Every employer using credit reports to make employment decisions must abide by the(FCRA). To do that, employers must have a legitimate business need for consumer credit reports, and must take certain steps both before and after they initiate an adverse action based on those reports to avoid violating the law.
The Fair Credit Reporting Act prohibits employers from using information found in investigative consumer reports or consumer reports provided by a consumer reporting agency against an employee or applicant without having a legitimate business need or without notifying applicants before requesting their consumer reports and obtaining from them a written acknowledgement of the notification. The FCRA also requires employers that use consumer reports to give applicants the telephone number of the reporting agency and a statement of their rights under the law to dispute the accuracy or co...(register to read more)
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