Background Checks with Fair Credit Report Act Compliance

The Fair Credit Report Act (FCRA) requires certain guidelines be met during background checks for employment. These guidelines were designed to protect privacy while helping employers find the right candidates for any job. A data acquisition process is conducted on potential hires to find if the person is right for the job. This process leads to collecting specific information and must meet the correct criteria.

FCRA Guidelines

The FCRA clearly states what is and is not allowed during a background check. Many people applying for jobs will be familiar with this process. Every employer must follow these guidelines to be in compliance with the FCRA.

Every applicant must be informed in a separate document stating that a credit report will be requested for determining qualifications. This document may not be a part of the application itself. Written permission must be granted by the applicant for the employer to receive a credit report on this person.

Certification of compliance is required by the employer with an outside firm conducting the background check.

If the applicant is denied the job, this person must be provided with a copy of the consumer report describing why the job was denied. A copy of the Summary of Rights under the FCRA must also be included in this process.

Handling the Data

Privacy for applicants is very important. Because of this, there are requirements handling this information. These reports after use must be destroyed appropriately. This includes shredding, burning, and other destructive methods that permanently remove the information. It is important for applicants to remember that they can dispute the findings within the report. If evidence proves that there is infactual records on the report, they must be removed according to the FCRA.

The Fair Credit Reporting Act helps to protect privacy of applicants and to help employers find the suitable candidates. The FCRA provides specific guidelines that every employer must follow when using a consumer report as a hiring criterion. Every applicant has specific rights regarding this process.

TruDiligence provides businesses with consistent background check services. Please contact us so we can help you find your answers today.