The FCRA is designed primarily to protect the privacy of consumer report information and to guarantee that the information supplied by a consumer reporting agency (CRA) is as accurate as possible. Amendments to the FCRA which went into effect September 30, 1997 significantly increase the legal obligations of employers who use consumer reports. Congress expanded employer responsibilities because of concern that inaccurate or incomplete consumer reports could cause applicants to be denied jobs or cause employees to be denied promotions unjustly. The amendments ensure (1) that individuals are aware that consumer reports may be used for employment purposes and agree to such use, and (2) that individuals are notified promptly if information in a consumer report may result in a negative employment decision.
Key Provisions of the FCRA
Written Disclosure & Authorization
Before you can request a consumer report for employment purposes, you must notify the individual in writing in a document consisting solely of this notice that a report may be used. You also must get the person’s written authorization before you request the report.
Adverse Action Procedures
If you take any adverse action based in whole or in part on information supplied by Inquirehire, you must do the following:
Before you take the adverse action, you must give the individual a pre-adverse action notice that includes a copy of the individual’s consumer report and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act a document prescribed by the Federal Trade Commission. Inquirehire will provide you with the summary of consumer rights.
After you’ve taken an adverse action, you must give the individual notice orally, in writing, or electronically - that the action has been taken in an adverse action notice. It must include:
- The name, address, and phone number of Inquirehire.
- A statement that Inquirehire supplied the report but did not make the decision to take adverse action and cannot give specific reasons for it.
- A notice of the individual’s right to dispute the accuracy or completeness of any information Inquirehire furnished, and his or her right to an additional free consumer report from Inquirehire upon request within 60 days.
Certifications to Consumer Reporting Agencies
Before giving you an individual’s consumer report, Inquirehire will require you to certify that you are in compliance with the FCRA and that you will not misuse any information in the report in violation of federal or state equal employment opportunity laws or regulations. A Certification of Permissible Purpose form needs to be completed and on file with Inquirehire.