CFPB Strikes $8.5M Deal Over Inaccurate Background Checks

By Jack Queen (November 22, 2019, 9:04 PM EST) -- A background check company agreed Friday to pay a total of $8.5 million to settle the U.S. Consumer Financial Protection Bureau's claims that it used imprecise methods to screen criminal records of job seekers and applied "high risk indicators" to profiles based on unverified third-party data.

Sterling Infosystems Inc. will pay a civil penalty of $2.5 million to the CFPB along with $6 million to compensate more than 7,000 consumers who were subject to inaccurate or misleading reports, according to a proposed settlement entered in New York federal court. The company neither admits nor denies the CFPB's allegations.

Sterling allegedly violated...

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