Sterling Infosystems, Inc. Accused of FCRA Violations

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Sterling Infosystems, Inc. is facing a proposed class action wherein a man claims the consumer reporting agency reinserts into individuals’ background reports previously disputed and deleted information without adhering to requirements under the Fair Credit Reporting Act (FCRA).

According to the lawsuit, the FCRA mandates that consumer reporting agencies, among other criteria:

• Maintain procedures to prevent the reappearance of deleted information in a consumer report after a dispute has been resolved;
• Obtain certification from the report furnisher that any reinstated information is complete and accurate before it’s included in a report;
• Notify the consumer within five business days that previously disputed information has been added back into his or her report;
• Supply the business name and address of the furnisher of added information; and
• Inform the consumer of his or her right to add a statement to the report indicating that the information is disputed.

The lawsuit argues that the defendant “knowingly, intentionally, recklessly, and willfully” reinserted disputed criminal record information into the plaintiff's consumer report without complying with the aforementioned requirements. Per the plaintiff, the case argues that the defendant’s conduct caused him “lost employment opportunities, harm to reputation, and emotional distress, including frustration, stress, humiliation and embarrassment.”