Navigating the vast world of FCRA compliance can be overwhelming and confusing at times to say the least. Plus the high stakes of noncompliance are high. Failing to abide by FCRA regulations puts your organization at risk for a potentially expensive and reputation-damaging lawsuit. For example, the federal fine for “willful non-compliance is actual damages or statutory damages” can be up to $1,000 per violation. But don’t worry! Background Checks for Volunteers has compiled the information below to get you on your way to understanding FCRA compliance.
The Fair Credit Reporting Act (FCRA) is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies (CRAs), such as True Hire. It was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports.
The FCRA regulates the collection, dissemination and use of consumer information, including consumer credit information. Background checks are included under the FCRA. Businesses must abide by the FCRA regulations regarding background checks in order for their screening process to be compliant.
Adverse action is not hiring an applicant or firing a volunteer/employee based on background information obtained through a company in the business of compiling background information, e.g. Background Checks for Volunteers.
es. According to a 2011 report released by the FTC entitled 40 Years of Experience with the Fair Credit Reporting Act: An FTC Staff Report with Summary of Interpretations, background checks conducted on volunteers and contractors are considered for “employment purposes.” See page 32 of the report.