Under this section, a consumer reporting agency is required to disclose to the consumer, upon request, all information in the consumer's file at the time of the request. The agency must also disclose the sources of the information and, in the case of a credit report, any recipients of a consumer report on the consumer which it has furnished for employment purposes within the two-year period preceding the request. This ensures transparency and allows individuals to be aware of the information that may be used by employers in making employment decisions.
This section stipulates that a consumer reporting agency may not charge a fee to a consumer for providing the consumer with a copy of the consumer's file if the consumer has been notified of an adverse action or has received a notice of a denial of employment within the past 60 days. This provision is designed to ensure that consumers have the ability to access the information used in making decisions that affect their employment without being deterred by cost.
According to this section, a consumer reporting agency may furnish a consumer report for employment purposes only if the agency has received a written authorization from the consumer. The agency must also provide a disclosure to the consumer that informs them of their right to request additional disclosures and a written summary of their rights. This ensures that consumers are aware of and consent to the use of their personal information for employment-related background checks.
This section requires that before taking any adverse action based in whole or in part on a consumer report, the user must provide the consumer with a copy of the report and a written description of the consumer's rights under this chapter. The user must also provide the consumer with the name, address, and telephone number of the consumer reporting agency that furnished the report. This ensures that consumers have the opportunity to review and potentially dispute the information before adverse action is taken.
Under this section, users of consumer reports are required to develop and implement reasonable policies and procedures to enable the user to form a reasonable belief that the consumer report relates to the consumer about whom the user has requested the report when the user receives a notice of address discrepancy. This is to prevent identity theft and ensure the accuracy of the information used in employment decisions.
The Fair Credit Reporting Act (FCRA) is a federal law that promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. It is designed to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports and to regulate the collection, dissemination, and use of consumer information, including consumer credit information. Under the FCRA, when employers use third-party agencies to conduct background checks (referred to as 'consumer reports' or 'investigative consumer reports'), they must adhere to several requirements: - Provide a clear and conspicuous written disclosure to the individual before the report is obtained, explaining that a consumer report may be obtained for employment purposes. - Obtain the individual's written authorization before obtaining the report. - Certify to the consumer reporting agency that the employer has followed the required steps, will use the information in the report lawfully, and will not discriminate against the individual. - Provide the individual with a pre-adverse action disclosure that includes a copy of the consumer report and a copy of 'A Summary of Your Rights Under the Fair Credit Reporting Act' before taking any adverse action based on the report. - After taking an adverse action, provide the individual with an adverse action notice that includes the contact information of the consumer reporting agency, a statement that the agency did not make the decision to take the adverse action and cannot provide specific reasons for it, and a notice of the individual's right to dispute the accuracy or completeness of any information provided by the agency. The FCRA also stipulates that employers conducting investigations of suspected misconduct by an employee or for compliance purposes are not required to disclose the investigation or obtain the employee's permission. However, they must provide a summary of the nature and substance of the communication after the investigation if the information may be used for adverse employment actions.