This letter may be used by an employer when it is contemplating not hiring a person based on information in a background check obtained from a third-party consumer reporting agency in compliance with the Fair Credit Reporting Act (FCRA).
This letter may be used by an employer when it is basing an adverse employment decision on background check information it received from a third-party consumer reporting agency in compliance with the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act does not prevent an employer from conducting third-party credit checks so long as the employer obtains the applicant's written consent and complies with the FCRA's notice requirements. However, some states have gone beyond federal law and placed restrictions on when employers can conduct credit checks of job applicants or employees for screening purposes to certain types of positions.