Background Check Compliance With the Fair Credit Reporting Act

The Fair Credit Reporting Act includes federal legislation passed in 1970. It protects consumers from incorrect information recorded on their credit reports. The FCRA also ensures the accurate recording of credit information, the collection, dissemination, and use of consumer information. Learn more about remaining FCRA compliant when conducting background checks.

Fair Credit Reporting Act Compliance for Employees

To screen potential or current employees under the FCRA:

• Permission in writing from the employee.
• Inform the employee of how their report will be used in making employment decisions.
• The employer cannot misuse the information collected.
• Provide a copy of the report to the employee if they do not get the job.
• Lastly, an employee must be given the opportunity to dispute information contained in the report.

Fair Credit Reporting Act Compliance for Tenants

To screen potential tenants under the Fair Credit Reporting Act:

• Permission in writing from the potential tenant.
• After collecting the report collected, dispose of it in a secure manner.
• Give the potential tenant notice if any adverse action occurs, such as refusing to rent to the tenant.
• The landlord cannot misuse the information collected.
• Lastly, the tenant receives a copy of the report if any adverse action occurs.

Learn More About Background Check Compliance Under the FCRA

Under the FCRA, a person has the right to access all reports requested in their name. Indeed, a company requesting a report for a potential employee or tenant must be cognizant of the law and be in full compliance with the FCRA. To be in compliance while requesting reports, it’s critical to choose the right background reporting agency. The background reporting agency must provide quick and reliable reports, dispose of any requested reports properly and also act in compliance with the FCRA at all times. Contact TruDiligence, a trusted source for background checks.