What is the Fair Credit Reporting Act?
The Fair Credit Report Act (FCRA) was passed in 1970 and is enforced by the Federal Trade Commission, the Consumer Financial Protection Bureau and private litigants. The FCRA is a United States Federal Government legislation that was created to help ensure accuracy, fairness, and privacy of consumer information that is obtained in files held by consumer reporting agencies. The Fair Credit Reporting Act along with the Fair Debt Collection Practices Act form the basis of consumer rights …show more content…
Before an employer can receive the background check of a potential employee, they must notify the prospective employee in writing and receive written consent back. If an employer conducts a background check and decides not to hire the prospective employee based on their report, they must provide the candidate a pre-adverse action disclosure. A pre-adverse action disclosure will include a copy of the candidate’s credit report and a copy of their rights. If a candidate does not agree with something found on the report, they can dispute it by receiving the name and address of the Consumer Reporting Agency from the employer. At all times, an individual has the right to records in their name. You may also receive your credit score, dispute inaccuracies, or seek justice from a company that has violated your