We are here to help! But, it is YOUR responsibility to know the law, “no excuses”.
Compliance Screening Services
NAPS is not a legal firm and cannot provide legal advice. We highly recommended you consult legal counsel to ensure your forms, policies and procedures, related to the use of CRA-provided information, are in compliance with applicable state and federal laws.
Compliance Screening Solutions, Alabama
FOLLOW THE LAW:
Federal Laws are in place to protect consumers but they also play a major role in your defense! The laws are clear and you must abide by them to protect your company. The Fair Credit Reporting Act (FCRA) requires compliance with certain regulations. For a full copy of the FCRA or details of the Obligations of Users under the FCRA, click on the links below or you can go to www.consumerfinance.gov/learnmore or write to: Consumer Financial Protection Bureau, 1700 G Street N.W., Washington, DC 20006
Our customers have access to a dedicated document library area in our web based order system. Amongst others the following compliance support is available there:
Sample disclosure form
Sample authorization form
Sample pre-adverse action notices
Sample adverse action notices
- Terms and Conditions (PDF)
- System Access and Security Policy (PDF)
- Fair Credit Reporting Act (FCRA)
- Fair and Accurate Credit Transaction Act (FACT Act)
- DPPA – Drivers Privacy Protection Act 18 U.S.C. § 2721 et. seq. (Public Law 103-322)
- Obligations of Users under the FCRA (PDF)
- Consumer’s FTC Summary of Rights (PDF)
Before ordering a consumer report, FCRA compliance procedures “must” to be followed by the (End User) to gain access to consumer reports.
The “End User” (Client) must certify in writing your permissible purpose for the use of consumer reports. The End User must also certify that you will comply with: (i) the Fair Credit Reporting Act’s (FCRA) requirements of providing a written disclosure and obtaining a written authorization from the applicant; (ii) all pre-adverse and adverse action procedures; and (iii) not using the consumer report in violation of any equal opportunity laws or any other laws.
End User agrees to provide a clear and conspicuous disclosure in writing to the applicant in a “document that consists solely of the disclosure”, stating that a consumer report may be obtained for tenant or employment purposes.
Which type of authorization/consent form should you use? “STANDARD OR INVESTIGATIVE”?? The type of background check you are running will determine the type of authorization/consent you require. If your request seeks out only the facts, then a “standard” disclosure and authorization is acceptable. If your request goes beyond “just the facts” and includes research resulting in subjective information of a personal nature then an “investigative” disclosure and consent is required. THIS IS A VERY IMPORTANT PART OF BEING IN COMPLIANCE!!
Do not make the terrible mistake of using the wrong form. If you think you will start a background check by simply checking the facts and are using the “standard” consent, then further decide that you want to develop a more thorough investigation, you will need to obtain an independent separate “investigative” authorization/consent form. We are here to help! But, it is ultimately YOUR responsibility to know which disclosure and consent is required, “no excuses”.
Employment Screening Compliance:
If the background report provides information that will adversely affect the opportunities of the consumer, either in whole or in part, you must perform “ALL” of the following “BEFORE” such an adverse action is made.
- Provide the consumer with a pre-adverse notification, either orally, in written form or electronic communication.
- Provide the consumer with a copy of the background report.
- Provide the consumer a description in writing of their consumer rights under the FCRA in either written form or electronic communication.
If a landlord or employer decides to take adverse action, based in whole or in part, on the information revealed in the consumer report, you must perform the following, either in writing, orally or electronically* (we recommend written documentation).
- Provide the consumer with an adverse action notification*, either orally, in written form or electronic communication.
- Provide to the consumer, the name, address and telephone number, including a toll-free number, of the consumer-reporting agency (CRA).
- Include a statement that “the CRA did not make the decision to take the adverse action and is unable to provide the specific reasons why the adverse action was taken”.
- Provide notice to the consumer of his/her right to obtain within (60) sixty days, a free copy of the report from the CRA.
- Provide notice to the consumer of their right to dispute the accuracy or completeness of any information in a consumer report furnished by the CRA.
*Some variances exist for non-written consent for the trucking industry