Fair Credit Reporting Act (FCRA)

Fair Credit Reporting Act (FCRA)

by Katie Kiernan Marble[1]

·  Why should I be focusing on FCRA right now?

o  January 1, 2013 - employers covered by FCRA are required to provide new and updated notices to employees.

o  FCRA is now enforced by the recently created Consumer Financial Protection Bureau

·  Which employers are subject to FCRA?

o  Employers who utilize third parties to provide consumer reports relating to job applicants and employees.

·  What is a consumer report?

o  Any written, oral, or other communication of information by a consumer reporting agency that bears on a consumer’s creditworthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.

·  What are an employer’s obligations under FCRA?

o  Before obtaining a consumer report, an employer must certify that it:

§  Notified the applicant/employee and got that individual’s permission to get a consumer report;

§  Complied with all FCRA requirements; and

§  Will not discriminate against the applicant or employee or otherwise misuse the information, as provided by any applicable federal or state equal opportunity laws or regulations.

o  Before an employer may take an adverse employment action based upon information contained in the consumer reports, it must give the applicant/employee:

§  A notice that includes a copy on the consumer report relied upon in making the decision; and

§  A copy of Summary of Rights Under the Fair Credit Reporting Act.

o  After taking an adverse employment action, the employer must provide the consumer with an adverse action notice, including:

§  Name, address, and phone number of the consumer reporting agency that supplied the report;

§  A statement that the company that supplied the report did not make a decision to take the unfavorable action and cannot give specific reasons for it; and

§  Notice of the right to dispute the accuracy or completeness of the information in the report, and to get an additional free report from the company if requested within 60 days.

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[1] Katie Kiernan Marble is an attorney in the Employment Law Practice Group at the law firm of McLane, Graf, Raulerson & Middleton, P.A. Katie can be reached at 603-628-1490 or . The McLane Law Firm is the largest law firm in the State of New Hampshire, with offices in Concord, Manchester, Portsmouth, and Woburn, Massachusetts.