Consumer Reports

Consumer Reports are just another term for Employment Background Checks. Acquiring background checks pre-employment and occasionally during employment is recommended to ensure security of your company, assets, and decision-making.

What you need to know before seeking a consumer report:

  • The applicant must be made aware that a report is being sought and that its contents could affect their current or future employment & they must receive this notice in a written documents separate from an employment application.
  • The applicant must provide written permission to seek a consumer report.
  • Ensure that in the process of seeking a consumer report that you have complied with all FCRA rules and regulations & have reviewed local and state laws pertaining to consumer report information.

When you should take adverse action:

Adverse action is the denial or termination of employment based on the information discovered in a consumer report. Before taking such action, you must:

  • Inform the applicant in writing of the decision.
  • Provide the applicant with A Summary of Rights Under the FCRA.
  • Provide a consumer copy of Consumer Report
  • Give the applicant an opportunity to officially rectify any misinformation.

After you take adverse action:

  • Give the applicant proper notice, preferably in writing and with clear reasoning.
  • Provide as much contact information as possible on the company used to obtain the consumer report.
  • A disclaimer that the company used in obtaining the report is not responsible for the decisions made based on said report.
  • Follow the Disposal Rule and properly & securely dispose of the report and relevant information.

Following these steps will help to ensure the protection of every party involved in consumer report background checks.