Fair Hiring in Banking: The FDIC’s Final Rule to Revise FDIC Regulations
On July 30, 2024, the Federal Deposit Insurance Corporation (FDIC) approved the Final Rule to Revise FDIC Regulations Concerning Section 19 of the...
With Verified Credentials' mobile-first candidate experience, you meet candidates where it's most convenient. Learn how easy we make it.
Ongoing monitoring of driving records can help employers avoid risk and improve driver safety. Learn about the benefits of adding Verified Credentials' newest solution to your screening strategy.
Learn the latest trends in employment background checks. This report uses real-life usage data to uncover how employers are screening across industries.
Verified Credentials is a leading background screening company. Since 1984, we’ve helped validate and secure relationships through the use of our comprehensive screening solutions. We offer a wide variety of background checks, verifications, and innovative screening tools.
Our accreditation confirms that our policies, processes, and employee training meet rigorous industry compliance standards.
1 min read
Verified Credentials Nov 25, 2019 12:00:00 AM
What’s your reason for completing background checks? Is it to help you make educated hiring decisions? Or possibly for other business purposes? This distinction is essential because the Fair Credit Reporting Act (FCRA) includes restrictions on why background checks are obtained and used.
A user of a background check report, known as a consumer report under the FCRA, can only request and obtain that report on someone if they have a permissible purpose to do so.
A permissible purpose could be:
But what if you want to use a background check for more than one permissible purpose? What if, for example, you want to use it for a legitimate business need and then for an employment decision? The Federal Trade Commission (FTC) has come out with advice for any person that’s thinking about “double-dipping”: Don’t do it.
Whenever you get a background check from a screening provider, you have to certify that you have a single permissible purpose of doing so and identify what that lawful reason is. This, in turn, helps protect the candidate. When a candidate gets their copy of their background check results from a screening provider, they can see precisely what organization obtained the report and why. Using a background report for one purpose helps you, too. The FTC states, “getting a new consumer report when you have a new purpose helps your business ensure that you obtain the most current information about the consumer.”
Have questions about how this might apply to you? Review the list of FCRA’s permissible purpose options with your legal advisor to identify your permissible purpose.
On July 30, 2024, the Federal Deposit Insurance Corporation (FDIC) approved the Final Rule to Revise FDIC Regulations Concerning Section 19 of the...
The Consumer Financial Protection Bureau (CFPB) issued a recent policy statement advising employers to comply with the Fair Credit Reporting Act...
Illinois Governor J.B. Pritzker signed House Bill 3773 into law on August 9, 2024, expanding the state’s regulations on the use of artificial...
Safety is one of the top reasons employers use pre-employment background checks, as it is essential to protecting employees, customers, and the...
As an employer that conducts background checks, you’re probably familiar with the federal Fair Credit Reporting Act (“FCRA”) and know that there’s...
When completing background checks, ensuring compliance with federal, state, and local consumer reporting laws is only one consideration for an...