OBLIGATIONS OF USERS UNDER THE FCRA
The Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681-1681y, requires that this notice be provided to inform users of consumer reports of their legal obligations. State law may impose additional requirements. The text of the FCRA is set forth in full at The Federal Trade Commissions’ website at www.ftc.gov. Other information about user duties is also available at the commission’s website. Users must consult the relevant provisions of the FCRA for details about their obligation regarding the FCRA.
Obligation of all users of Consumer Reports
- Users must have a permissible purpose.
- Users must provide certifications, permissible purpose and written permission (release form).
- Users must notify consumers when adverse actions are taken
- Users have obligations to properly dispose of records containing consumer information.
If the employee/applicant is denied employment, promotion or is dismissed based in whole or in part on information contained in the background report, s/he must be given a written notice of adverse action. This notice may be given only after the employer has followed the required pre-adverse action process and the applicant/employee has had the opportunity to dispute.
The adverse action notice does not need to include the specific reason for the adverse action, but must:
- State that the adverse action is based either in whole or part on information contained in the background report provided by the background screening company
- State that the consumer reporting agency (the background screening company) did not make the adverse employment decision and does not know the basis for the decision.
- Include the name, address, and toll free number of the background screening company.
- State that the applicant/employee has the right to obtain another free copy of his/her background report within the next 60 days.
The Two Part Notification:
The pre adverse action letter notification is a service Ardor Agency offers. The pre adverse action notice gives the applicant an opportunity to review the report and dispute any findings it also makes them aware of their rights under the Fair Credit Reporting Act.
A final adverse action letter should be sent after the applicant has had the opportunity to contest the findings.
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