FCRA Background Check
How FCRA Background Checks and Investigative Consumer Reports Benefit an Employer
FCRA background checks are routinely done on new employees at larger corporations, or in any business where the
worker will be handling money.
The Fair Credit Reporting Act (FCRA) is a federal
law that is in place to protect consumers. It requires that the top three credit bureaus, Equifax, TransUnion
and Experian report the facts about your credit history, and that your credit report does not contain any
erroneous, or out-of-date information. Your information must be updated, and
credit bureaus must immediately remove any false information they have from
Second, the Fair Credit Reporting Act is in place to stop creditors and collection agencies from using deceptive
practice to contact you. They may not contact your neighbors, family or friends, informing them that you owe them
money, and they are limited to the time they can contact you during the day. Credit bureaus and other creditors can
be heavily fined if they abuse an FCRA background check.
Employers can also ask for an FCRA background check before hiring a new employee.
They normally do this if the employee will be required to handle a lot of money. There is a feeling among many
companies that if an employee has major financial problems, it may eventually lead to theft, or it may affect the
worker's productivity. Checking an applicant's background also creates a friendly and safe working environment for
all employees, and it's not discriminatory, if it is carried out in a fair manner with other employees in the same
On the other hand, a friend, or neighbor many not request an FCRA
background check on you out of curiosity.
How FCRA Background Checks are Performed
When an employer wants to run an FCRA background check, they are actually getting a consumer report, or an
investigative consumer report.
Here are some of the issues that are covered in these reports:
Credit Check - Does the applicant have bad credit? Has the applicant ever filed for
bankruptcy? Are many creditors actively trying to pursue the applicant right now? These are questions that the
employer might want to know.
Criminal records - Every employer wants to know if the person they are hiring is honest
and hard working. They also want to know if the person has ever been arrested, or incarcerated. FCRA background
checks can show if a person has been convicted of a crime, and it's not important if it was 30 years ago. These
records are indefinite. However, if the applicant was only arrested, this information can only be obtained if the
arrest happened less than seven years ago.
Driving Records - If the employer requires that the applicant uses a company vehicle, or
the applicant needs to use their own vehicle for job related work, they could request driving records.
Education Records - The employer will probably ask for transcripts from the universities
listed on the application. Education records are falsified on a daily basis. It's necessary for the employer to
request for certified transcripts directly from the university. FCRA background check guidelines state that a job
applicant must provide authorization for a company to request these documents.
Medical History - For certain jobs, it's required that the applicant have a clean bill of
health. In this case, an FCRA background check will require that the job applicant provide records for this.
Previous Employment - One good way for an employer to know if you are a good worker, is to
ask your previous employers. Companies will usually provide accurate information to any other company that requests
it if they have a signature from the former employee stating that they authorize them to release the
Professional Licenses - Certain jobs such as doctors, lawyers, and insurance agents, require
that the person have a professional license. Each state has licensing requirements, and issue licenses for many
References - Another vital part of an FCRA background check is to contact people, who know the applicant. They want to know
about the potential employee's character. It's possible that relatives, neighbors, church officials and others
can vouch for the applicant.
In closing, FCRA background checks are necessary for most employers. As long as they are
carried out legally, an honest employee should have nothing to fear.
The Best FCRA Background Check For Business Owners...
TalentWise - TalentWise
makes it easy for businesses of any size to run FCRA compliant employment
background checks. All you need is consent from your potential employee and you can run a fast an accurate
background check using their online interface.
Talentwise realizes that no two companies are the same so their service is designed to be the most flexible
employment screening option on the market.
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The Best FCRA
Background Check For Property Owners...
TenantDetective is an easy to use online service that provides background checks on renters. It
doesn't matter if you rent a single property out or own thousands of units, with TenantDetective you can easily run instant tenant screening reports. TenantDetective provides
criminal records, eviction records, terrorist databases, most wanted lists, and sex offender registries
nationwide. Plus all information provided is fully compliant with the Fair Credit Reporting Act
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