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NAPBS Update - Are Consumers Unhappy with CRAs?

What a great couple days in Arlington! If you didn’t have the opportunity to attend the NAPBS (National Association of Professional Background Screeners) last week, I highly recommend trying to make the Annual meeting in September (Scottsdale, AZ is lovely that time of year). The educational sessions were well-presented, and the feed-back I heard was very positive.

If I had to summarize what I learned, it would come down to two “C’s” – Compliance and Consumer.

In 2011-2012 the number of FCRA-related Class Action lawsuits filed increased by 200% from the previous years. 2012-to date, they have jumped another 100%.  Why?

  1. Now, more than ever before there is dialogue between government groups about protecting the consumer (FTC, CFPB, EEOC, ACLU, etc) 
  2. Attorneys for the “plaintiff” are becoming more educated, and also working together (to the point of forming their own consortiums!)
  3. Media exposure = consumers becoming more educated about their rights

As an industry, what can we do to reduce our exposure? Simply put, we have to look at things from the consumer’s perspective. If we shift our focus to make the consumer our priority, the likelihood of ending up in litigation drops dramatically. We keep the consumer happy; they pretty much leave us alone. We upset the consumer, they come after us with a vengeance (urged and advised by legal counsel).

Stay tuned for the next Blog to find out about the top three Complaints Consumers have about CRAs …….

Nichole Disser, Strategic Account Manager



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