Chamber Portal. She holds a degree in Mass Communication, an MBA in Finance, and a diploma in HR, making her a versatile professional for an online portal