Denying Applicants

When a company uses information contained in a consumer report, for employment or housing purposes from a provider such as AmeriCheckUSA, Equifax, TransUnion, Experian, etc. and disqualifies an applicant by denying their ability to be employed or obtain housing, there are several federal laws that must be followed; such as:

• Right to know: Hiring companies, residential communities or landlords that use background reports must disclose what information to going to be obtained to evaluate applicants.
• Right to consent: Hiring companies, residential communities or landlords that use background reports, must get a signed authorization from each applicant, allowing a background report to be used.
• Right to a copy: Applicants who were denied employment or housing due to information contained in a background check, must be provided with an explanation of why they were denied, and a copy of the background check that was used to make the decision.•
• Right to dispute: Applicants who were denied employment or housing due to information contained in a background check, must be given a timeframe to dispute any errors or inaccurate or incomplete information in their background check.
• Right to Rights: Applicants who were denied employment or housing due to information contained in a background check, must be given a copy of their “Summary of Consumer Rights under the Fair Credit Reporting Act (FCRA)”

It is important to note that employers are generally allowed to use credit reports in the hiring process, unless prohibited by state law. Some states prohibit employers from using credit reports for certain types of jobs, such as low-wage jobs or jobs that do not require access to money.