Consumer Reporting Agencies Must Comply With The Fair Credit Reporting Act
Every company that screens new employees must abide by a strict set of rules, but how do you know if your business is fully compliant with the Fair Credit Reporting Act?
The complex set of federal regulations, enacted in 1970 and amended several times since, dictate how an applicant’s personal information is used by employers.
For example, a consumer-reporting agency may not provide a job candidate’s background information to a potential employer unless they are first provided with written permission to request the report. Some states, most recently California, are even banning decision-makers from using sensitive credit information in making hiring moves.
If you oversee an up-and-coming company that continues to hire at a feverish pace, having a qualified background-screening firm like Lakewood, Colo.-based TruDiligence in your back pocket is key to making sure the rules are being properly followed.
Employers that have found themselves stuck with civil and punitive penalties as a result of FCRA non-compliance know the importance of sticking to federal guidelines.
The majority of employers don’t realize that FCRA compliance involves several aspects of applicant background screening. Federal Trade Commission investigators are always looking for those who might skirt regulations. The onus is on the employer to know the guidelines.
Letting a Better Business Bureau-backed company worry about the details can free up HR managers to tackle more pressing and, likely, less confusing tasks. Hiring managers who are allowed to focus on the applicant’s intangible qualities during an interview are better off. They can also focus on whether the applicant fits the job description, instead of lying awake at night concerned about whether the FTC is launching an investigation into hiring practices.
TruDiligence not only complies with the FCRA, it provides verification services for professional credentials, educational background and criminal history. Hiring specialists can rest confidently knowing that the behind-the-scenes scanning of job candidates is taking place. It’s the best way to protect the company and its assets.
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