In This Issue:

- Summary Of FCRA Obligations On Employers That Use Consumer Reports For Employment Purposes

- Potential Liability For FCRA Non-Compliance And The Growing Wave Of FCRA Class Action

- FACTA’s Plain Language Exempts Reports Related To Certain Employer Investigations From Most FCRA Requirements

- Key Decisions Since Enactment Of The FACTA

- Whether An Employer’s “Investigation” Is For A Qualifying Purpose

- Whether An Employer’s Additional Motives For Investigating Compliance Affect FACTA’s Application

- With Whom The Employer May Share The Report

- Conclusion

- Excerpt from Summary OF FCRA Obligations On Employers That Use Consumer Reports FOR Employment Purposes:

A brief background of the FCRA’s general requirements of employers is necessary to understand the potential import of the FACTA. More than 40 years ago, Congress enacted the FCRA. despite the use of the term “credit” in its name, the FCRA does far more than regulate the exchange of consumer credit information between the nationwide credit bureaus (e.g., experian, equifax and Transunion) and creditors in connection with mortgage lending and other consumer credit transactions (e.g., credit reports). instead, the FCRA also regulates the exchange of consumer information between employers that use, and CRAs that provide, screening reports with other types of information, including criminal records. Generally speaking, employers must comply with the FCRA when they order virtually any type of report from a CRA, including reports derived from public record sources (e.g., criminal and motor vehicle records checks).