A company providing screening services to employers agreed to a $2.6 million penalty for Fair Credit Reporting Act violations, the U.S. Justice Department said.
In a complaint filed Wednesday, the federal government alleged HireRight Solutions Inc., based in Tulsa, Okla., violated the Fair Credit Reporting Act by not to comply with the act's provisions that ensure the accuracy of background reports about potential employees, the Justice Department said in a release.
HireRight combined public information into profiles that are provided to employers who are hiring, the complaint said.
The complaint alleged poor quality control led to erroneous and duplicate information being included in HireRight's reports and that the screener did not give consumers timely access to the information in their own files nor appropriately conduct investigations of disputed items when asked.
Along with the $2.6 million civil penalty in the proposed settlement, HireRight agreed to injunctions against future FCRA and Federal Trade Commission Act violations. The document also requires HireRight to maintain reasonable procedures to ensure the accuracy of reports and provide consumers information in their files when requested.
"Inaccurate consumer reports can keep qualified applicants from finding work and keep employers from finding good employees," said Stuart Delery, acting assistant attorney general for the department's Civil Division. "In this age of increased collection and distribution of consumer information, aggressive enforcement of the FCRA ensures that these reports contain facts, not mistakes."