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What is the Fair Credit Reporting Act (FCRA)?
The Fair Credit Reporting Act (FCRA) is a crucial piece of legislation that governs how credit information is collected, used, and shared. This law plays a significant role in protecting your privacy and ensuring the accuracy of your credit report. Here’s a breakdown of what the FCRA entails and how it affects you, especially in the context of employment.
The FCRA, established in 1970, is designed to regulate the collection, dissemination, and use of consumer information, including credit scores. The act aims to ensure that credit reports are accurate, fair, and kept confidential. It outlines how credit bureaus must handle your data and sets standards for how lenders and employers can use this information.
FCRA and Employment: What Employers Can and Cannot Do
Can My Employer Check My Credit Score?
Yes, an employer can check your credit score, but there are strict rules governing this process. Under the FCRA, employers must obtain your written consent before accessing your credit report. This consent is known as “candidate consent to report.” Without your permission, an employer cannot legally pull your credit information.
Will My Credit Be Affected If My Employer Checks It?
Generally, an inquiry made by an employer for a background check will not impact your credit score. This is known as a “soft inquiry” and differs from a “hard inquiry,” which can affect your credit score. Employers’ checks for hiring purposes are typically considered soft inquiries, so they won’t impact your credit score directly. However, it’s important to note that if you’re applying for credit and there’s a hard inquiry, that can affect your credit score.
Your Rights Under the FCRA
Accuracy and Fairness
The FCRA ensures that the information in your credit report is accurate and fair. If you find errors in your credit report, you have the right to dispute them. Credit bureaus are required to investigate any discrepancies you report and correct any inaccuracies found. This is crucial because errors in your credit report can affect your ability to secure loans or even employment.
Consent and Disclosure
When an employer wants to check your credit, they must notify you and get your written consent. This is a key aspect of the FCRA. If an employer decides to take adverse action based on your credit report—such as not hiring you or firing you—they must provide you with a notice that includes the name of the credit bureau that supplied the report, so you can obtain a copy of it and review it for errors.
Handling FCRA Credit Bureau Disputes
If you encounter issues with your credit report due to inaccuracies, you can file a dispute with the credit bureau. The FCRA requires that credit bureaus investigate and resolve disputes in a timely manner. If your dispute is not resolved satisfactorily, you may need to seek help from an income discrimination lawyer or an attorney specializing in employment discrimination.
Take Action Against Income Discrimination
The Fair Credit Reporting Act (FCRA) is essential for protecting your credit information and ensuring it’s used appropriately. Understanding your rights under the FCRA can help you navigate situations where your credit report might be checked by employers or other entities. If you believe your rights under the FCRA have been violated, or if you’re facing issues related to income discrimination or employment discrimination, consulting with a specialized lawyer can provide you with the necessary guidance and support.
By staying informed about the FCRA and its provisions, you can better manage your credit information and safeguard your rights.
Call Us
We at Filippatos PLLC stand in proud solidarity with all employees. If you are experiencing income discrimination at work, please give us a call at 888-9-JOBLAW for a free consultation. We will do our utmost to help secure you the justice you deserve.