CALIFORNIANS ARE SPECIAL – Exceptional Protections Under California’s Background Check Error Laws
California distinguishes itself in the realm of personal information protection.
One prominent example of this is the Investigative Consumer Reporting Agencies Act (ICRAA). Unlike many states that depend solely on the federal Fair Credit Reporting Act (FCRA) to regulate background checks, California enhances its residents’ protections with the ICRAA, setting a higher standard for privacy and consumer rights.
What Is the ICRAA?
The ICRAA, codified under California Civil Code §1786, was enacted to offer stricter regulations than its federal counterpart, the FCRA. This law governs the collection, use, and dissemination of investigative consumer reports—commonly referred to as background checks. These reports are often used by employers, landlords, and other entities to assess an individual’s eligibility for employment, housing, or other services .
Key Protections Under ICRAA
ICRAA provides several unique protections that distinguish it from the FCRA. One of the most significant differences is how criminal records are handled. Under ICRAA, only criminal convictions can be reported, and even then, the information is limited to seven years from the date of disposition, release, or parole. This restriction applies regardless of the individual’s expected salary, making it more stringent than the FCRA, which allows reporting beyond seven years for salaries above $75,000 .
Another critical aspect of ICRAA is its broad definition of “investigative consumer reports.” Unlike the FCRA, which narrowly defines such reports, ICRAA considers any information obtained through “any means” as part of an investigative consumer report. This includes public records checks, which under the FCRA would be treated simply as consumer reports .
Common Violations of ICRAA
Despite its stringent requirements, violations of ICRAA are not uncommon. Employers and other users of investigative consumer reports often fall short in complying with the law, leading to serious consequences.
One of the most frequent violations involves the failure to provide a compliant consent disclosure before obtaining an investigative consumer report. According to ICRAA, the consent disclosure must include the name, address, and telephone number of the agency preparing the report. It must also contain a checkbox that allows the consumer to request a copy of the report. Missing any of these elements renders the disclosure non-compliant, making the procurement of the report a violation of ICRAA, even if the employee has signed it .
Another common violation is related to the formatting of the report itself. ICRAA mandates that a notice be included on the first page of the report, in at least 12-point boldface type, stating that the report does not guarantee the accuracy or truthfulness of the information, and that errors related to identity theft may inaccurately associate criminal activity with the subject of the report. Many reports fail to include this notice, or if they do, the font size is too small, or the notice is buried in the latter pages of the report .
Understanding the Overlap with CCRAA
ICRAA sometimes overlaps with the California Consumer Credit Reporting Agencies Act (CCRAA), which also governs background checks but is focused on credit reports. The California Supreme Court clarified that employers must comply with both ICRAA and CCRAA when conducting background checks, particularly when the checks involve information beyond simple credit history, such as character information.
The Court’s decision in Connor v. First Student, Inc. underscored the importance of complying with the stricter requirements of ICRAA whenever there is a possibility that the background check may include information beyond credit records. This ruling is crucial for employers as failure to comply with both ICRAA and CCRAA can result in legal action and significant penalties .
When ICRAA Protection Comes in Handy for California Consumers
ICRAA protections are crucial in several real-world scenarios where background checks play a pivotal role:
Employment Applications: Imagine you’re applying for a job as a driver with Lyft or Uber. These companies often conduct comprehensive background checks that may include criminal records, driving history, and other personal details. If they fail to comply with ICRAA by not providing you with the correct disclosures or mishandling your background information, you could be wrongfully denied employment. With ICRAA, you have the legal framework to challenge these violations and seek damages .
Housing Applications: If you’re applying for an apartment, the landlord might conduct a background check to assess your suitability as a tenant. ICRAA ensures that the information gathered about your character and lifestyle is accurate and that you are fully informed about the background check process. If errors in the report lead to a denial of housing, ICRAA provides a means to dispute those inaccuracies and hold the reporting agencies accountable .
Insurance Applications: Certain insurance providers may conduct background checks before issuing a policy. Under ICRAA, they must obtain your written consent and provide you with a copy of the report. If they fail to comply, you could be unjustly denied coverage, and ICRAA gives you the tools to challenge such decisions .
Why These Protections Matter
For Californians, the protections under ICRAA are not just legal formalities—they have real-world implications. Background checks are a common part of modern life, used by employers, landlords, and other decision-makers to assess individuals. Errors in these reports can lead to missed job opportunities, denied housing applications, and other significant consequences. By imposing strict requirements on the preparation and use of these reports, ICRAA ensures that Californians are treated fairly and that any mistakes are promptly corrected.
If you have been affected by a background check error, our California Background Check Error Attorneys at R23 Law are here to help.
With deep expertise in consumer protection laws, our team can guide you through the process of addressing these errors and holding those responsible accountable. Contact us today for a free consultation.
FAQ – ICRAA Questions Answered
FAQ – ICRAA Questions Answered
What is the difference between ICRAA and FCRA?
ICRAA, or the Investigative Consumer Reporting Agencies Act, is California’s state law that provides stricter regulations than the federal Fair Credit Reporting Act (FCRA). While both laws regulate how background checks (or investigative consumer reports) are conducted, ICRAA imposes more rigorous requirements on what information can be reported, particularly regarding criminal convictions. ICRAA also offers additional protections, such as requiring more detailed disclosures to consumers and limiting the scope of reportable information .
How do I know if my rights under ICRAA have been violated?
Common violations of ICRAA include failures in providing compliant consent disclosures, errors in the formatting of investigative reports, and improper reporting of outdated or incorrect information. If you believe that your background check was conducted improperly or contains errors, it may be a violation of ICRAA. Our California Background Check Error Attorneys at R23 Law can review your case and determine if your rights have been violated .
What can I do if there is an error in my background check?
If you discover an error in your background check, you should first notify the reporting agency and request a correction. However, if the error is not resolved or has caused you harm, you may be entitled to legal remedies under ICRAA. Contact R23 Law’s California Background Check Error Attorneys to discuss your options and how we can help you pursue compensation .
What kind of damages can I recover for an ICRAA violation?
Under ICRAA, you may be eligible to recover statutory damages of up to $10,000 per violation or actual damages, whichever is greater. Notably, you do not need to prove that you were harmed by the violation to bring a successful claim. Our attorneys can assist you in assessing the damages you may be entitled to and guide you through the legal process .
Why should I choose R23 Law for my ICRAA case?
R23 Law specializes in consumer protection cases, including those involving ICRAA violations. Our California Background Check Error Attorneys have extensive experience in holding companies accountable for background check errors, ensuring that your rights are protected, and helping you secure the compensation you deserve. We offer personalized legal services in multiple languages to better serve our diverse community, and we provide free consultations to help you understand your legal options.
Taking Action: Protect Your Rights
California’s ICRAA provides unique and robust protections for consumers against errors in investigative consumer reports. Whether you’re an employee, a tenant, or anyone subjected to a background check, knowing your rights under this law can make all the difference.
At R23 Law, our California Background Check Error Attorneys are ready to stand by your side to ensure those rights are enforced.
Contact us today to protect your rights and ensure that your background check is accurate and fair. We offer free consultations and provide legal assistance in multiple languages to better serve our community. Let us help you navigate California’s complex consumer protection laws and achieve the justice you deserve.
