Disclosure and Authorization for Background Investigation

Under the Fair Credit Reporting Act (FCRA) employers must get an employee's written consent before seeking an employee's credit report. If you decide not to hire or promote someone based on information in the credit report, you must provide a copy of the report and let the applicant know of his or her right to challenge the report under the FCRA. Some states have more stringent rules limiting the use of credit reports.

Employers may use credit reports for many different business reasons including hiring, promotion, transfer, retention and termination of employees. Businesses running credit reports are checking on how an individual manages his personal finances. Under FCRA legislation, businesses may only access an employee's or future employee's credit report with his written consent. Also, the report sent to employers, known as a credit header, is modified and does not contain account numbers. This is to reduce fraud and identity theft.