Fair Credit Reporting Act Overview
This document is intended as a general overview of the requirements of the Fair Credit Reporting Act ("FCRA"). Although the Act applies to many different situations, this document is limited to requirements of the Act with respect to employment. The Fair Credit Reporting Act, 15 U.S.C. 1681-1681u, regulates both "consumer reports" and "investigative consumer reports" in the employment context. Recent amendments to this law took effect on September 30,1997; these amendments create new obligations for employers and prospective employers who obtain and use these types of reports. While it is legal to utilize these types of reports in the employment context,it is important that employers comply with all relevant provisions of the Act, as well as any applicable state laws.

What are "Consumer Reports" ?
A consumer report is any 'written,oral or other communication of any information by a consumer reporting agency bearing on a consumer's credit standing,credit capacity,character,general reputation,personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumers eligibility for employment purposes." This is a broad definition which potentially includes any type of information furnished to an employer by a consumer reporting agency (such as backgroundchecks.com). Typical examples of consumer reports include DMV reprts,criminal background reports or credit checks, when this information is supplied by a consumer reporting agency.

What are the penalties for Non Compliance with the Act?
Penalties for non-compliance with the FCRA include actual damages,compensatory damages,punitive damages and other fee's. Also any person knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined udner Title 18 of the U.S. code,imprisoned for not more than two years, or both. If you would like more information on the Fair Credit Reporting Act visit the Federal Trade Commisson's website at www.ftc.gov