A class action settlement has been brought against First Advantage claiming that it ran background checks without prior authorization. The organization has agreed to resolve claims of the settlement which is going to benefit individuals whose background report was provided to their prospective employer by First Advantage without prior authorization. First Advantage is a background check company that offers services to employers for a seamless hiring process. Two class-action lawsuits were filed against First Advantage claiming that the company disobeyed federal law while conducting background checks on its consumers. The plaintiffs argue that First Advantage didn’t get prior authorization from consumers as per the requirements of the Fair Credit Reporting Act (FCRA).
FCRA renders protection to consumers by safeguarding all information collected and released by different credit reporting bureaus. As per FCRA, it is mandatory to offer a clear and conspicuous disclosure whenever a company requests a background check on an individual. This informs consumers adequately about the usage of their sensitive information. It is required under the law to get written authorization from consumers before running such reports and First Advantage violated the same. It didn’t offer a conspicuous disclosure and failed to attain the written authorization of consumers. Though First Advantage doesn’t agree to any wrongdoing, it has decided to resolve the claims of plaintiffs with a class action settlement.
Various benefits are offered by the settlement including free disclosures and discounts. Class Members are eligible to get a discount of $15 on Instant Check and an incremental discount of $15 on Resume Check up to a maximum discount of $30. First Advantage offers both Resume Check and Instant Check which are consumer background check products. Class Members are eligible to get nine free background file disclosure under the settlement over three years. Under the terms of the consumer protection laws, Class Members will receive one free file disclosure yearly over and above the additional nine free disclosures offered under the terms of the settlement.
First Advantage will make necessary changes to their terms and policies for ensuring prior authorization of consumers is attained before their potential employers run background checks. Class Members can opt-out of or object to the First Advantage settlement within 60 days of the date postmarked on the initial settlement disclosures.
Eligibility for Making Claim: Individuals whose background reports were provided by First Advantage to a prospective employer between 17th August 2012 and 20th November 2020 without prior authorization are eligible to avail of the settlement benefits.
Proof Of Purchase: A notice shall be sent to employees if the records of First Advantage indicate them to be a class member.
Potential Claim Amount: Nine free disclosures and discounts worth $30.
Settlement Website: FAdvSettlement.com
Claim Form: No claim form is required.
Deadline For Redemption: The last date to redeem the discounts is 7th February 2024 and the deadline for redeeming the disclosures is 7th February 2025.
Final Hearing Date: 12/08/2021
