The Fair Credit Reporting Act (FCRA) governs credit reporting agencies and regulates them. Thus, ensuring the information they gather and distribute remains a fair and accurate summary of a consumer’s credit history. The FCRA passed in 1970 and was later amended by the Consumer Credit Reporting Reform Act of 1996. It regulates the credit reporting industry to ensure that consumer information remains accurate, timely, and complete. The FCRA protects consumers from inaccurate or misleading credit reports. To learn more about FCRA compliance, read on.
Compliance for the Employer
- Have an approved reason to carry out a background check in line with FCRA compliance.
- Before obtaining such a report, an employer must clearly and conspicuously reveal to the employee or applicant that they obtain the account for employment purposes.
- Before taking any adverse action based on information in a consumer report, the employer must also notify the applicant or employee. Then, provide at least five days for the applicant or employee to respond before taking such an action.
- Suppose adverse action occurs against an employee. In that case, you have to give them a copy of their report and summary of rights under FCRA and provide them with time to dispute any inaccuracies in the information on the report before making any final decisions about their employment status.
Learn More About FCRA Compliance
Everyone needs to stay up-to-date on the latest workplace regulations. Otherwise, it can have adverse consequences for businesses and individuals. Ensure that you work with a reputable background check company to help you out in the compliance process. TruDiligence is a company that is committed to providing relevant and quick information to make your FCRA compliance easier. Our mission is to promote the interest in public safety by providing fast, accurate, comprehensive background checks, investigative screens, and verification services. Contact us today for a trustworthy partner in compliance.