3.1 Client Legal Responsibilities — CRA shall have procedures in place to inform client that they have legal responsibilities when
using consumer reports for employment purposes.
Prohibits an employer from
using a consumer report for employment purposes unless certain conditions apply.
This prohibition shall not apply if an employer is required by federal or state law to
use a consumer report for employment purposes.
Not exact matches
Rep. Steve Cohen, a Tennessee Democrat, introduced a bill last summer that would amend the Fair Credit
Reporting Act to prohibit the
use of
consumer credit checks against employees «
for the
purposes of making adverse
employment decisions.»
Requires notification to the
consumer when a
consumer reporting agency furnishes a
consumer report for employment uses purposes.
A
consumer report is prepared by a
consumer reporting agency, whose information is
used or collected
for employment purposes, that consists of any written or oral or other communications of any information about a candidate's credit worthiness, standing or capacity, candidate character, general reputation, personal characteristics and mode of living.
The subject of the background check must be made aware that a
consumer report will be
used for employment purposes and must agree to such
use.
For example, one of the nation's largest banks recently faced a class action lawsuit alleging «unauthorized and improper use of consumer reports» for employment screening purpos
For example, one of the nation's largest banks recently faced a class action lawsuit alleging «unauthorized and improper
use of
consumer reports»
for employment screening purpos
for employment screening
purposes.
The applicant or employee must be made aware that a
consumer report will be
used for employment purposes and must agree to such
use.
Despite the disclaimers, the fact that the app had been advertised
for employment purposes means that they were «expected to be
used» as a factor in determining a
consumer's eligibility
for employment — a key definition of a
consumer report.
The Fair Credit
Reporting Act (FCRA) applies in situations where employers use a consumer reporting agency (background screening company) to obtain background checks for employment - related
Reporting Act (FCRA) applies in situations where employers
use a
consumer reporting agency (background screening company) to obtain background checks for employment - related
reporting agency (background screening company) to obtain background checks
for employment - related
purposes.
In addition, various states have adopted their own laws that pertain to the procurement and
use of outsourced
reports used for employment evaluation purposes (Consumer Re
reports used for employment evaluation
purposes (
Consumer ReportsReports).
«Section 603 (h) defines «
employment purposes» to mean «a
report used for the
purpose of evaluating a
consumer for employment, promotion, reassignment or retention as an employee.»
Consumer Reporting Agencies (CRA) are entities that collect and disseminate information about
consumers to be
used for employment purposes.
Her practice includes the representation of
Consumer Reporting Agencies (CRAs), entities who furnish information to CRAs, and employers who
use background checks
for employment purposes.
The US Federal Fair Credit
Reporting Act (FCRA), 15 U.S.C. 1681 et seq. is the federal law that governs the preparation, dissemination, and
use of background screening
reports for employment purposes (
consumer reports).
Signature Information Solutions LLC
reports do not constitute
consumer reports as such term is defined in the FCRA, and accordingly these
reports may not be
used to determine eligibility
for credit,
employment, tenant screening or
for any other
purpose provided
for in the FCRA.
Regulation V and FCRA provides rules to credit
reporting and
consumer reporting agencies about collecting and disseminating information about
consumers to be
used in credit evaluations and
for other
purposes, including insurance applications and
employment.