in Newswire Published on July 13, 2022

TruthFinder Hit with Class Action Over ‘Unlawful’ Background Checks

Mejia v. TruthFinder, LLC

Filed: July 12, 2022 ◆§ 3:22-cv-01010

A consumer claims in a class action lawsuit that he ultimately lost his job as the result of TruthFinder, LLC’s allegedly unlawful sale of his consumer report.

Defendant(s)

TruthFinder, LLC

Law(s)

Fair Credit Reporting Act

State(s)

California

A consumer claims in a proposed class action lawsuit that he ultimately lost his job as the result of TruthFinder, LLC’s allegedly unlawful sale of his consumer report.

The 21-page lawsuit alleges TruthFinder, who operates a people search website that contains a database of public records information about consumers, has run afoul of the Fair Credit Reporting Act (FCRA), which governs the sale and use of consumer reports.

The case more specifically charges that TruthFinder, who claims its “background checks” are not subject to the FCRA, has violated the federal statute by:

Refusing to provide copies of consumers’ files when requested, including all of the information provided about them, the source of the information and the end-users to whom the report was provided;
Providing consumer reports used for employment purposes without receiving valid certification from the employer that it has complied with the FCRA’s disclosure, authorization and notice requirements; and
Providing consumer reports containing public records information that is likely to have an adverse effect on a consumer’s ability to obtain employment but failing to notify the consumer that such information was being reported and to whom it was being reported.

The lawsuit alleges that although TruthFinder asserts that it is not a consumer reporting agency subject to the FCRA, the defendant “specifically markets itself as a company that provides information and services that are governed by the FCRA.”

In the plaintiff’s case, TruthFinder allegedly included “a trove of information” governed by the FCRA, including criminal history, address history and lists of people associated with the man, in the background check provided to his employer, the suit relays. Moreover, because TruthFinder provided information to the plaintiff’s employer, who then used it for employment purposes, the defendant consented to be governed by the FCRA, the case argues.

The plaintiff claims that the report provided by TruthFinder in June 2020 ultimately caused him to be fired from his job due to the criminal record information contained therein. According to the case, TruthFinder failed to provide the plaintiff with notice that it was furnishing a consumer report about him that contained information likely to have an adverse effect on his employment, and refused to provide the plaintiff with a copy of his file when he attempted to “get to the bottom of the issues” raised in his report.

As a result of TruthFinder’s FCRA violations, the plaintiff was left “jobless and humiliated,” the lawsuit contends.

The plaintiff looks to represent the following three classes:

“All natural persons residing in the United States (including all territories and other political subdivisions of the United States) who requested their full file disclosure from Defendant Truthfinder on or after June 17, 2020, through the present.”

“All natural persons residing in the United States (including all territories and other political subdivisions of the United States) (a) who were the subject of the sale by Defendant Truthfinder of one or more criminal public records on or after June 17, 2020, (b) sold to a consumer reporting agency that resold the data to an end-user for an employment purpose, (c) or sold directly to an end user (other than the consumer) for an employment purpose, (d) to whom Defendant Truthfinder failed to obtain from its customers certifications of compliance with 15 U.S.C. §§ 1681b(b)(2) and (b)(3) before issuing a background check.”

“All natural persons residing in the United States (including all territories and other political subdivisions of the United States) (a) who were the subject of the sale by Defendant Truthfinder of one or more criminal public records after June 17, 2020, (b) sold to a consumer reporting agency that resold the data to an end-user for an employment purpose, (c) or sold directly to an end user (other than the consumer) for an employment purpose, (d) to whom Defendant Truthfinder did not place in the United States mail postage pre-paid, on the day it furnished the report, a written notice to the subject consumer that it was furnishing the report and containing the name of the person that was to receive the report.”

The lawsuit notes that TruthFinder has been sued at least two other times over alleged FCRA violations.

Get class action lawsuit news sent to your inbox – sign up for ClassAction.org’s newsletter here.

Case Spotlight

Hair Relaxer Lawsuits

Women who developed ovarian or uterine cancer after using hair relaxers such as Dark & Lovely and Motions may now have an opportunity to take legal action.

Read more here: Hair Relaxer Cancer Lawsuits

How Do I Join a Class Action Lawsuit?

Did you know there's usually nothing you need to do to join, sign up for, or add your name to new class action lawsuits when they're initially filed?

Read more here: How Do I Join a Class Action Lawsuit?