FCRA and FACT Act Updates

If you are pulling Credit Reports, below is information to be aware of. Should you have any questions, please don’t hesitate to give us a call.

FCRA Penalties:
Two casinos denied consumers jobs based on their credit reports, without informing them of their rights, under the Fair Credit Reporting Act (FCRA), according to the Federal Trade Commission agreed to pay $325,000 in civil penalties and are barred from future FCRA violations. In this case, according to the FTC’s complaint, Las Vegas-based Imperial Palace, Inc. (d/b/a Imperial Palace Casino) and Biloxi-based Imperial Palace of Mississippi, Inc., ask job applicants to sign a release form authorizing the defendants to obtain the applicants’ credit reports, then review each credit report and use a “Background Form” to rate the applicant as either “Poor,” “Fair,” or “Good.” Based on this rating, the applicant then is recommended as “Favorable” or “Unfavorable.” The FTC alleges that, in many cases, the defendants’ decision not to hire a particular applicant was based wholly or partly on information contained in his or her credit report – the FCRA defines this practice as “adverse action” against the applicant.

The FACT Act – What it Means to You:
Mortgage lenders, brokers, banks, credit unions as well as credit agencies are required to send consumers a letter every time a credit report is generated. For employers, FCRA requires that before taking adverse action against a current employee or job applicant based on information in the individual’s credit report, the employer must give that individual a copy of the report and a written description of his or her FCRA rights. After it takes adverse action, the employer must provide the consumer: (1) notice of the action taken; (2) the name, address, and phone number of the credit bureau from which the report was obtained; (3) a statement that the credit bureau did not make the decision to take the adverse action and cannot provide specific reasons why it was taken; (4) notice of the consumer’s right to obtain a free copy of his or her credit report within 60 days; and (5) notice of the consumer’s right to dispute the accuracy of the information in his or her credit report with a credit bureau.


Have a safe Memorial Weekend and take time to give thanks to those serving our Great Nation and those who gave ALL!

Your Argus-Search Team