OVERVIEW OF FCRA RESPONSBILITY

Introduction

The Fair Credit Reporting Act (FCRA) requires that consumer reporting agencies and users of consumer reports follow appropriate guidelines for accurate and confidential handling of information relating to consumer credit, employment and other information in a manner which is equitable to the consumer.

Two Types Of Reports Covered By This Law

1. Consumer Report - any written, oral or other communication by a consumer reporting agency (such as Ascertain Screening and Investigations) which includes information such as credit worthiness and standing, character, and general reputation to be used as a factor in establishing a consumer’s eligibility for credit, employment or insurance.
2. Investigative Consumer Report – a consumer report which includes information bearing on the consumer’s character, general reputation or mode of living obtained through personal interviews with friends or associates of the consumer, including current or previous employers, schools or other institutions or business and personal references.

Ascertain Screening and Investigation’s responsibilities are to obtain certification from the end user (i.e., employer) that: Ascertain Screening and Investigation’s responsibilities

1. The information is being used for a permissible purpose under the FCRA (i.e., employment).
2. The end user will comply with the disclosure requirements to the applicant, including adverse action guidelines, as below.
3. The use of the information we provide will not violate any Federal or State Employment Laws.

Prior to requesting a Consumer Report, the end user/employer must provide the applicant a standalone document, in writing, that a consumer report is being requested.

If adverse action is to be taken based on the contents of the Consumer Report, a notice of pre-adverse action must be provided to the consumer, along with a copy of the Consumer Report and the document, "A Summary of Your Rights under the Fair Credit Reporting Act".

Upon adverse action, an Adverse Action Letter must be sent to the consumer, and should contain the following:

• The name and address of the consumer reporting agency that provided the report, with a statement that the third party did not make the decision.
• A statement to the consumer of their right to dispute directly with the consumer reporting agency (Ascertain Screening and Investigations) any inaccuracies of the information provided in the report.