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This question is about employer.
What is FCRA compliance?
FCRA compliance, or Fair Credit Reporting Act (FCRA) compliance means to adhere to the requirements laid out in the Fair Credit Reporting Act. The Fair Credit Reporting Act (FCRA) is a law that was put into place to protect newly hired employees from discrimination concerning their credit reports.
The law stipulates that an employer must gain written consent from the new employee to access and review their credit report. It also has requirements to ensure that all background checks are accurate, transparent, and fair to potential new hires. Organizations that are not FCRA compliant might be exposed to long and expensive lawsuits.
To remain FCRA compliant many organizations enlist the help of third-party employee screening services. This relieves them of certain worries concerning FCRA because employee screening services follow consumer reporting regulations. A consumer report contains many different forms of sensitive information regarding potential hires, including:
Credit score
Credit health
Character and general reputation
Personal characteristics
Mode of living
This information is normally used to gauge suitability for a variety of things, such as employment, credit services, or insurance services. FCRA provides protection and safeguards job applicants by giving them the following rights:
All applicants have the right to be informed of a background check by a potential employer
They have the right to give the potential employer consent to perform a background check for employment
All applicants have the right to read and review the information that relates to their financial and personal details
All applicants have the right to make corrections to background checks if they contain information the applicant believes to be false or misleading
All applicants have the right to make an appeal on decisions where the outcome arrived unfairly from the applicant's perspective
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