By definition, background screening reports are consumer reports under the Fair Credit Reporting Act (FCRA) when they serve as a factor in determining a person’s eligibility for housing, employment, credit, insurance, or other purposes. Information often includes credit worthiness, standing and capacity; as well as character, reputation, personal characteristics and mode of living.
Background screening agencies that do not consider themselves to be “consumer reporting agencies” should think again if their work includes the release of information included on a consumer report. As such, it is important for tenant background screening companies to understand and adhere to laws determined by the FCRA. Some requirements include following reasonable procedures to assure accuracy, obtaining certification from clients, providing clients with information about the FCRA, and honoring the rights of applicants and tenants.
