What Are the Employer's Responsibilities Under the Fair Credit Reporting Act?

Published on by Lena Moss

A couple of years prior, you might not have heard much about the Fair Credit Reporting Act. It is a vital part of background checks and pre-employment screenings. We should know first the meaning of the FCRA. The Fair Credit Reporting Act is a government law that administers how a credit reporting agency handles credit information. The FCRA is intended to ensure the integrity and protection of a man's credit information. It required credit reporting offices, and the elements that report credit information to those offices, to ensure all data is fair, precise and classified.




The Fair Credit Reporting Act represents any information given by a consumer reporting organization, which is any element that assembles collects background information of people for different organizations. This applies to all background checks, not only those including credit reports. In the event that your organization conducts background checks on candidates for business use through background check companies, you are required to consent to the FCRA. Job candidates whose rights are abused with respect to the FCRA can sue for damages.


So what are the employee's responsibilities under the FCRA when running a background screening? To begin with, your organization must have an admissible reason for directing a background check. This incorporates screening candidates for employment or screening current workers for promotion.



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