Some services will check state records, others will check federal records. The Federal Trade Commission has stated that you must comply with the FCRA requirements when you hire a commercial company to provide background checks, even if those checks do not include a credit history. The FCRA was passed in 1970 in response to concerns about the accuracy of information maintained in various data banks. It was amended in 1996 and those amendments took effect in 1997. The law governs many kinds of information, including any information about an individual s credit, character, reputation, personal characteristics, or mode of living if the information is collected for the purpose of determining a person s eligibility for credit or employment.
Companies providing background screening information are subject to the requirements.
If using commercial companies , there are steps you must follow with applicants. Prior to ordering background reports, you must tell the applicant you are ordering the reports and obtain permission to do so. This disclosure and signature request must be clear and conspicuous. The consent must be a separate release when you are using a commercial firm. It cannot be combined with other releases or statement to the applicant.