The Federal Trade Commission (FTC) – a United States government agency that works to protect American consumers – has announced in a notice in the Federal Register that the adjustments on civil penalties amount for the Fair Credit Reporting Act (FCRA) have increased from $4,705 to $4,857. The adjusted amount took effect on January 10, 2024.
The notice titled “Adjustments to Civil Penalty Amounts” explains that the Federal Civil Penalties Inflation Adjustment Act Improvements Act (FCPIAA) of 2015 directs agencies to adjust the civil penalty maximums under their jurisdiction for inflation every January. Accordingly, the FTC issues annual adjustments to the maximum civil penalty amounts under its jurisdiction.
As directed by the FCPIAA, the FTC is issuing adjustments to increase the maximum civil penalty amount for the FCRA to address inflation since its prior 2023 adjustment. The notice reads as follows: Section 621(a)(2) of the Fair Credit Reporting Act, 15 U.S.C. 1681s(a)(2) (knowing violations of the Fair Credit Reporting Act)—Increase from $4,705 to $4,857.
Enacted by the U.S. Congress in 1970, the FCRA 15 U.S.C. § 1681 protects information collected in the files of consumer reporting agencies (CRAs). Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the FCRA. Furnishers who provide information to CRAs also have legal obligations under the FCRA.
ClearStar is a leading global Human Resources technology company that specializes in background checks, drug testing, and occupational health screening. ClearStar is a CRA that offers FCRA-compliant workforce screening solutions to help employers make informed hiring decisions while maintaining legal compliance. To learn more, contact ClearStar.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), identity theft, privacy, social media screening, and workplace violence.
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