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A man who applied to sell Raymond James financial products is suing the company over alleged violations in their background screening process.

The Background Investigation

Dustin Kampert is initiating a class action lawsuit against Raymond James Financial, Inc. He claims the company willfully violated the Fair Credit Reporting Act (FCRA).

Kampert started working at Hake Investment Group LLC in 2015. One of his job duties required him to sell Raymond James financial products. Before he could begin, Kampert had to register with Raymond James and undergo a background check.

A third-party prepared a background check on Kampert. The finished report contained criminal records. After seeing this, representatives from Raymond James reportedly denied Kampert's request to sell their products. This later caused Kampert to lose his job with Hake Investment Group.

The Lawsuit

According to Kampert, the criminal records that were included on his report had been expunged in 2008. If that is the case, then they should not have been available on any consumer report. Kampert also alleges that he did not receive a copy of his background report before an adverse action, denial of the ability to sell the financial products, occurred.

In a statement, Kampert wrote: "Raymond's willful disregard of its duties violates the FCRA as a matter of law, and it exacts serious consequences on job applicants and interstate commerce." He believes that Raymond James knew, or at least should have known their obligations under the FCRA. Therefore, he concluded, the company is guilty of a willful violation.

Kampert initiated the lawsuit against Raymond James, but hopes he won't be alone. He is trying to find others who may have had similar experiences. If he is successful, then the potential charges and fines against Raymond James could grow significantly.

FCRA Regulations

Based on Kampert's accusations, there are two FCRA violations in this scenario.

The FCRA says criminal records that have been sealed or expunged may not be included on any consumer report. If Kampert's criminal records were expunged at any point, then they should not have been displayed on his background check. Consumer reporting agencies are required to make efforts to ensure that only reportable data is included in a background check.

People make mistakes. If the company that compiled Kampert's background check inadvertently included data that should not have been available, then he should have had the opportunity to dispute the results of his report. FCRA law states that a consumer must have an opportunity to review their consumer report before any adverse action occurs.

Kampert should have received a copy of his report, a summary of his rights under the FCRA and a letter that explained an adverse action (not allowing him to see the financial products) was being considered. However, according to the lawsuit, none of that happened.

Keep Your Business Compliant

It is imperative for every business to be aware of and comply with FCRA regulations. We've seen a recent increase in lawsuits based on alleged FCRA violations. That makes it more important than ever to work with a background check provider that helps keep you compliant throughout the screening process.

All of the screening experts at Backgrounds Online are FCRA-certified. We compile background checks that contain reportable data you can use to make informed business decisions. If you have questions about background checks or the screening process, please contact us for assistance.