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There are many key provisions of the Federal Credit Reporting Act (FCRA), including:
Certifications to consumer reporting agencies
Before giving employers an individual’s consumer report, the CRA will require them to certify that:
Written notice and authorization
Before employers can get a consumer report for employment purposes, they must:
Adverse action procedures
An adverse action is when employers:
If employers rely on a consumer report for an adverse action, there are steps to follow, such as:
Trucker exemption
In 1998, Congress amended the FCRA to provide special procedures for mail, telephone, or electronic employment applications in the trucking industry. In the case of applicants who will be subject to state or federal regulations as truckers, employers do not need to:
No pre-adverse action disclosure is required. Instead, employers must, within three days of the decision, provide an oral, written, or electronic adverse action disclosure consisting of:
Also, employers should be aware of the procedures with respect to obtaining and providing information about a driver’s safety performance history set under:
Enhanced disclosure requirements related to credit scores
Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the FCRA’s disclosure requirements related to adverse action taken because of an individual’s credit score.
If a credit score is used in whole or in part in employers’ decisions to take adverse action against an employee or applicant, they must disclose the following information either electronically or in writing:
The enhanced credit score disclosure requirements are in addition to the existing pre-adverse action and adverse action disclosures.
Employers do not need to make the additional credit score and related information disclosures if:
However, they will still need to provide the traditional pre-adverse action and adverse action disclosures.
There are many key provisions of the Federal Credit Reporting Act (FCRA), including:
Certifications to consumer reporting agencies
Before giving employers an individual’s consumer report, the CRA will require them to certify that:
Written notice and authorization
Before employers can get a consumer report for employment purposes, they must:
Adverse action procedures
An adverse action is when employers:
If employers rely on a consumer report for an adverse action, there are steps to follow, such as:
Trucker exemption
In 1998, Congress amended the FCRA to provide special procedures for mail, telephone, or electronic employment applications in the trucking industry. In the case of applicants who will be subject to state or federal regulations as truckers, employers do not need to:
No pre-adverse action disclosure is required. Instead, employers must, within three days of the decision, provide an oral, written, or electronic adverse action disclosure consisting of:
Also, employers should be aware of the procedures with respect to obtaining and providing information about a driver’s safety performance history set under:
Enhanced disclosure requirements related to credit scores
Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the FCRA’s disclosure requirements related to adverse action taken because of an individual’s credit score.
If a credit score is used in whole or in part in employers’ decisions to take adverse action against an employee or applicant, they must disclose the following information either electronically or in writing:
The enhanced credit score disclosure requirements are in addition to the existing pre-adverse action and adverse action disclosures.
Employers do not need to make the additional credit score and related information disclosures if:
However, they will still need to provide the traditional pre-adverse action and adverse action disclosures.