Within the last year, there have been many breaches in security in the background screening industry.  Our vendor, Equifax, has advised us to follow their new requirements, as well as new FCRA Regulations.  These changes are industry wide.  Below is an outline of the regulations, moving forward.  If you have any questions, please don't hesitate to contact us.

Permissible Purpose.  A Permissible Purpose for ordering a Credit Report includes one of the following:
1) The granting of credit
2) The collection of a debt
3) The underwriting of insurance
4) Employment purposes
5) For issuing a license as required by some government agencies
6) For a legitimate business transaction between a business and a consumer that is initiated by the consumer

You DO NOT have the authority to access consumer credit records unless:
· You have the party’s signed consent and release to request information on their behalf; or
· You have a signed agreement to enter into business negotiations with the person; or
· You have a signed judgment from a Court of Law against the person whose credit you are checking.

Per FCRA  regulations, you are required to obtain a signed Release Form from your applicant(s) prior to retrieving information about them. It is mandatory to keep the release form on file for at least two years.  Argus-Search will also need the signed release form faxed to us.

Businesses now barred from accessing credit reports: View the List
Regretfully, if your type of business is on this list, we can no longer provide you Credit Reports per Equifax, our vendor.  You may still be able to pull a Bankruptcy, Liens & Judgment Report; if you are not set up for this report and would like access, just email us at support@argus-search.com.

New Requirements in becoming an Argus-Search client for pulling Credit Reports:
- Complete an End User Agreement, sign and fax the 1st page to 866-212-2187
- Provide a copy of your Business Lease, via fax
Provide a copy of your Principal/Owner's Driver's License, via fax
Provide a copy of your Business License via fax, if available; otherwise, Articles of Incorporation, Articles of Partnership, Federal or State Tax ID Certificate
Provide a copy of your Principal/Owner's Credit Report
- Schedule with Argus-Search for a Third Party On-Site visit by an Equifax Approved Service. (Global Compliance Service)

For Every Credit Report Ordered:
- Have a Permissible Purpose
- Ensure an applicant-signed Employment Release Form or Tenant Release Form is faxed to 866-212-2187
- Advise applicant whether or not approved; you may use a sample
Acceptance and/or Declination letters
Consumer Bill of Rights to be given to ALL applicants with their credit report and a declination letter (should you night hire this person due to their credit)

Notice Requirements in Connection with Adverse Actions
In the event an employer plans to take any adverse action based wholly or in part upon information contained in a consumer report, the FCRA requires the employer to make certain notifications to the applicant or employee.

For employment purposes, an "adverse action" means either: 1) a denial of employment; or 2) any other decision for employment purposes that adversely affects any current or prospective employee. The FCRA requires an employer to provide a copy of the consumer report to the applicant or employee and provide the applicant or employee with a copy of his/her rights under the FCRA (the "Summary of Rights Under the FCRA") before taking adverse action based upon information contained in the consumer report.

After the employer takes adverse action, the employer must provide the applicant or employee with notice of the following:

1.       The name, address, and telephone number of the consumer reporting agency issuing the report

2.       A statement that the consumer reporting agency did not make the adverse decision and is not able to explain why the adverse decision was made

3.       A statement regarding the applicant or employee's right to obtain a free disclosure of the applicant or employee's file from the agency if the applicant or employee requests the report within 60 days of notice of the adverse action

4.       A statement regarding the applicant or employee's right to dispute directly with the consumer reporting agency the accuracy or completeness of any information provided by the agency.


We anticipate the process to become even more stringent due to the Identity crisis we've seen within our industry.  Should you have any questions, please don't hesitate to give us a call. 




Your Argus Team