New limits on use of credit reports take effect in July

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in Employment Background Check,Human Resources

On July 21, a new amendment to the Fair Credit Reporting Act (FCRA) kicks in that affects employers using consumer reports that include credit scores to make employment decisions.

If “adverse action” is taken against an employee or applicant because of information in such reports, the employer must provide the person with a notice of the adverse action and the contact info for the agency that furnished the report. The FCRA also requires employers to get an applicant’s consent to order a credit report.

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