Before Obtaining a Consumer Report

 
Provide the individual with a “Disclosure & Authorization” form. [Version 1] [Version 2]

Obtain his/her signature (electronic signature is OK)

Provide the individual with “A Summary of Your Rights Under the Fair Credit Reporting Act

(Extra) Provide any required state-specific disclosures

(Extra) For investigative consumer reports: provide the individual with notice that:

  • An investigative consumer report may be made
  • S/he has the right to request disclosure of the nature and scope of the investigation

Certify to the consumer reporting agency that:

  • You notified the individual of your intent to obtain a consumer report
  • You received his/her permission to obtain the report
  • You complied with all FCRA requirements
  • You will not discriminate against the individual or otherwise misuse the information, as provided by any applicable federal or state equal opportunity laws or regulations
  • (Extra) For investigative consumer reports: You have made the additional disclosures required (see #5)
  • (Extra) For investigative consumer reports: You will comply with providing the individual with written disclosure of the nature and scope of the investigation (if requested) within 5 days of the request

Before Taking an Adverse Action

 
Provide the individual with a “Pre-Adverse Action Disclosure

Provide the individual with a copy of the report

Provide the individual with “A Summary of Your Rights Under the Fair Credit Reporting Act

(Extra) Provide any required state-specific notices

Wait at least 5 business days before taking an adverse action

Continue to actively evaluate the individual based on his/her response to the report

After Taking an Adverse Action

 
Provide the individual with an “Adverse Action Notice” within 3 days of taking the adverse action based in whole or in part on the consumer report. This notice must provide the individual with:

  • Notice that an adverse action has been taken based in whole or in part on a consumer report
  • The name, address and telephone number of the agency that provided the report
  • A statement that the agency did not make the adverse decision and is not able to explain why the decision was made
  • A statement of the individual’s right to request from the consumer reporting agency, at no charge, the information in the individual’s file if the individual requests the report within 60 days
  • A statement of the individual’s right to dispute directly with the agency the accuracy or completeness of any information provided by the agency

(Extra) Provide any required state-specific notices

Please refer to Joe Guffey’s and Kayt Kopen’s presentation, “Finding Red Flags Without Raising Any: Employee Background Checks Under The Fair Credit Reporting Act” for additional information.