What is the Fair Credit Reporting Act (FCRA)?

When you work with VSI, you can be assured that we are in full compliance with the governing standards in our industry. VSI provides FCRA compliance information and templates of all letters and forms necessary to comply with FCRA employment background screening requirements, including:

  • Applicant Consent and Disclosure forms
  • Adverse Action letters
  • Summary of Consumer Rights

The FCRA is designed to protect individuals by promoting accuracy, fairness, and privacy of information in the files of every Consumer Reporting Agency (CRA). Most CRAs are credit bureaus that gather and provide information about individuals. Companies that perform pre-employment screening services, such as VSI are also governed by the FCRA, as are the employers that use VSI’s background screening services. As an employer, it is important to be aware of the limitations and regulations instated by the Federal Fair Credit Reporting Act (FCRA), as failing to meet these standards may result in litigation and fines against your organization.

What Does the Federal Fair Credit Reporting Act (FCRA) Entail?

As an employer, you must adhere to the following guidelines:

An Applicant Must Be Told If the Information in Their File was Used Against Them

Anyone who uses a credit report or another type of consumer report to deny an application for credit, insurance, or employment – or to take another adverse action against an applicant – must inform the applicant, and provide the name, address, and phone number of the agency that provided the information. (Upon request, VSI will provide Adverse Action templates)

An Applicant Has the Right to Know What is in Their File

An applicant may request and obtain all the information in the files of a consumer reporting agency. They will be required to provide proper identification, which may include a social security number. (Upon request, VSI will provide the completed report to the applicant)

File Limitations May Apply

Access to an applicant’s file is limited. A consumer reporting agency may provide information about an applicant only to people with a valid need – usually to consider an application with a creditor, insurer, employer, landlord, or other business. The FCRA specifies those with a valid need for access.

An applicant must give consent for reports to be provided to employers. A consumer reporting agency may not give out information about an applicant to an employer, or potential employer, without written consent by the candidate. (VSI provides all consent and disclosure forms)

For more information, please call one of our credit reporting specialists today at 800-809-7732.