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FCRA Guidelines
The Fair Credit Reporting Act
(FCRA) was amended effective September 30, 1997. The FCRA is designed to
promote accuracy, fairness, and privacy of information in the files of
every consumer reporting agency (CRA).
You can find the complete text
of the FCRA, 15 U.S.C. 1681-1681u, at the Federal Trade Commissions web
site (www.ftc.gov). The FCRA gives you
specific rights, as outlined below.
In addition to the FCRA being
a legal document, which in itself makes it open to interpretation, many
definitions and requirements of the act are contradictory and go against
what many consider good business practice by overprotecting the guilty and
under protecting good employers that are just doing their best to maintain
a safe work environment. Please consult your own legal counsel for their
interpretation as it pertains to your business.
The major changes and how
they affect your current hiring practices are as follows:
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Before requesting any
background verification information for employment purposes you must:
a) Disclose that a report
will be ordered, on a document that consists solely of this disclosure.
b) You must obtain
written
consent from the applicant.
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If your application
form currently includes your release, this may be satisfactory. The Act
calls for a separate document that consists solely of the disclosure
that the reports may be procured . See {604(b)(2)(A)} or
contact us
at INTELLICHOICE®.
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If the applicant will
earn $75,000 or more per year, there are no restrictions on the number
of years of information that can be reported. If less than this amount,
the amount of information is limited to seven (7) years.
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Before you take adverse
action based in whole or in part on the information you receive, you
must:
a) notify the applicant
of the adverse action, orally, in writing or electronically.
b) provide the reports to
the applicant.
c) advise the applicant
of their rights. Summary of
Rights.
d) advise them of the
consumer reporting agency that provided the adverse information.
INTELLICHOICE® is a registered trademark
of INTELLICHOICE, INC.
Personal information
submitted to INTELLICHOICE is used for
identification purposes only and is not sold, loaned or provided to any
other agency or source which is not directly involved in your transaction.
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