CODESP Background and Reference Investigations 2

Question 1

Under the Fair Credit Reporting Act (FCRA), how far back can a consumer reporting agency report bankruptcies?

Accepted Answer

10 years

Answer

7 years

Answer

15 years

Answer

Indefinitely

Question 2

Which of the following best describes a 'release of information' form used in background investigations?

Accepted Answer

A signed authorization allowing employers to obtain personal information from third parties

Answer

A court order requiring disclosure of criminal records

Answer

A document waiving all liability for the investigator

Answer

An agency agreement between two employers sharing candidate data

Question 3

When verifying a candidate's prior employment, what is the most appropriate action if a previous employer only confirms dates of employment and job title?

Accepted Answer

Accept the information provided and document it accurately

Answer

Reject the candidate due to uncooperative references

Answer

Attempt to obtain the information through a third-party records broker without consent

Answer

Require the candidate to resubmit the application

Question 4

Which federal law prohibits employers from using background check information to discriminate based on national origin?

Accepted Answer

Title VII of the Civil Rights Act of 1964

Answer

The Privacy Act of 1974

Answer

The Employee Polygraph Protection Act

Answer

The Occupational Safety and Health Act

Question 5

In the context of reference checks, a structured reference interview is preferred because it:

Accepted Answer

Provides consistent, job-related questions asked of all references

Answer

Allows the investigator to ask any question that comes to mind

Answer

Enables the investigator to gather personal opinions about the candidate's lifestyle

Answer

Reduces the time spent on each reference call

Question 6

What does the term 'adverse action' mean in the context of FCRA and background investigations?

Accepted Answer

Any action taken against a candidate that negatively affects their employment opportunity based on a consumer report

Answer

A criminal conviction discovered during the investigation

Answer

A reference who refuses to provide information

Answer

A discrepancy found between a resume and verified records

Question 7

Which of the following is an example of a red flag that might warrant additional scrutiny during a background investigation?

Accepted Answer

Unexplained gaps in employment history that the candidate cannot account for

Answer

A candidate who has worked at many companies over a 20-year career

Answer

A candidate who has lived in multiple states

Answer

References who are former supervisors rather than coworkers