Fair Credit Reporting Act (FCRA)

Employers who have a business need to evaluate and monitor employee credit problems, and who use credit reports to do so, should also be aware of the Fair Credit Reporting Act. The FCRA requires employers who deny employment on the basis of a credit report to so notify the applicant and to provide the name and address of the consumer reporting agency used.

Penalties for Non-Compliance

Actual damages, punitive damages, attorneys’ fees

Source: Society for Human Resource Management