Innovative Enterprises Taking Heat for Allegedly Inaccurate Background Reports

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Plaintiffs from Georgia, Ohio, and California have put their names on a proposed class action complaint that alleges Innovative Enterprises, Inc., a credit reporting agency, sold inaccurate background checks to companies who, in turn, refused to hire proposed class members based on the contents of those reports. More specifically, the case claims Innovative Enterprises gave to prospective employers background reports that included dismissed criminal charges that predate the reports by more than seven years. 

Under the Fair Credit Reporting Act (FCRA), the federal statute allegedly violated by the defendant, certain aspects of an individual’s criminal history, such as arrests, dismissed charges and expungements, provided to employers for jobs that pay less than $75,000 per year must be excluded from background reports.

“Those reports may contain entries of criminal information that predate the report by more than seven years, but only criminal convictions,” the case reads.