FCRA and Background Checks – What You Need to Know

What’s the Fair Credit Reporting Act (FCRA) got to do with background checks? The FCRA is a federal law requiring background screening providers to meet specific requirements before providing you with an employment report. According to the FCRA, you can’t use criminal history information when making decisions about employment, insurance, and other things without taking certain precautions to be sure the information you are using is accurate. You must follow specific rules when conducting background checks on potential employees, applicants, students, and customers.

The Information Collectors 

The FCRA regulates how information collectors collect, use, disclose, or dispose of personal information. It also outlines the requirements for notifying individuals about these practices. In general, data collectors may only contact an individual if they have consent from that person. Data collectors are required to provide a notice of purposes that includes a description of what type of information will be collected (including any sensitive financial information), how it will be used and disclosed, an opt-out option where one exists, and a list of third parties with whom it is likely that the data collector will share such data. Collection notices must include a copy of the statement. They should be easily accessible on the website of the information collector and, when applicable, have written messages delivered in paper form.

Benefits of Complying With the FCRA for Background Checks

You must observe the FCRA for background checks. Compliance with this law has many benefits for your business organization, including:

• Gain access to a more excellent pool of qualified candidates
• Help protect against negligent hiring lawsuits
• Avoid discrimination charges
• Understand the risks involved in not complying with FCRA laws

How to Comply

It is critical to comply with the FCRA in your business organization. Under FCRA, it is against the law to use any information as a basis for denying an application for credit or insurance that was obtained through a background check without your written consent. It also requires you to notify rejected applicants turned down because of a report in their background check. To ensure compliance with FCRA and avoid turning people away from applying for a job or credit due to background checks, ask before conducting a background check and get explicit consent from the applicant.

Learn More About the FCRA and Background Checks

When in need of a background check, the best provider for your needs is essential. There are numerous providers in the industry, but TruDiligence is nationally certified by the Professional Background Screening Association and offers a superior overall user experience. In addition, all our staff members hold advanced certification in the FCRA, which is the regulatory bible for our industry. Thus each front-line support representative is equipped to offer the highest level of support. Our testimonials speak clearly to our excelling in this area. It is truly where we shine. Contact us today to book an appointment.