Background Screening: Transforming Your Business Decisions Part 1

The Basic Truths About Background Screening, Part 2 Copyright © 2015 TRAK-1 Technology, Inc. All Rights
1

The Basic Truths About Background Screening:
Transforming Your Business Decision – Part
Two
2
Trak-1 is an Accredited Member of NAPBS

Your Host: Rick Coltman
Director of Strategic Marketing and Alliances,
Trak-1 Technology, Inc.
• Please Post Any Questions or Comments You Have in the Comments
Section.
• Want Further Information or Have Additional Questions? Contact Trak-1 at
Rick.Coltman@trak-1.com
• Hopefully You Find this Webinar Informative! Please Join Us for Each
Webinar at http://trak-1.com/webinar
Your Presenter: Matt Graham
VP of Operations, Trak-1 Technology,
Inc.

What Key Federal
Law Governs
Your Background
Screening
Program?

Federal
Credit
Reporting
Act

Regulates The Collection,
Dissemination And Use Of
Consumer Information, Including
Consumer Credit Information.
Fair Credit Reporting Act, 15
USC 1681 Et Seq. (Oct. 26, 1970) (Fcra)

This Allows Consumers
To Receive One Free
Credit Report Per Year.
Amended By The Fair And Accurate
Credit Transactions Act (2003) (FACTA)

Was Originally Intended To Regulate
The Three Major Credit Bureaus.
The
FCRA

Today The Act Is Widely
Understood And
Interpreted To Also
Regulate Background
Screening Companies
And Users Of Any
Consumer Report

By The Federal Trade
Commission And Consumer
Financial Protection Bureau
And Consumers. Civil
Liability With Damages And
Government Imposed Civil
Monetary Penalties May
Apply.
The FCRA Is Enforced

What is the Purpose of the FCRA?
Protect
Consumers
2 Regulate Users Of Consumer Repor
1

What Qualifies As A
Consumer Report
Under The FCRA?

BACKGROUND SCREENING REPORTS
CONTAINING NO CREDIT
INFORMATION ARE A FORM OF
CONSUMER REPORT AND ARE
GOVERNED BY THE FCRA.
KEY POINT:

“A Written Or Oral
Communication That
Bears On A Consumer’s
Credit Standing, Credit
Capacity, Character,
General Reputation,
Personal Characteristics
Or Mode Of Living…”

“…Used Or Expected To Be Used
Or Collected In Whole Or In Part
For A Permissible Purpose” (I.E.,
For Employment, Residential
Living, Government Licensing,
Credit Extension, Etc.). Defined
Specifically In The Act And Does
Include Volunteer Screening Per
Regulatory Interpretation.

It Is Important To Note That
Reference Checks Conducted
With A Third Party Are A Form
Of Investigative Consumer
Report And Are Governed By
The FCRA.

Yes, The FCRA is King
But What Other Laws Should You
Consider?

Prohibits Disclosure Of Personal
Information Without The Express
Consent Of The Consumer With
Limited Statutory Exceptions;
And Imposes Record-keeping
Requirements On “Authorized
Recipients” Of Consumer
Records.
Driver Protection Privacy Act of 1994(DPPA)

Opened Access In Those States
Adopting It To The FBI’s National
Criminal Records Files To Schools,
Day Care Facilities, Youth Serving
Organizations. As Of 1998, Only 6
States Had Passed A Law.
National ChildProtectionAct of 1993 (NCPA)

Amended NCPA To
Allow Volunteer
Organizations
Access To Federal
Criminal Record
Files Whether Or
Not A State Law
Was Passed.
Volunteers for
Children Act of 1998
(VCA)

The Original Pilot Program, Called
Safetynet, Whereby Three Organizations –
National Mentoring Partnerships, Boys &
Girls Clubs Of America And The National
Council Of Youth Sports Were Allowed
Direct Access To FBI Files.
PROTECT Act of 2003
Pilot Program Was Later Extended But
Most Nonprofit Organizations Access
FBI’s Triple I Database Through The
Official State Criminal History
Repository.

Aka Title VIII Of The Civil Rights Act Of
1868 And Designed Originally To
Protect Consumers From
Discrimination In Housing.
Fair Housing Act of 1968

Background Screening, Consumer
Reporting, Private Investigation,
Data Access, Data Use And
Consumer Protection Or Privacy
Laws.
State Specific or Industry Specific Laws

How Do Users of Consumer Reports
Satisfy Their FCRA Obligations?

