Compliance Download: A Summary of Your Rights Under the FCRA
Are you providing the proper documentation to a rejected candidate in the event your decision was influenced by the consumer report?
It’s important to have the right information on your side to avoid audits, fines, or even lawsuits. The Fair Credit Reporting Act (FCRA) is a Federal legislation enacted to promote the accuracy, fairness and privacy of consumer information contained in the files of consumer reporting agencies.
While the act does largely deal in lending practices, it also applies to employment where applicants have their consumer report provided to a prospective employer.
Directly from the report:
“You must be told if information in your file has been used against you. Anyone who uses a credit report or another type of consumer report to deny your application for credit, insurance, or employment – or to take another adverse action against you – must tell you, and must give you the name address, and phone number of the agency that provided the information.”
And that’s just the FIRST bullet point! So you can see how important this is to have in your bag of tools for your Adverse Action Process.