Orange County Employment Attorneys

The Fair Credit Reporting Act

The Fair Credit Reporting Act was passed in 1970. It is a federal law that regulates how consumer credit information is gathered and used. For the last 38 years, it has formed the basis for consumer credit rights. The enforcement of the law comes under the responsibilities of the Federal Trade Commission.

Employers can use an individual’s credit information when making a decision about whether or not to hire that person. There are two requirements that employers must follow when using such information. First, they must notify an individual when negative action is taken because of the credit report. Second, they must tell the individual the company from which they requested the credit report.

In fact, under the Fair Credit Reporting Act employers are required not only to notify potential employees when they will use their credit reports, but also to get the written permission of job candidates whose credit reports employers want to check.

Candidates are not required to give their permission, but if an employer requests permission and the candidate does not provide it, the candidate is not likely to get the job. Additionally, under the Fair Credit Reporting Act employers cannot use an individual’s filing for bankruptcy against that individual.

Contact an Orange County Employment Lawyer for More Information

There are many nuances to the Fair Credit Reporting Act, and employers must follow all requirements of the law. Contact the Orange County employment attorneys of Perry Smith if you feel that something was wrong with the way your credit report was used. They can be reached by calling 1-888-356-2529.