Compliance with the Federal Fair Credit Reporting Act

  • By Amber Kruth
  • 30 Sep, 2015
Consumer reports must be compliant with the Fair Credit Reporting Act

Compliance with the Federal Fair Credit Reporting Act

When performing background checks on potential employees, it is essential that you, as the employer, follow the Federal Fair Credit Reporting Act (FCRA). Failure to comply with these regulations may result in a civil lawsuit or even criminal prosecution.

We at Courthouse Concepts are here to guide you through the process and help you stay compliant with state and federal regulations. We are accredited experts in the field of screening services, including pre-employment screening, drug screening, tenant screening, and on-boarding; and our resources are available to you throughout the process.


Here are a few necessary forms to remain compliant with the FCRA:


Authorization/disclosure form

This is a form signed by the applicant prior to running a background check. It has to be a separate form submitted with the application and authorizes the employer to obtain a consumer report.


Pre-Adverse Action Letter

If you are not hiring someone based on his/her consumer report (background check), then a pre-adverse action letter has to be sent to the applicant with a copy of the report and the summary of rights under the Fair Credit Reporting Act.

You can obtain this and other useful forms directly from our site, along with the report and summary of rights. Visit .

If you are one of our website users, the pre-adverse letter, summary of rights and a copy of the report can be sent with a click of a button.


Adverse Action Letter

This is to be sent within five (5) working days after the pre-adverse is sent, giving the applicant five (5) days to call and dispute anything he/she thinks is not accurate. If the applicant disputes his/her consumer report, CourtHouse Concepts is tasked with re-verification of the initial report. During this process, no action should be taken. If no dispute is made, the adverse action letter should be sent, It is also recommended to again send the report and the summary of rights.


For more information on these forms and other screening resources, visit our website at www.courthouse .



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By Mark Ridgeway 15 Jan, 2018
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