What you need to know about the FCRA
The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies (CRA). Pinpoint Private Investigations, LLC is a consumer reporting agency as defined by the FCRA. CRA's assemble reports on individuals for credit, insurance, rental and employment decisions, among others. As such, we have procedures in place to ensure our practices are accurate and confidential.
There are four main keys to staying compliant under the FCRA.
- Permissible Purpose - your organization must have a reason to run a background check such as a possible employment offer or a credit transaction.
- Consent and disclosure - the applicant must be provided a clear and conspicuous notice that a background check is going to be performed along with a summary of their rights.
- Pre-Adverse action - Before you reject an applicant for any negative information found in the background check you must give a notice that includes a copy of the report you relied upon to make your decision and a copy of a Summary of your Rights Under the FCRA.
- Post-Adverse action - This notice informs the applicant of their rights to see information being reported about them and to correct inaccurate information.