How to Conduct Background Checks That Are Compliant With the Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA) regulates access and use of an individual’s credit report. Since the law passed in 1970, Congress expanded its scope to apply to background check services and credit bureaus. Here is how a business can conduct a background check that remains compliant with the Fair Credit Reporting Act.

What Steps Do Employers Need to Take to Remain Compliant With FCRA?

Compliance with the Fair Credit Reporting Act centers around transparency with job seekers about a background check. Also, the information collected influences whether the candidate gets the position. Following FCRA regulations allows businesses to get the information they need about potential hires while also protecting job candidates’ legal rights.

First, employers need to notify the job candidate in writing that they will be performing a background check before or during the interview process. This needs to occur in a separate document, not mixed in with other paperwork. Then, the employer needs to get the candidate’s written permission to conduct a background check.

Once the background check results come in, the employer needs to share a copy of the report with the candidate and provide the candidate with the opportunity to correct any inaccuracies in the report. When sharing the results, the employer also needs to provide information about the candidate’s rights under the FCRA. If the employer decides to reject a candidate based on information uncovered by a background check, inform the candidate.

How Does TruDiligence Help Employers Remain Compliant With the Fair Credit Reporting Act?

Working with an experienced, accredited background check provider makes complying with FCRA easy. TruDiligence uses a streamlined process that allows candidates to easily receive all the required disclosures and to sign consent forms digitally. Contact us at TruDiligence to get accurate, efficient, and FCRA-compliant background screenings.