Fair Credit Reporting Act Compliance

FCRA Compliance

Consumer reports are governed by the Fair Credit Reporting Act (FCRA), which Congress passed in 1970 to regulate consumer information. The FCRA has been amended three times between its inception and July 2011: in 1997, again in 2003 by the Fair and Accurate Credit Transactions Act (FACT Act), and most recently in 2010 by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). These amendments added a number of disclosure, notice, and authorization requirements for employers.

Summary of Avesta’s Fair Credit Reporting Act Compliance:

  1. Employer discloses in writing to the candidate/employee that he/she will be the subject of a consumer report as a part of the employment selection process.
  2. Employer obtains signed authorization for preparation of a background report from candidate/employee.
  3. Employer provides information about the candidate to Avesta through CandidateCare and requests background screening.
  4. Avesta conducts the background checks as requested by the employer and prepares the background report.
  5. Avesta provides the background report to the employer and, if requested by the candidate/employee, provides a copy to the candidate/employee.
  6. Employer reviews completed background report and determines if any information will adversely impact the employment decision. If no adverse impact results from information in the background report, the employer will proceed with other steps in the employment process.
  7. If employer is considering an adverse employment action based on the information provided in the consumer report, the employer must:
    1. Notify the candidate/employee;
    2. Provide a copy of the background report; and
    3. Provide the document, “A Summary of Your Rights under the Fair Credit Reporting Act.”
      (This process is called “Pre-Adverse Action”)
  8. Candidate/employee contacts Avesta if he/she disputes any information in the background report.
  9. Avesta re-investigates any disputed items of information and issues updated report to employer and candidate/employee.
  10. Employer reviews updated report and makes final employment decision. If the employment decision is adverse, a notice of adverse action is sent to the candidate/employee.
    (This process is called “Final Adverse Action”)


To request Avesta’s full Fair Credit Reporting Act Compliance Kit, please contact Avesta at (866)342-4280.