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Sterling Infosystems, Inc.

On November 22, 2019, the Consumer Financial Protection Bureau (Bureau) filed a proposed stipulated judgment with Sterling Infosystems, Inc. (Sterling), a privately-held Delaware corporation headquartered in New York. Sterling’s primary business is to prepare background screening reports on individual job applicants to assist employers in employment-making decisions. In its complaint, the Bureau alleged that Sterling violated the Fair Credit Reporting Act by (1) failing to employ reasonable procedures to ensure the maximum possible accuracy of the information about consumers it included in the consumer reports it prepared; (2) failing to maintain strict procedures to ensure that public record information about consumers that it included in consumer reports it prepared was complete and up to date or notify consumers, at the time that such information was reported, of the fact that public record information was being reported; and (3) reporting criminal history information and other adverse information about consumers outside of the reporting period allowed by the FCRA.

The stipulated final judgment and order was entered by the court on November 26, 2019 and requires Sterling to pay $6 million in monetary relief to affected consumers and a $2.5 million civil money penalty to the Bureau. The stipulated judgment also includes injunctive relief to prevent the claimed illegal conduct from recurring.

Related documents


Stipulated final judgment and order

Press release

Consumer Financial Protection Bureau Settles with Employment Background Screening Company