The Salvation Army $1,875,250 Settlement for FCRA Violations

The Salvation Army has agreed to pay $1,875,250 to settle a class action lawsuit for alleged violations of the Fair Credit Reporting Act (FCRA). This settlement affects individuals who applied for employment with The Salvation Army between November 2, 2018, and May 17, 2021, and had background checks performed without proper disclosures and authorization.

Who Benefits?: Individuals who applied for employment with The Salvation Army between November 2, 2018, and May 17, 2021, and had background checks performed.

How much can I get?: Eligible individuals can receive a $95 voucher redeemable at The Salvation Army thrift stores.

Important Dates

• Fairness Hearing: August 6, 2024
• Deadline to File a Claim: June 15, 2024

Can I Claim an Award?

To be eligible for the settlement award, you must be a member of the class defined as individuals who had background checks performed in connection with an application for employment with The Salvation Army between November 2, 2018, and May 17, 2021. This class excludes those who signed a Mutual Arbitration Agreement with The Salvation Army.

The class action lawsuit alleges that The Salvation Army acquired consumer, investigative consumer, and/or consumer credit reports to conduct background checks on prospective, current, and former applicants for employment purposes without providing proper disclosures and obtaining proper authorization. Additionally, it is claimed that The Salvation Army failed to provide a proper Summary of Rights under the Fair Credit Reporting Act.

Who is Excluded?

Individuals who signed a Mutual Arbitration Agreement with The Salvation Army are excluded from the class.

What Awards Can Class Members Claim?

Each Verified Settlement Class Member will receive a voucher or coupon entitling them to purchase goods up to a maximum amount of $95 at a Salvation Army thrift store in several states, including California, Oregon, Washington, Alaska, Hawaii, Idaho, Montana, Wyoming, Utah, Colorado, New Mexico, Nevada, or Arizona.

To receive the voucher, class members need to verify their identity by visiting www.parkerfcrasettlement.com and entering their name and the last four digits of their social security number. The voucher will not have an expiration date.

Background Checks and Consumer Reports

The settlement pertains to background checks performed by The Salvation Army on prospective, current, and former applicants for employment purposes.

• Consumer reports
• Investigative consumer reports
• Consumer credit reports

Is Proof Required to Claim the Reward?

Yes, proof is required to claim the reward. Class members must verify their identity by providing their name and the last four digits of their social security number at www.parkerfcrasettlement.com.

How to Claim Your Award

To claim your award, visit www.parkerfcrasettlement.com and enter your name and the last four digits of your social security number. This will verify your identity and ensure you receive your $95 voucher.

It is also advisable to confirm your current mailing address with the Settlement Administrator to ensure you receive your Individual Coupon.

$1,875,250 Settlement Fund

The total settlement amount is $1,875,250. This amount includes the estimated benefit for approximately 19,550 Settlement Class Members, Class Counsel’s fees and costs, the Service Payment to the Class Representative, and Settlement Administration Costs.

The settlement amount was calculated based on the approximate cash value of the settlement, which is $977,499. Each class member would receive approximately $50 based on this calculation. The settlement also includes $325,833.00 for attorneys’ fees, up to $18,000 in litigation costs, a $5,000 Service Payment to the Class Representative, and up to $50,000 in Settlement Administration Costs.

Why Is There a Class Action Settlement?

The settlement was reached to avoid the risk and expense of further litigation. The plaintiff and her attorneys believe the settlement is fair, adequate, and in the best interest of the class members given the outcome of their investigation, the consumption of time and resources required in connection with further litigation, and the uncertainty in the law governing some of the claims presented.

The Salvation Army disputes the plaintiff’s claims and asserts that it has complied with all of its legal obligations towards applicants and its employees. However, it concluded that further litigation would be protracted, expensive, and would divert resources and management and employee time.

The next steps include the final approval of the settlement by the Court, which will be determined at the Fairness Hearing scheduled for August 6, 2024.

For more information, please visit www.parkerfcrasettlement.com, where you will find copies of the Settlement Agreement, Preliminary Approval Order, and other relevant documents. If you still have further questions, they should be directed to the Settlement Administrator at 866-294-8988 or to Class Counsel at the addresses listed in the Notice.