• The FCRA is designed to protect the privacy of consumer report information and to guarantee that the information supplied by consumer reporting agencies is as accurate as possible.

Employers may use consumer reports when they hire new employees and when they evaluate employees for promotion, reassignment, and retention — as long as they comply with the FCRA. The FCRA spells out employer responsibilities when using consumer reports for employment purposes.

The FCRA is designed primarily to protect the privacy of consumer report information and to guarantee that the information supplied by consumer reporting agencies is as accurate as possible. Amendments to the FCRA over the years have significantly increased 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 that individuals are:

• Aware that consumer reports may be used for employment purposes and agree to such use,
• Notified promptly if information in a consumer report may result in a negative employment decision, and
• Provided contact information for the consumer reporting agency that provided the information.