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Employment Credit Reports
Compliance
How employers can stay compliant with Fair Credit
Reporting Act (FACTA)
Fair Credit Act Compliance: If you are using
any of our consumer reports, including our instant public records
products, to assist in determining employment eligibility, you are
required under federal law to do the following:
- Obtain a signed Authorization Release
Form
- Provide a Pre Adverse Action
Letter
- Provide a Decline Letter to applicant
stating the reasons for their disqualification and how to dispute
the findings
- Provide a Summary of
Consumer Rights
TIP: EMPLOYER -
BEFORE TAKING ADVERSE ACTION IN AN EMPLOYMENT DECISION BASED ON A CREDIT REPORT, THE FCRA REQUIRES YOU TO PROVIDE THE
CONSUMER WITH A COPY OF THE CONSUMER REPORT, ALONG WITH A WRITTEN
DESCRIPTION OF THE CONSUMER'S RIGHTS UNDER THE FCRA. BACKGROUND CHECKS SYSTEMS,
INC. HEREIN HAS PROVIDED YOUR COMPANY WITH COPIES OF THE CONSUMER'S
RIGHTS STATEMENTS FOR THIS PURPOSE.
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Legal Summary Statement
Para informacion en espanol, visite www.ftc.gov/credit o escribe a
la FTC Consumer Response Center, Room 130-A 600, Pennsylvania Ave.
N.W., Washington, D.C. 20580.
A summary of your rights under the Fair Credit Reporting Act: the
Federal Fair Credit Reporting Act (FRAY) promotes the accuracy,
fairness, and privacy of information in the files of consumer
reporting agencies. There are many types of consumer reporting
agencies, including credit bureaus and specialty agencies (such as
agencies that sell information about check writing histories,
medical records, and rental history records). Here is a summary of
your major rights under the FRAY. For more information, including
information about additional rights, go to www.ftc.gov/credit or
write to: Consumer Response Center, Room 130-A, Federal Trade
Commission, 600 Pennsylvania Ave. N.W., Washington, D.C. 20580.
* You must be told if information in your file has been used
against you.*
Anyone who uses a credit report or another type of consumer report
to deny your application for credit, insurance, or employment - or
to take another adverse action against you - must tell you, and
must give you the name, address, and phone number of the agency
that provided the information.
* You have the right to know what is in your file.*
You may request and obtain all the information about you in the
files of a consumer reporting agency (your "file disclosure"). You
will be required to provide proper identification, which may
include your social security number. In many cases, the disclosure
will be free. You are entitled to a free file disclosure if:
* A person has taken adverse action against you because of
information in your credit report
* You are the victim of identity theft and place a fraud alert in
your file
* Your file contains inaccurate information as a result of
fraud
* You are on public assistance
* You are unemployed but expect to apply for employment within 60
days.
In addition, by September 2005 all consumers will be entitled to
one free disclosure every 12 months upon request from each
nationwide credit bureau and from nationwide specialty consumer
reporting agencies. See www.ftc.gov/credit for additional
information.
* You have the right to ask for a credit score.*
Credit scores are numerical summaries of your credit-worthiness
based on information from credit bureaus. You may request a credit
score from consumer reporting agencies that create scores or
distribute scores used in residential real property loans, but you
will have to pay for it. In some mortgage transactions, you will
receive credit score information for free from the mortgage
lender.
* You have the right to dispute incomplete or inaccurate
information.*
If you identify information in your file that is incomplete or
inaccurate, and report it to the consumer reporting agency, the
agency must investigate unless your dispute is frivolous. See
www.ftc.gov/credit for an explanation of dispute procedures.
* Consumer reporting agencies must correct or delete inaccurate,
incomplete, or unverifiable information.*
Inaccurate, incomplete or unverifiable information must be removed
or corrected, usually within 30 days. However, a consumer reporting
agency may continue to report information it has verified as
accurate.
* Consumer reporting agencies may not report outdated negative
information.*
In most cases, a consumer reporting agency may not report negative
information that is more than seven years old, or bankruptcies that
are more than 10 years old.
* Access to your file is limited.*
A consumer reporting agency may provide information about you only
to people with a valid need -- usually to consider an application
with a creditor, insurer, employer, landlord, or other business.
The FRAY specifies those with a valid need for access.
* You must give your consent for reports to be provided to
employers.*
A consumer reporting agency may not give out information about you
to your employer, or a potential employer, without your written
consent given to the employer. Written consent generally is not
required in the trucking industry. For more information, go to
www.ftc.gov/credit.
* You may limit "prescreened" offers of credit and insurance you
get based on information in your credit report.*
Unsolicited "prescreened" offers for credit and insurance must
include a toll-free phone number you can call if you choose to
remove your name and address from the lists these offers are based
on. You may opt-out with the nationwide credit bureaus at
1-888-5-OPTOUT (1-888-567-8688).
* You may seek damages from violators.*
If a consumer reporting agency, or, in some cases, a user of
consumer reports or a furnisher of information to a consumer
reporting agency violates the FRAY, you may be able to sue in State
or Federal Court.
* Identity theft victims and active duty military personnel have
additional rights.*
For more information, visit www.ftc.gov/credit.
States may enforce the FRAY, and many states have their own
consumer reporting laws. In some cases, you may have more rights
under State Law. For more information, contact your State or Local
Consumer Protection Agency or your State Attorney General. Federal
enforcers are:
| Type of business: |
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Contact: |
| Consumer Reporting Agencies, Creditors and
others not listed Below |
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Federal Trade Commission: Consumer Response
Center - FRAY Washington, D.C. 20580
* 1-877-382-4357 |
| Consumer Reporting Agencies, Creditors and
others not listed Below |
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Federal Trade Commission: Consumer Response
Center - FRAY Washington, D.C. 20580
* 1-877-382-4357 |
| National Banks, Federal Branches /Agencies of
Foreign Banks (word "National" or initials "N.A."Appear in or after
bank's name) |
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Office of the Comptroller of the Currency
Compliance Management, Mail Stop 6-6 Washington, D.C. 20219
* 800-613-6743 |
| Federal Reserve System Member Banks (Except
National Banks, and Federal Branches/Agencies of Foreign
Banks) |
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Federal Reserve Board Division of Consumer -
Community Affairs Washington, D.C. 20551
* 202-452-3693 |
| Savings Associations and Federally Chartered
Savings Banks (Word "Federal" or initials F.S.B Appear in federal
institution's name) |
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Office of Thrift Supervision Consumer Complaints
Washington, D.C. 20552
* 800-842-6929 |
| Federal Credit Unions (Words "Federal Credit
Union" Appear in institution's name) |
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National Credit Union Administration 1775 Duke
Street Alexandria, VA 22314
* 703-519-4600 |
| State-Chartered Banks that are Not members of
the Federal Reserve System |
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Federal Deposit Insurance Corporation Consumer
Response Center 2345 Grand Avenue, Suite 100 Kansas City, Missouri
64108-2638
* 1-877-275-3342 |
| Air, Surface, or Rail Common Carriers regulated
by former Civil Aeronautics Board or Interstate Commerce
Commission |
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Department of Transportation Office of Financial
Management Washington, D.C. 20590
* 202-366-1306 |
| Activities subject to the Packers and Stockyards
Act, 1921 |
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Department of Agriculture Office of Deputy
Administrator - GIPSY Washington, D.C. 20250
* 202-720-7051 |
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Understanding Credit Reports - 