The Reference Company is a Consumer Reporting Agency (CRA) that provides consumer reports and investigative consumer reports for employment purposes to our clients. As a CRA, the information we provide in our reports is regulated by the federal Fair Credit Reporting Act (FCRA), as well as various state laws. The FCRA is designed to assure privacy of consumer report and to guarantee that information provided by the Consumer Reporting Agencies is accurate. The Reference Company is operated in compliance with these laws. We are committed to respecting the privacy of the information obtained in our reports.
See below for Information regarding Consumer Reports (for clients)
PROCEDURE FOR OBTAINING AND USING A CONSUMER REPORT FOR EMPLOYMENT PURPOSES
- This includes information regarding the procedure for obtaining a consumer report from a consumer reporting agency for employment purposes, as well as the adverse action procedure you must go through when you decide not to hire, promote, reassign, or retain an individual based in whole or in part on the consumer report.
NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA
- All users of consumer reports must comply with all applicable regulations, including regulations promulgated after this notice was first prescribed in 2004. Information about applicable regulations currently in effect can be found at the Consumer Financial Protection Bureau’s website, www.consumerfinance.gov/learnmore.
SAMPLE COMBINED DISCLOSURE AND AUTHORIZATION
- Before your company can get a consumer report for employment purposes, you must notify the individual in writing – in a document consisting solely of this notice – that a report may be used. You also must get the person’s written authorization before you ask a CRA for the report. Though the disclosure needs to be separate from the application, the disclosure can be combined with the written authorization (See “Combined Disclosure and Authorization” Sample). The Summary of Your Rights Under the Fair Credit Reporting Act document should be included with the disclosure for an investigative consumer report (See “Summary of Your Rights Under the Fair Credit Reporting Act”).
Note: A copy of background check reports (consumer report) may be requested by residents of California, Minnesota, and Oklahoma as prescribed by state law. Residents of other states may be provided a copy of the report upon request, only if adverse findings are indicated in which result in an adverse employment action.
SUMMARY OF YOUR RIGHTS UNDER THE FAIR CREDIT REPORTING ACT
TRC PRE-ADVERSE ACTION NOTICE
- Before you take the Adverse Action, you must give the individual a Pre-Adverse Action Notice (See “Pre-Adverse Action Notice” Sample), a copy of the investigative consumer report we provided to you and a copy of the Consumer Financial Protection Board’s document “A Summary of Your Rights Under the Fair Credit Reporting Act” (See “Summary of Your Rights Under the Fair Credit Reporting Act”).
SAMPLE ADVERSE ACTION NOTICE
- Final notice of adverse action (See “Adverse Action Notice” Sample) is given after a reasonable amount of time has passed after an applicant has been given a pre-adverse action notice along with a copy of the consumer report and summary of his/her consumer rights. Congress has provided that 5 business days is a reasonable time period to wait after the pre-adverse action letter before taking adverse action. H.R. Rep No. 103-486, at 30 (1994)
See below for Information regarding Consumer Reports (for applicants)
REINVESTIGATION REQUEST
- This form can be used by individuals (applicants) who authorized a consumer report for employment purposes in which adverse findings were found, and would like to dispute the accuracy or completeness of any information obtained in the report.
COPY REQUEST FOR CONSUMER REPORT
- This form can be used by individuals (applicants) who authorized a consumer report for employment purposes in which adverse findings were found, and would like to obtain a copy of the report.
Disclaimer: The information above is provided with the understanding that The Reference Company is not rendering legal advice. As laws change regularly and vary from state to state, you should consult a competent attorney when determining a course of action for preparing forms, policy or other documents for use in your company.