The subject of a hearing by the House Financial Services Committee on February 26, a draft legislation to amend the Fair Credit Reporting Act (FCRA) could have a significant impact on the information available to employers from consumer reporting agencies for background screening purposes. Most of the hearing, “Who’s Keeping Score? Holding Credit Bureaus Accountable and Repairing a Broken System,” focused on testimony from the CEOs of Equifax, Experian and TransUnion. It was noteworthy for employers 1. Because members of Congress from both sides of the aisle expressed support for changes to the FCRA and 2. The proposed draft legislation will have a direct effect on employers. The bill would restrict the use of credit information for employment purposes nationwide and there would be a reduction in the time period for which consumer reporting agencies are authorized to report information in consumer reports.
