Background Check Company Faces Lawsuit for FCRA Violation

A Georgia background check company is currently facing a lawsuit for violating the Fair Credit Reporting Act (FCRA). The case against Facts on Demand has brought considerable attention to the critical importance of FCRA compliance in the hiring process.

Background Check Disputes and FCRA Compliance

The Fair Credit Reporting Act establishes rules and guidelines to protect consumers from the improper or unfair use of information about them contained in certain records. Initially, the FCRA was intended to curtail discriminatory practices around using individual credit reports for many kinds of decisions. Today, the FCRA continues to cover credit reports and other, more broadly defined “consumer reports.” This includes criminal background checks.

Two CA Companies Fined for Fair Credit Reporting Act Violations

The Fair Credit Reporting Act is one of the most fundamental legislation governing the hiring process today. Because so many employers use background checks, FCRA compliance is not negotiable. The same applies to others who frequently use background checks, such as landlords or non-profit organizations. Complying with the FCRA ensures you receive more reliable information and respect applicants’ rights. The law intends to protect consumers from inaccurate or unfair reporting practices.