Originally passed in 1970, the Fair Credit Reporting Act (FCRA) has been amended many times since then, most recently in 2010. It regulates “the accuracy and fairness of credit reporting” and “reasonable procedures” to meet the needs of both commerce and consumers for information and confidentiality.
At Ars we pride ourselves on having FCRA certification, which means we know the history of the FCRA, how to interpret and disclose the information in consumer reports and what will trigger audits and penalties. When we perform an employee background check for you that includes credit history, we maintain full compliance with the FCRA.
Among other compliance activities, we make sure that:
- We have written permission from the potential or current employee to check their background.
- The employee is told if negative information is used against them.
- Access to the information is limited.
A poll of Human Resource managers in 2006 revealed that 43 percent of their companies ran background credit checks on job candidates. Yet, the U.S. Congress has considered (but so far failed to pass) several bills that would prohibit or limit the use of credit history in employment background checks. Clearly, the activity is controversial and the penalties for violating ever-changing FCRA rules can be steep.
If no one on your Human Resources department is FCRA certified, call us today.