FCRA (Fair Credit Reporting Act)

LiveRec EditorialUpdated

The Fair Credit Reporting Act (FCRA) is the US federal law that governs background checks done by consumer reporting agencies, including consent, disclosure and the steps before a decision against you. Employers must follow it when they use such a report.

What an employer must do, per the FTC

Before getting the report

  • Give you written notice, in a stand-alone document and not inside the job application, that a report may be used for employment decisions.
  • Get your written authorization.
  • Certify to the reporting company that it gave notice, obtained permission and will follow the law.

Before an adverse action (such as not hiring)

  • Give you a copy of the report it relied on and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act.

After an adverse action

  • Tell you the decision was based on the report, and give you the reporting company's name, address and phone number.
  • Tell you that the reporting company did not make the decision and cannot explain it.
  • Tell you that you may dispute the accuracy or completeness of the report and get a free additional report within 60 days.

Your rights as a candidate

You can dispute the accuracy or completeness of the report, as described above. Some states and cities add their own rules.

How it shows up on LiveRec

Background checks on LiveRec are run through Checkr and start with the candidate's consent. See background check request for the steps you see.

Example

An employer orders a check through Checkr; the candidate consents first.

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.