The FCRA applies to credit bureaus, as well as companies that provide consumer reporting services. It also covers specialty agencies that provide services like background checks, tenant screening, and bank account verification. These agencies and companies are obligated to follow strict rules when it comes to using public records in their business. The laws governing these organizations are complex and can be difficult to understand. An experienced FCRA compliant attorneys can help individuals protect their rights.
Errors on a consumer’s credit report can have serious consequences, including denial of loans and jobs, increased interest rates, and even the inability to secure housing. The law protects consumers who notice errors on their reports and take steps to correct them. However, if the error has a significant impact on a consumer’s life, it is essential to hire an FCRA compliant attorney.
A lawyer can level the playing field with companies that have legal teams dedicated to defending their business practices. An attorney familiar with the tactics used by these companies will be able to efficiently investigate and fight for your rights, resulting in maximum compensation.
Some of the key elements of the FCRA include the right to request a free annual consumer report, the right to dispute inaccurate information and have it promptly corrected, and the requirement that an adverse action notice be sent when certain negative actions are taken based on the contents of a credit report. An attorney can also help you recover actual or statutory damages, and in some cases, punitive damages.
In addition to the protections offered by the FCRA, a consumer has other rights under state law. A background check company must obtain consent from an individual before conducting a search. In the case of an employment screening, the company must make a pre-background check disclosure that includes a summary of the consumer’s rights, a list of federal regulators that enforce the provisions with their contact information, and a statement that any additional rights may be found under state law.
Having a reliable background check partner is vital for employers to avoid potential violations. Whether your company is large or small, it’s important to keep up with the latest hiring laws in your state and nationally. Providing regular training for employees who handle consumer credit or background checks, and auditing business practices to ensure compliance with the laws, are just a few ways your company can stay FCRA compliant. The failure to send an adverse action notice, relying on inaccurate information in the decision-making process, and improperly verifying records that can’t lawfully be reported are just a few of the common mistakes that could put your company at risk for an FCRA violation.