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The Fair Credit Reporting Act Made Simple: What it Means to You

 

First and foremost, the Fair Credit Reporting Act (FACT Act) requires that you have a good reason for requesting a background check, which includes pre-employment purposes, and requires that you have written permission from the applicant before requesting that Pre-Check conduct an investigation.

 

The FACT Act describes an applicant as a person who applies for employment by mail, telephone or through a computer. If you use Pre-Select, our online application system, applicants are defined as job seekers who have successfully completed the pre-qualifying questions. If a background check is conducted and adverse action is taken based on that application, the applicant must be provided a the notice of adverse action by telephone, computer, or postal mail.

 

Further within the document, however, the FACT Act requires that an applicant who is going to have a pre-employment background check be provided with a “clear and conspicuous written disclosure.” The employer must also obtain “prior written authorization” from the applicant. However, if your potential employee is a truck driver, and the only interaction between you and the applicant is by mail, telephone or computer, you may accept oral or electronic consent, and notice of adverse action may be provided in the same way.

 

Pre-Check provides an applicant release for background checks to all our clients which contains all the information required to complete a background check, including the disclosure. If your business is located in one of the states with additional requirements, such as the Spanish language disclosure for California, we will provide those documents as well. If you have not received your copy or would like a replacement, please contact your Pre-Check representative, or download the forms here.

 

January 1st, Employers must use the new Consumer Financial Protection Bureau (CFPB) Summary of Rights.

Upload your copy here: http://www.consumer.ftc.gov/sites/default/files/articles/pdf/pdf-0096-fair-credit-reporting-act.pdf 

For more detail refer to this link: http://www.jdsupra.com/legalnews/employers-must-begin-using-new-fair-cred-60353/

 

 

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