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A consumer disclosure is the long version of your credit report that contains all credit inquiries and suppressed information not found in your standard credit report, as well as the normal credit report records of balances, payment history, personal information, etc.
Information excluded from consumer reports further include: Arrest records more than 7 years old. Items of adverse information, except criminal convictions older than 7 years. Negative credit data, civil judgments, paid tax liens, and/or collections accounts older than 7 years.
Consumer reporting companies collect information and provide reports to other companies about you. These companies use these reports to inform decisions about providing you with credit, employment, residential rental housing, insurance, and in other decision-making situations.
Get written permission from the applicant or employee. This can be part of the document you use to notify the person that you will get a consumer report. If you want the authorization to allow you to get consumer reports throughout the person's employment, make sure you say so clearly and conspicuously.
FCRA Authorization: Obtain Permission for a Background Check A compliant FCRA authorization form is an acknowledgement that a pre-employment background check will be conducted. It can be presented as a self-contained document or jointly with an FCRA disclosure form.
Investigative consumer reports are not really used to evaluate your creditworthiness. If fact, information from your credit report cannot be used in an investigative report.
To regulate the consumer credit reporting and related industries to ensure that consumer information is reported in an accurate, timely, and complete manner; to give individuals information when consumer reports are used to evaluate credit applications; and to protect the confidentiality of information.
Under the FCRA, a background check report is called a "consumer report." This is the same "official" name given to your credit report, and the same limits on disclosure apply.
Examples of permissible purposes include subpoenas or court orders, written instructions from the consumer, credit transactions with a consumer, employment purposes with written authorization from a consumer, insurance underwriting purposes, tenant screening, and national security investigations.
Anytime an employer requests a consumer report on an applicant or employee, obligations under the FCRA are triggered. Consumer reports can include a broad range of categories, including driving records, criminal records, credit reports, and other reports from third parties, such as drug tests.