{"id":31676,"date":"2016-03-31T19:21:46","date_gmt":"2016-04-01T00:21:46","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/using-credit-reports-subsequent-disclosure-is-no-longer.html"},"modified":"2018-01-18T13:57:33","modified_gmt":"2018-01-18T18:57:33","slug":"using-credit-reports-subsequent-disclosure-is-no-longer","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/business-operations\/using-credit-reports-subsequent-disclosure-is-no-longer.html","title":{"rendered":"Using Credit Reports: Subsequent Disclosure is no Longer Sufficient"},"content":{"rendered":"
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Employers frequently use consumer reports and credit checks to gain information about job applicants and promotional candidates, without realizing the problems these reports can create. In many cases, use of credit checks may be a violation of the disclosure provisions of the federal Fair Credit Reporting Act (FCRA).<\/p>\n

The FCRA covers two types of credit information: consumer reports and investigative consumer reports. A consumer report is a written or oral communication regarding an individual’s credit standing, character, general reputation, personal characteristics or mode of living. When these reports are used for the purpose of evaluating an individual for employment, promotion, or reassignment, an employer must comply with the provisions of the FCRA. An investigative consumer report is simply a more exhaustive type of consumer report, which includes additional information obtained through interviews with the individual’s friends, neighbors and others who know that person.<\/p>\n

Disclosure and Authorization<\/i><\/b><\/p>\n

Prior to the recent amendments, employers could obtain a consumer report without an individual’s consent and without notifying the person. However, the FCRA now requires employers to provide notification to, and receive authorization from, an individual before<\/u> obtaining a consumer report.<\/p>\n

In order to comply with the FCRA, employers must provide potential employees with the following:<\/p>\n