Here’s the deal: Organizations that conductmust comply with the (FCRA). The law requires employers to take certain steps before they receive a consumer report, and before and after they take any “adverse action” based on that report.
One important requirement: You must give people a copy of a government form (Summary of Rights under the Fair Credit Reporting Act) prior to taking action—such as rejecting a job application—based on information in the credit report or criminal check.
A revised version of that form has been issued and employers should have begun using it Jan. 1. The revisions include instructing employees to contact a new federal agency, the Consumer Financial Protection Bureau (CFPB), and visit its web site to learn more about their FCRA rights. The revision doesn’t impose any new substantive requirements on your organization.
To access the new version of the form, go to: https://www.federalregister.gov/articles/2012/11/14/2012-27581/fair-credit-reporting-regulation-v-correction#h-13
The company that provided theshould also be able to provide such forms, but it’s best to make sure for yourself.
The CFPB has revised two other forms:
- Notice to Furnishers of Information: Obligations of Furnishers Under the FCRA
- Notice to Users of Consumer Reports: Obligations of Users Under the FCRA
These forms are also available at: https://www.federalregister.gov/articles/2012/11/14/2012-27581/fair-credit-reporting-regulation-v-correction#h-14.
Find more advice on how to legally use credit reports in background checks, plus download a copy of the new form, at www.theHRSpecialist.com/FCRAsummary.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/34228/conduct-background-checks-start-using-revised-fcra-form "