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FCRA Compliance

The FCRA’s 4 key steps

  1. Employer Certification – Prior to receiving a consumer report (background report). An employer must first certify to Inquirehire in writing that the employer will follow several steps set forth in the FCRA.
    • Use the information for employment purposes
    • Will not use the information in violation of federal or state equal opportunity law
    • Obtain necessary disclosures and written authorization
    • Provide proper notices in the event adverse action is taken based in whole or in part on the background report
    • Provide additional information required under the FCA if an Investigative Consumer Report is needed
  2. Disclosure & Written Release – Before a background report is requested, the employer must disclose that a background report may be requested.   The employer must then obtain the applicants written consent.
  3. Pre-Adverse Action – If an employer intends not to hire an applicant based on the report, before taking any action the employer must provide a Pre-adverse action notice along with copy of the report and a copy of Summary of Your Rights Under the Fair Credit Reporting Act.
  4. Once the Pre-adverse action is sent to the applicant, and the employer intends to make a final decision not to hire, the employer must send a Notice of Adverse Action.

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