What is Consumer Reporting Agency (CRA)?

LiveRec EditorialUpdated

A consumer reporting agency (CRA) is a company that assembles information about people, such as criminal records, and provides it as a consumer report to others. Employers who use a CRA for a background check must follow the Fair Credit Reporting Act, including a clear disclosure, written consent and the adverse action steps before refusing a candidate.

Example

An employer orders a background report from a CRA after the candidate signs the disclosure and consent. If the report affects the decision, the employer sends a pre-adverse action notice first.

See FCRA, adverse action and background check.

Sources

This is general information, not legal, tax or immigration advice. Rules change and your situation may differ. Consult a licensed attorney or qualified adviser.