Employer
Information
Fair Credit
Reporting Act (FCRA)
All employers utilizing screening services are Users of Consumer Credit
Reports are fall under direct regulation of the federal Fair Credit
Reporting Act ( FCRA
). Users of Consumer Reports are obligated and mandated to:
- Make a clear
and conspicuous written declaration to the applicant/consumer before
the report is obtained, in a document that consists solely of the
disclosure, that a Consumer Report may be obtained.
- Obtain written
permission to order the Consumer Report. The written authorization
must be a stand-alone form and cannot be incorporated with any other
documents, such as an employment application or employment agreement.
- Certify to ABS
that the above steps have been followed, that the information obtained
will not be used in violation of any federal or state equal opportunity
law or regulation and if adverse action is taken a copy of the consumer
report and summary or rights will be provided to the consumer/applicant.
- If the employer
takes adverse action based on information contained in a Consumer
Report, they must
- Notify the
applicant/consumer that adverse action is being taken based on information
in the Consumer Report. Furnish a copy of Summary
of Consumer's Rights under the Fair Credit Reporting Act to
the applicant/consumer. Furnish a copy of Summary of Consumer's
Rights Under the Fair Credit Reporting Act form to the applicant/consumer.
- Provide a
means for the applicant consumer to dispute information contained
in the Consumer Report if they believe it is incorrect. To print
off a copy of ABS' Dispute Policy, click here – ABS Consumer
Report Dispute Policy.
- Ensure that
only authorized personnel involved in the evaluation and job offer
process have access to the Consumer Report.
- Ensure privacy
of the applicant/consumer's employment screening information and non-disclosure
of Consumer Report information.
Notice to
Users of Consumer Reports:
Obligations
of users under the FCRA
Written
Company Policy
It is highly recommended that every employer develop a written company
policy covering applicant screening procedures, rights, privacy, evaluation
and retention. Every employee should have access to the policy, hiring
personnel should be very familiar with the policy and periodic internal
audits should be instituted.
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