You reject one applicant because the report shows a debt load that may be too high for the proposed salary, even though the report shows a good credit repayment history. Another applicant is rejected because the report shows only one credit account, and you want someone who has shown greater financial responsibility. The FCRA is designed primarily to protect the privacy of consumer report information and to guarantee that the information supplied by consumer reporting agencies is as accurate as possible. Congress expanded employer responsibilities because of concern that inaccurate or incomplete consumer reports could cause applicants to be denied jobs or cause employees to be denied promotions unjustly. A consumer report contains information about your personal and credit characteristics, character, general reputation, and lifestyle.
Employers often do background checks on applicants and get consumer reports during their employment.
Applicants are often asked to give references. Whether verifying such references is covered by the FCRA depends on who does the verification. Key Provisions of the FCRA Amendments Written Notice and Authorization . You also must get the person's written authorization before you ask a CRA for the report. Adverse Action Procedures.