1. Background Screeners are also often referred to as Consumer Reporting Agencies (CRAs), because the screenings we produce are construed by the law as consumer reports on prospective employees and tenants.
2. A consumer report is defined as:
Any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for:
- credit or insurance to be used primarily for personal, family, or household purposes;
- employment purposes; or
- any other purpose authorized under section 604.
3. CRAs do not typically provide fingerprinting and firearm background checks.
4. In addition to being governed by state and federal laws, all CRAs must comply with the guidelines set forth by the Fair Credit Reporting Act.
5. Under the FCRA, job applicants and potential tenants must be provided with a summary of their rights, along with any other applicable disclosures.
6. Employers/landlords (known as End Users in the industry) must obtain written authorization from the candidate before a background check can be conducted.
7. Prospective employees and tenants are legally entitled to request a copy of their consumer report.
8. In 2003, several leading background screening companies came together to found the National Association of Professional Background Screeners (NAPBS) to represent their interests and to “establish and promote a high level of ethics and performance standards for the screening industry.†The Association now represents over 800 background screening companies.
9. NAPBS provides a nationally recognized accreditation program for CRAs. Successful accreditation means passing a rigorous auditing process to ensure consumer protection, adherence to research, data, and verification standards, and legal compliance.
10. Many state and local governments are increasingly passing legislation that prevents employers and landlords from discriminating against prospective candidates, based on the candidate’s criminal history. These ‘Ban the Box’ laws work by delaying any inquiry into the candidate’s criminal record history, until after a determination has been made as to whether they qualify for the job or housing opportunity.