What Must Users Of Consumer Reports Do?
Establish A Written Policy/ Procedure
Design Adverse Action Notice Requirements
Have A “Permissible Purpose”
Choose A Quality Screening Provider
Use Proper Consumer Disclosure/Authorization

What You Need to
Know About
Choosing a
Quality Screening
Provider

Be An Accredited Member Of
National Association Of
Professional Background
Screeners (NAPBS).
Your Screening Provider Must

Have FCRA
Certified
Personnel (Basic
Or Advanced).

Own, Operate, Or Control
Platforms, Technology, Products
And Data – More Than Just A
Sales Office.

Be Well-versed On Issues
Of Compliance, Products,
Data Availability, Screening
Programs.

Software Integrations And Technology
Be Recognized And Known As A
Service Provider For:
Screening Best Practices
Databases, Matching Technology, Compliance Filters
Research And Reporting
Federal And State Compliance
Custom Product Mixes And Options

A Quality Consumer Dispute Process In Place
Insider Tips
Ensure That Your Screening Company Has
Low Record of Litigation (or early resolution of litigation)
Strong History Of Effective Dispute Resolution
Insider TipsInsider Tips

Evaluating
Your
Obligations
Companies Who Use Consumer Reports
Have Specific Obligations To Ensure They Are
In Compliance With The Fair Credit Reporting
Act (FCRA), As Amended.

Consumer Disclosure & Authorization
Two Obligations That Will Be Discussed Today
Establishing Your Permissible Purpose

Establishing Your Permissible Purpose
The Reasons That
You Can Supply Or
Use A Consumer
Report

The Consumer Report Will Be
Used For Employment
Purposes, Including Hiring And
Promotion Decisions
You Have Established Your Permissible
Purpose If…

The Consumer Report
Has Been Supplied
With Written
Permission From The
Consumer
Purpose If…

The Consumer Report
Has Been Issued In
Response To A Valid
Subpoena/Court Order
Purpose If…

The Consumer Report Has Been
Conducted With Expressed
Permission From An Individual.
Purpose If…

• Consumer Credit Transaction
• Legitimate Business Need In Consumer Initiated
Transaction
• Insurance Underwriting
• Issuance Of Government Sponsored Travel
Charge Cards
• Government Licensing
• Child Support Agency Or Award Investigation
Purpose If… The Person Utilizing The Report
Uses It For One Of The
Following Reasons:

Using Proper Disclosure/Authorization

Your Written Disclosure/Authorization Form
Is Both “Clear And Conspicuous”.
Be Sure That

Your Disclosure And Authorization
Form Is In One Document
Be Sure That

Your Disclosure And
Authorization Form Is A “Stand-
alone” And “Separate”
Document (I.E. Separate From
Application)
Be Sure That

Your Disclosure And Authorization
Form Is Able To Extend For
Duration Of Employment
Be Sure That

ADVERSE
ACTION

Be Sure To Know What The FCRA Says About
Adverse Action

There Are Different
Requirements For
Different
Types Of Consumer
Reports

The FCRA Is Designed To Protect
Consumers From Inaccurate Or Out-of-
date Information, Identity Theft, And Other
Situations

Adverse Action Process
There Is A One Step Tenant
Screening Process
There Is A Two Step Process For
Tenant And Volunteer Screening

Copy Of Report Decision
Summary Of Rights
How To Dispute
Step One In The Employment And Volunteer
Screening Adverse Action Process
Pre-adverse Action Notice

Notice Of Company
Decision
Screening Firm Address
And Phone
In Tenant Screening Adverse Action
Process
In The Employment And Volunteer
Screening Adverse Action Process
Step One
Step Two
Post-adverse Action Notice
Statement That Firm Did Not
Make Decision
Notice Of Right To Dispute
Within 60 Days And Right To
One (1) Free Annual Copy
Of Report

Designing Your
Adverse Action
Process

A Substantive Conversation With
The Consumer
Keys To Designing This Process:
Review Of Any Disputed Items
Individualized Assessment

56
Dispose of
Records
Properly

Take Away Points
57
• Understand The FCRA Requirements
• Understand What Qualifies A Background Screening
Program
• How Do You Satisfy FCRA Obligations
• How Do You Choose A Background Screening
Provider
• How Do You Establish Permissible Purpose
• How Do You Design An Adverse Action Program
• How Do You Dispose Of Records

Coming Up Next…
Using the Right Records in the Right Ways
1.800.600.8999 www.trak-1.com
Contact Nancy Roberts directly or talk with Trak-1’s FCRA
certified screening professionals and begin – Ruling In The
Right People!
58

Background Screening: Transforming Your Business Decisions Part 1

Recomendados

Recomendados

Mais conteúdo relacionado

Último

Último (6)

Destaque

Destaque (20)

Background Screening: Transforming Your Business Decisions Part 1