By Katherine Webster  |  March 11, 2021

Category: Consumer News

A man hands a credit report across an office desk toward the camera - Quantum Global Technologies LLC

 

A California judge has approved a $175,000 class action settlement resolving claims that Quantum Global Technologies LLC’s employment applications violated federal law.

Anyone who applied with and/or were employed by Quantum Global Technologies LLC in the United States or were the subject of a consumer report that was procured by Quantum or caused to be procured by Quantum through third-party consumer reporting agency First Contact HR between Oct. 30, 2013, and Dec. 31, 2018, is included in the Class.

Individual settlement payments to Class Members will range between $20.70 and $560.65; the average payment is estimated to be $107.10.

Class Members who choose to participate in the settlement will not need to take any action in order to receive a payment.

Lead plaintiff Paniani Taafua’s class action lawsuit alleged Quantum Global Technologies LLC’s job applications included a liability waiver that violated the federal Fair Credit Reporting Act (FCRA).

Closeup of a man holding a tablet showing an online job application - Quantum Global Technologies LLC

Taafua claimed Quantum required all prospective employees to sign a form authorizing the company to obtain a consumer report to verify the applicant’s background and experience.

However, because that form contained a liability waiver in addition to a disclosure about the consumer report, Quantum allegedly violated a provision of the FCRA requiring the disclosure to be a standalone statement. This means the company also did not receive proper authorization for any of the reports it obtained using its standard form.

The Fair Credit Reporting Act is a federal law protecting consumer information, specifically the information reported to credit reporting bureaus such as Equifax, Experian and TransUnion.

The law sets standards for how consumers’ credit information is handled and reported, and violations can harm a person’s chances at getting a loan or low interest rate, or may even cost them a job.

The Court denied a previous $126,000 version of the settlement agreement because it “appeared to account for [Quantum’s] potential statute of limitations defense with respect to Mr. Taafua’s claims, at the expense of approximately half of the putative class members who have no such issue.” 

The Court also took issue with the fees requested by Taafua’s counsel and the service fee requested by Taafua himself in the previous settlement agreement.

Have you agreed to a prospective employer obtaining your credit report? Let us know in the comment section below.

The plaintiff is represented by Kelsey M. Szamet, Eric B. Kingsley, Kelsey M. Szamet, and Liane Katzenstein Ly of Kingsley and Kingsley APC; and Emil Davtyan of Davtyan Law Firm.

The Quantum Global Technologies LLC FCRA Class Action Lawsuit is Paniani Taafua, et al. v. Quantum Global Technologies LLC, Case No. Case 5:18-cv-06602-VKD, in the U.S. District Court for the Northern District of California, San Jose Division.

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One thought on Judge OKs $175K Quantum Global Technologies LLC Settlement Over Job Applicant Credit Report Form

  1. LISA HAWKINS says:

    Please add me

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