Knowing the Law When It Comes To Background Checking

Published on by Lena Moss

The rules around background checks and background check companies are established by the national government of each country, subdivisions, states, cities and counties.
law.jpgMost background check companies are very familiar with the screening laws in the territories which they are operating in. If you are trying to do your own screenings on your own, you need to be careful about complying with the laws in your jurisdiction.
Fair Credit Reporting Act is a federal law that is governing background check companies and background screening. The act has many rules about bureaus for credit-reporting, such as the limit on being allowed to go back in order to report and check on an applicant’s credit history. You should still follow a few important rules when conducting credit checks, even when if you are using credit-reporting agencies to do your screening.  Here are a few rules to follow:
  • A written consent should be obtained from the applicants and current employees before viewing their credit reports.
  • A summary of applicants and employees’ rights must be provided by their Employer, which is under the FCRA before taking an action against them based on a credit report. Applicants can dispute incomplete information with the credit-reporting agency after they have been disqualified based on the negative information in a background check report.
  • You can do background checks by yourself but background check companies have staffs to research state laws and makes sure that they are in continual compliance. Background Check Companies has a lot of competition and has low prices these days; you are better off putting your ultimate decisions on a third party.

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