agency", the activities of esa fall under the requirements
of the Fair Credit Reporting Act ("FCRA") [15 USC 1681].
The significant provisions of the
FCRA are as follows:
- Reports provided by esa
may only be used for employment purposes;
- The applicant must be notified
in advance that a report may be obtained and that if
they are denied employment based on the report, they
have certain rights under the FCRA.(esa's
standard Authorization and Consent form provides the
- The applicant must provide
written authorization; and
- esa may not report
negative information that is more than seven years old
(10 years for bankruptcies) unless the applicant is
expected to earn more than $75,000 per year. However,
the seven-year limit does not apply to criminal
If adverse action is taken based
on information contained in the report, the applicant must
be informed verbally, or in writing, and provided the
- esa's name, address and
toll free number - (800-706-8848).
- A statement that esa
did not make the adverse decision and is not able to
explain why the adverse decision was made.
- A statement that the applicant
has a right to a free disclosure of the report if a
request is made to esa within 60 days. (Note:
Disclosure includes providing a copy of the credit
report and any public record information. Investigative
reports, such as interviews with previous employers and
references, are not disclosed except for an explanation
of the nature and scope of the report.)
- A statement setting forth the
applicant's right to dispute directly with esa
the accuracy or completeness of any information
provided. If information is inaccurate, it will be
corrected or deleted and a revised report will be
** 2013 Changes : The Consumer Financial Protection Bureau (CFPB) has made a change to three notices required by the Fair Credit Reporting Act, effective January 1, 2013. The change directs consumers, furnishers and users of employee background checks to the CFPB instead of the Federal Trade Commission (FTC), and are part of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) that was signed into law on July 21, 2010.
The forms that are being updated are all used in the background screening process, and are required by the FCRA. They include:
"A SUMMARY OF YOUR RIGHTS UNDER THE FCRA"
"NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA"
To comply with the new law, you will need to stop using the old forms and notices by January 1, 2013.