FCRA Litigation Surges 60%. What CRAs Need to Know
As reported by WebRecon, Fair Credit Reporting Act (FCRA) litigation continues to rise in 2026. FCRA-related litigation rose 4.6% in April from March. As compared to April 2025, litigation involving the FCRA was up 60.7% in April 2026. From January through April, there were 3,520 FCRA cases filed.
These increases in 2026 represent a continued year-over-year trend of FCRA-related filings growing at an incredibly high pace. Now, it’s important to note that not all FCRA case filings involve background checks used for employment or tenant-related purposes. Cases involving the three main credit bureaus and credit score/history related issues form a significant portion of the FCRA-related caseload.
With that said, background screening companies – formally referred to as consumer reporting agencies or CRAs – have certainly become a popular target for plaintiff’s firms, especially since the FCRA is structured in a way where there is no cap on statutory damages.
Section 607(b): The Accuracy Standard Driving Most Claims
As we covered in a prior blog, there are a few key FCRA provisions that drive litigation against CRAs. Perhaps the most common driver for these claims comes from allegations that a background screening company violated Section 607(b), which requires CRAs to maintain reasonable procedures to assure maximum possible accuracy. Typically, these claims arise once a CRA has reported criminal record information that allegedly does not belong to the person, is incomplete in some way, or represents the wrong disposition or offense level of the case.
These are by no means the only claims that may arise under Section 607(b), but serve as common examples. CRAs could also face Section 607(b) claims for alleged missteps related to other searches that appear on the consumer report, such as employment or education verifications, professional license information, or sanctions list information. While these generally are filed as single-plaintiff cases as opposed to class action lawsuits, the frequency with which plaintiff’s firms are pursuing these claims has steadily increased over the years.
Section 605(a): When Outdated Information Becomes a Liability
Lawsuits may also arise in relation to Section 605(a), which lists information that must be excluded from a consumer report. For instance, CRAs cannot report civil suits or records of arrest that predate the report by more than seven (7) years and cannot report any other adverse items of information, other than records of convictions, that predate the report by more than seven (7) years.
Section 611: Dispute Handling as Risk Management
CRAs may also face lawsuits over their handling of consumer disputes. Section 611 outlines the procedures CRAs must follow to reinvestigate disputed information. This blueprint is important for CRAs to understand and follow, although the FCRA’s language leaves some room for companies to determine how they will execute this important obligation. This is an important area for background screening companies to focus on as it provides a chance to connect with the consumer and potentially mitigate exposure (or damages) if a mistake was made in preparing the background report. Ideally, any personnel who interact with consumers are trained to treat these individuals with empathy and respect, with the understanding that most often people are not contacting the background screening company when everything went right with their background check.
What CRAs Should Do Now
The continued increase in FCRA litigation underscores the importance of proactive policies, reasonable procedures to govern accuracy and ongoing oversight of the data food chain. CRAs should consider investing in strong compliance frameworks and employee training to help reduce legal exposure and navigate the increasingly complex regulatory and litigation environment.
If your organization is navigating FCRA compliance challenges, Capwell Consulting Group’s expert team is available to help. Contact the team here.
About The Author
Kelly Uebel is a legal and compliance expert and authority in the employment and tenant background screening industry. Kelly brings more than 14 years of experience with the Fair Credit Reporting Act and its state analogues, fair chance laws, and negligent hiring issues to her background screening expert witness role with Capwell Consulting Group.
About Capwell Consulting Group
Capwell Consulting Group is a nationally recognized litigation support and risk mitigation consulting firm specializing in highly regulated industries. Our firm provides industry-leading guidance, research, reporting, and expert witness testimony for legal proceedings involving employment screening & negligent hiring, FCRA litigation, drug & alcohol testing, and medical device quality and regulatory compliance matters. With over three decades of industry experience, Capwell Consulting Group is a trusted advisor to employers, attorneys, and consumers around the globe.
The information published within is provided for educational purposes only. The information is not intended to or constitute legal advice; instead, all information, content, and materials are published for general informational purposes only and not considered the views of a particular expert or consultant of Capwell Consulting Group, LLC. © 2026 http://www.capwellconsulting.com