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A Pennsylvania District Court heard a case that involved "accuracy" and "complete, up-to-date information" as it applies to the Fair Credit Reporting Act (FCRA).

After studying and interpreting the FCRA, the Court released their decision.

Accuracy and Complete and Up To Date Information in Background Checks

The U.S. District Court for the Eastern District of Pennsylvania heard the case of Kelly vs. Business Information Group. This was a lawsuit brought on by Michael Kelly, who alleged that he was denied employment due to incorrect information on his background check. He asserted that his report included data about his son and that this data is what caused him to be denied employment.

The lawsuit claimed that since the report included information about another person, it was not complete and up to date. Therefore, it concluded, the reason Kelly was denied employment was a violation of FCRA law.

The Court's Decision

The Court ruled against Kelly and stated that there is a difference between data being up to date and accurate. According to the Court's decision, the lawsuit was invalid because it claimed the report was not up to date when the data within the report was current. Nothing in the lawsuit questioned the accuracy of Kelly's report.

In their official statement, the Court noted the section of the FCRA that was most relevant requires "that the consumer have been the subject of a report that was not 'complete and up to date' and that 'completeness' refers not to accuracy nor to inclusion of identifying information as to the consumer, but rather the current public record status of the item that is attributed to the consumer."

Kelly's attorneys expect him to request an appeal. They feel the Court's decision could be overturned, but for now their ruling sets the precedent.

Interpreting the FCRA

To reach a decision in this case, the PA based Court had to interpret multiple sections of the FCRA. There are sections that cover the need for "maximum possible accuracy" in background check data and others that mandate the need for data to be "complete and up to date."

Specifically, the primary sections the Court considered were 1681k(a), which discusses the need for current information, and 1681e(b), which covers accuracy. An attorney who worked on the case stated: "Claims under Sections 1681k and 1681e(b) are different, which can have different challenges when trying to certify a class action under each section."

Current and Accurate Data is Essential for Background Checks

When a Consumer Reporting Agency prepares a background check, it is critical for them to be as thorough and precise as possible. This includes taking reasonable steps to ensure the data in every report is current and correct.

At Backgrounds Online, we have numerous policies in place to make sure the data we provide meets FCRA requirements. When our customers run background checks to determine whether or not to hire someone, it is crucial that they receive the most reliable information possible. We work diligently to build trustworthy, compliant reports that can legally be used to make informed hiring decisions.

If you have questions about compliance or screening new and existing employees, please contact us for assistance.