877.316.4808

CR Education

 

Compliance Overview

Critical Research, Inc. is active in our industry and continually monitors events that effect the background screening and hiring profession. Federal and state regulations change frequently and we encourage our clients to ensure compliance.
Critical Research, Inc., is a Consumer Reporting Agency (CRA) and the information we provide is governed by laws pertaining to our industry such as the Fair Credit Reporting Act (FCRA). Critical Research, Inc. implements several procedures to insure compliance with the laws that govern background screening and hiring practices.
Privacy is important to Critical Research, Inc and data obtained, used, or gained is used solely for the purpose of fulfilling our services as a CRA. We do not sell or provide access to the data we have in our possession.

We continually monitor legislation and notify you when any updates or changes occur within the background screening industry. Clients are encouraged to employ several methods of staying informed about issues within our industry.

 

Federal Regulations

Clients must comply with the Fair Credit Reporting Act (FCRA)
This law governs consumer reports and consumer reporting agencies (CRA’s). The FCRA protects the consumers’ right to privacy and fairness when preparing consumer reports on individuals.

Federal Trade Commission (FTC)
The FTC is an independent agency of the US government that enforces federal consumer protection laws that prevent deception and unfair marketplace practices. The FTC also enforces federal antitrust laws that prohibit anti-competitive mergers and other business practices that restrict competition and harm consumers. The FTC’s primary function is to protect consumers.

 

State Regulations

Many states have laws that are more strict and go beyond federal regulations to protect applicants. We will help clients with state compliance, but also encourage our clients to be active in monitoring the states they do business in.

Report Disputes and Information

Applicants who wish to dispute or obtain a copy of their employment report may request so in writing by sending to CRI Disputes, 400 Northridge Road, Suite 500, Atlanta GA 30350. A description of the dispute and authorization to release this information is needed before we can release this information.

What is a consumer report?
When a CRA assembles a report about an applicant or individual’s personal character, credit, criminal, reputation, lifestyle, and other relative information, the report becomes a consumer report regulated by the FCRA.

The FCRA covers the verification of references If verified by a third party other than the employer.The Act does not cover references verified by employers., Section 603(o) provides special procedures for reference checking; otherwise, checking references may constitute an investigative consumer report subject to additional FCRA requirements.

Key provisions of the FCRA
Written notice and authorization stating that a consumer report is going to be ordered.
You must have written and signed authorization to order a consumer report on an individual.

Adverse action procedures

Step 1

Before you take the adverse action, you must give the individual a pre-adverse action disclosure that includes:
• a copy of the individual's consumer report
• a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act"

Step 2:

After you've taken an adverse action, you must give notice to the individual - orally, in writing, or electronically that you have taken the adverse action. The notice must include:
• the name, address, and phone number of the CRA that supplied the report
• a statement that the CRA that supplied the report did not make the decision to take the adverse action and cannot give specific reasons for it
• a notice of the individual's right to dispute the accuracy or completeness of any information the agency furnished and his or her right to an additional free consumer report from the agency upon request within 60 days

Certifications to consumer reporting agencies
Before giving you an individual's consumer report, the CRA will require you to certify that you are in compliance with the FCRA and that you will not misuse any information in the report in violation of federal or state equal employment opportunity laws or regulations.

In 1998, Congress amended the FCRA to provide special procedures for mail, telephone, or electronic employment applications in the trucking industry. Employers do not need to make written disclosures and obtain written permission for applicants subject to state or federal regulation as truckers. Finally, no pre- adverse action disclosure or Section 615(a) disclosure is required. Instead, the employer must, within three days of the decision, provide an oral, written, or electronic adverse action disclosure consisting of:
• a statement that the employer has taken adverse action based on a consumer report
• the name, address, and telephone number of the CRA
• a statement that the CRA did not make the decision
• a statement that the consumer may obtain a copy of the actual report from the employer if he or she provides identification

In 2003, President Bush signed into law the Fair and Accurate Credit Transactions Act of 2003 (FACTA) to combat the increasing threat of identity theft and its effect on consumers and users of consumer reports. The new law allows consumers to make one call to receive advice, trigger a nationwide fraud alert, and protect their credit standing. The law establishes a nationwide system of fraud alerts for consumers to place in their files. CRAs that receive such alerts from consumers must follow procedures to ensure that any future requests are by the true consumer, not an identity thief posing as a consumer.

 

EEOC

A fact sheet issued by the U.S. Equal Employment Opportunity Commission ("EEOC") reminds employers to be careful in deciding what tests to use and how to score those tests. While the fact sheet does not stake out new ground, the EEOC's focus on an increase in testing-related discrimination charges should impel employers to ensure that their own procedures comply with federal anti-discrimination laws.
http://www.eeoc.gov/policy/docs/factemployment_procedures.html

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint, or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382- 4357), or use the online complaint form. The FTC enters Internet, telemarketing, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies worldwide.
If you feel you are a victim of identity theft, the Federal Trade Commission (FTC) has information available to assist you. The following URL is the FTC’s identity theft web site: http://www.ftc.gov/bcp/edu/microsites/idtheft/. In addition, the FTC has published a document that provides an overview of the identity theft issue. It is titled “Remedying the Effects of Identity Theft.”

Federal Trade Commission for the Consumer
1-877-FTC-HELP
www.ftc.gov