Fair Credit Report Act

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Fair Credit Report Act

Fair Credit Reporting Act 1970
University Of Phoenix
BIS/220
Professor Bob Branch

Congress enacted the Fair Credit Reporting Act in 1970 because the improper use of credit records. The reporting agencies put in place procedures for meeting the needs of commerce for consumer credit, personal insurance, and other information in a manner that is fair to the consumer, which is confidential, accurate, relevant, and properly used (Maurer & Thomas, 1997). The fair credit report act even has an impact on how employers conduct outside investigations on employees. The FTC made an amendment to the Fair Credit Report Act making newly expanded disclosures notification and consent requirements to apply to employers who use the Fair Credit Report Act when making employment decisions (Morgan, Owens & Gomes, 2000). Employers are required to provide in writing to employee’s using clear understandable language, stating that a consumer investigative report may be obtained for employment purposes. Employer must give notice to employee separate from any other disclosures. Employer must also give written consent before he or she can investigate further. If an employer decides that an investigation is an appropriate action second notice disclosure must be given to the employee. The employer has three days to request an investigative report for an outside consumer reporting agency. A third notice must be given to the employee of the nature of the investigation only if the employee requests by notice. The employer must give a written description within five days. The employer must also let the Fair Credit Report Act know that required disclosures have been made to the individual who is investigated. A copy of the FCRA must be given to the employee to correct any information that is incorrect on the report. The Fair Credit Act was created because the advances in technology. Such advances would be the ability to report credit and information to...
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