Ninth Circuit Rejects “Novel” FCRA Standalone Theory

The Ninth Circuit recently rejected a former employee’s argument that his employer violated the Fair Credit Reporting Act (FCRA) when it provided the consumer report disclosure with other application materials. The plaintiff in Luna v. Hansen & Adkins Auto Transport, Inc. brought the class-action lawsuit, claiming that his former employer 1. Provided the disclosure simultaneously with other application materials and 2. Failed to place the FCRA authorization on a standalone document. The Ninth Circuit held that the FCRA’s standalone requirement does not prohibit the presentation of the disclosure together with other application material and was unconvinced with the plaintiff’s argument that the disclosure form was not “clear and conspicuous” because it was presented along with the authorization form. In addition, the Court explained that the FCRA simply says the consumer authorization must be “in writing,” deeming the employer’s authorization sufficient.

 

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Posted Under: Legal Issues

Post By Ken Shafton (487 Posts)