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
    1. 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.
    2. 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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