There has been a considerable amount of controversy surrounding how employers perform credit reports. This has led to mandates and state limitations. For example, according to Small Business online, “a small background or credit reporting error can have huge consequences”. In fact, the same article says; no matter how useful this source of information can be, there are still issues that businesses should consider. The following blog discusses a few state limit issues pertaining to credit reporting that your business should know.
How Can State Limits on Credit Reports Impact My the Potential to Hire New Employees
In order to understand the state limit for the use of credit reports, you must understand the entity partly responsible for those regulations. The Fair Credit Reporting Act is responsible for setting the state limits to protect consumers. They have set the rules for using these reports. Many states have set their own laws, but they must be consistent with the laws set forth by the Fair Credit Reporting Act. However, if you’re interested in learning how credit use laws are regulated by state, you can access the following link for more details. Thus, the FCRA not only mandates how long information can stay on your credit report, but also limits how that information can be used.
Why Many Business Prefer TruDiligence Services
With over 25 years of experience, TruDiligence has experience with the laws of each state pertaining to credit reports. In an effort to build long-term client relationships, we focus on 100 percent transparency. We will work directly with human resources to ensure you get the correct information to make an informed decision about a new job applicant or tenant. In fact, by hiring our team of professionals to perform your report services, your business decreases their chances of liability.
Learn More About Credit Reports In Employment Screening
Do you need to perform a credit or background check on a potential job applicant or tenant? You’re invited to contact us at TruDiligence for more details today. We help our clients make an informed decision when it’s important to their business!