Employment Background Check Credit Reports
Employment credit reports are normally only ordered on applicants in positions of financial trust or on top executives of a company.
Accountants, bookkeepers, cashiers and others with access to a company’s financial books and records might fall into this category.
You must of course be consistent in that you must order these reports on all individuals in the same position.
You may not discriminate by ordering an employment credit report on select individuals.
Site inspections required for credit reports: Click Here
These FCRA compliant reports do not result in a credit “inquiry” and do not adversely affect an applicant’s credit history.
Therefore, companies that have their own access to credit reporting agencies should not order credit reports on applicants themselves as these would not be compliant with the FCRA.
Several states have passed laws limiting credit reports for employment decisions with provisions that require a connection to actual job duties.
Those states are:
California, Colorado, Connecticut, Delaware, Hawaii, Illinois, Maryland, Nevada, Oregon, Vermont, and Washington .
The information contained in these reports includes bankruptcies, liens, judgments, and a credit history which provides a summary of how the applicant manages his/her financial obligations.
These reports are also useful as an additional source of identity verification as they provide information on the applicant’s aliases, social security number, address history, and employment history.
Employers can not see your credit score.
The credit report that provides your credit score is only provided to those authorized to use your credit score in granting or extending credit, not for employment purposes.
Special handling required.
Unlike some other information or public records that may be a part of a background check, credit reports are considered highly sensitive personal and private information.
Employers must make sure, that under no circumstances do they order a credit report without the express written and signed authorization of the applicant.
It should be noted that FCRA regulations require an applicant to be notified if adverse action is to be taken as a result of information that was reported in a consumer report.
Moreover, the credit bureaus impose strict requirements on us and our clients with regard to the handling of the credit reports they provide.
In the case of Employment Credit Reports, the employer is not permitted to discuss any part of a credit report with the applicant.
Even if information contained in the credit report is the reason the applicant will not be hired.
Nor, is the employer permitted to provide a copy of the credit report to the applicant.
If the applicant wishes to request a copy of their credit report, they must contact us (NES/ABS) directly to request a copy of their credit report.
How to dispute a credit report: Click Here
If information contained in the credit report is the reason for the applicant not being hired, In this case, we will send the preliminary notice of adverse action on behalf of the prospective employer.
And, approximately 5 days later, if the applicant has not disputed anything on the credit report, you will send the final notice of adverse action to the applicant on your behalf.
Our Automated Employment Screening provides an applicant controlled process that allows
FCRA compliant background check forms, including Electronic Chain-Of-custody forms
and releases to be completed online by the applicant.
We provide several short videos to easily acquaint you with the system.
This makes the background check process fast and easy.
Please Click or call for more information.
A price list will be promptly e-mailed to you.
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None of the information contained in this web site should be construed as legal advice.
All forms, policies, information and procedures should be reviewed by your legal counsel before being used in any way.