FCRA Compliant Background Checks


FCRA (Fair Credit Reporting Act) compliant background checks are widely being used especially for hiring in positions involving managing of finances. FCRA compliant background checks help in hiring suitable candidates in such positions. Virtual Badge is one such FCRA compliant system which helps in conducting efficient background checks.

Benefits of FCRA Compliant Background Checks

The FCRA compliant background checks help the employers to assess the responsibility and accountability of the applicant towards their personal finances. It provides a way to assess the applicant’s aptitude while handling finances. This type of background check is more popularly used for vacancies which involve handling of finances in the company. If applicants have serious credit issues and have unhealthy financial habits and they do not pay their bills on time, then they may not be the best fit to work in positions which require handling and managing finances of the employer like point of sale cashiers, accountants, accounts receivables/payable clerks etc.

FCRA compliant background checks ensure that the right candidate is recruited. Such candidates with a high level of integrity and accountability in managing the finances of the company can help enhance the brand image and develop confidence among other employees and customers.

Considerations Before Running FCRA Background Checks

Before running the FCRA background checks, the employer should ensure that it is being done only for recruitment purpose. Running such screenings for personal reasons is a violation of the privacy of the individual and the employer can be subject to legal action. The employer should also take the written consent of the individual before running the FCRA compliant background checks. It is illegal to do such screenings without the knowledge and consent of the applicant. Consent forms signed by the applicants will protect the employers from any potential lawsuits in the future.

If the employer is using a third-party for the background checks then it has to submit a signed statement that the background check is being run only for the hiring purpose and it is not in violation of any state laws. Finally, if the employer decides not to hire an applicant based on their credit records, then the applicant has to be informed in writing that they will not be hired due to the result of background checks. The applicant has 60 days to contest this and if the employer does not receive any communication from the applicant after 60 days, then it is at liberty to select the appropriate candidate and close the hiring process.