Complying With the Fair Credit Reporting Act in Background Screenings
Employee background checks are not just limited to a criminal background check. There are other background reports that employers need to make a conscious decision. Just because the prospective candidate has not run afoul of the law does not mean they will be a quality employee. There are other available background screening reports that can highlight any potential red flags. Consumer reports are often used to evaluate candidacy. If the applicant has a poor credit score, for example, that can give any employer concern. If the candidate has difficulty controlling their own personal finances, they may be untrustworthy with the company’s finances, reports, etc. When running a consumer report on the aspiring employee, compliance with the Fair Credit Reporting Act is a must.
The Fair Credit Reporting Act (FCRA) was passed in 1970. The act dictates how credit reports are obtained. Overseeing and enforcing compliance are two agencies, the Federal Trade Commission and the Consumer Financial Protection Bureau. In addition to employment screening, information is also used for loan eligibility and insurance sales. Bill Payment history, loans and current debts are standard in these reports. The FCRA ensures that the consumers also have access to their reports.
Employers should make all efforts to ensure compliance with the FCRA. Before even starting the report, employers should inform the applicant of the process. This must be in written form and as a stand-alone document. It cannot be included in the application. You must also receive written permission from the applicant to compile the report. After you have received the results, it is time for evaluation.
If you find something alarming on the report, you may decide against hiring them. In this case, you are required to give them a copy with a summary of their rights. The background screening company you use should supply you with that summary. Finally, upon completion, the consumer report is destroyed. Burning and shredding are some of the most reliable uses of disposal.
Learn More About the Fair Credit Reporting Act
TruDiligence is fully compliant with all FCRA regulations. Thus, we will conduct thorough and informative background screenings with the utmost sensitivity. Let TruDiligence help you find the perfect candidate.
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