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What Is The Fair Credit Reporting Act

The screening industry is governed by the Fair Credit Reporting Act or FCRA. The basic tenets of this act are as follows:

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First and foremost, an applicant must expressly authorize the screen by signing an FCRA compliant release form. The screening agency typically provides this form to the Employer and requires that it be returned with the applicant's data, prior to beginning the requested searches and verifications.

Second, the applicant must be notified, in advance, if anything in the resulting report will be used to keep them from attaining the position.

Third, if the applicant disputes the findings of a screen, the screening agency must investigate the claim and re-verify the information.

Finally, screening can only be conducted for the specific purposes of doing due diligence on potential employees or tenants.

Many states, such as California and Minnesota, have laws that augment the FCRA. These typically have to do with providing the applicant with the contents of the report and a means by which to handle disputes.

It's important to understand that Complete Security Investigations LLC fully supports the intent of these statutes and considers full and active compliance by its clients to be a high priority.




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