Fair Credit Reporting Act (FCRA) and State Mini-FCRAs: Step-by-Step Guidance for Compliance


Summary

This practice note provides step-by-step guidance for handling consumer reports and investigative consumer reports under the Fair Credit Reporting Act (FCRA)—15 U.S.C. § 1681 et seq. “Consumer reports” are any communications by a consumer reporting agency regarding an individual’s “creditworthiness, credit standing, character, general reputation, personal characteristics or mode of living” that the Company uses for employment purposes. 15 U.S.C. § 1681a(d). “Investigative consumer reports” are consumer reports for which information has been gathered “through personal interviews with neighbors, friends or associates” of the subject of the report or others who have knowledge concerning him or her. 15 U.S.C. § 1681a(e). Importantly, the FCRA’s provisions concerning such reports do not preempt state laws regulating the same subject. In light of these more-restrictive statutes on background checks, employers should also follow the particular restrictions imposed by the states in which it ...