Fair Credit
Reporting Act
(FCRA)

The federal Fair Credit Report Act (FCRA) governs the use of consumer reports used for employment purposes.  Before employers utilize the services of Employment Screening Services, or any other screening service, it is very important they understand the requirements and obligations outlined in the FCRA.

Because the FCRA has “Credit” in its title, some have mistakenly assumed it only pertains to the use of credit reports. The FCRA covers the use of all Consumer Reports, of which Credit Reports are just one type.  A Consumer Report includes all manner of information, both public and private, that is collected, verified, or maintained on an individual by a business for the purpose of selling the information to a third party.

A Consumer Report for  “employment purposes” is defined as a report used for the purpose of evaluating a consumer (job applicant or employee) for employment, promotion, reassignment or retention.   In short, Employment Screening Services is a Consumer Reporting Agency (CRA) and ALL our products and services are consumer reports.

As of September 30, 1997, Congress substantially amended the FCRA in order to further protect the privacy of consumers.  When engaging the services of a CRA, both the employer and the CRA are required to follow certain steps by the FCRA.  Failure to do so can result in substantial legal exposures. 

Below are articles and links that will help with your understanding of the specific obligations under the FCRA.  Also included are all the necessary documents needed to comply with the FCRA.

Please feel free to call us if you have any questions about the FCRA.