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.
Sincerely,
Your
Argus Team