FCRA FCRA Employment Screening & Background Checks 2 — Questions and Answers
Question 1: Which FCRA provision requires employers to certify to the CRA the specific permissible purpose for which they are ordering a consumer report?
- §604(b) employer certification (Correct answer)
- §609 consumer disclosure
- §611 dispute reinvestigation
- §616 civil liability
Correct answer: §604(b) employer certification
FCRA §604(b) requires employers to certify to CRAs the permissible purpose (employment) and that they will comply with all adverse action requirements.
Question 2: After an employer sends the final adverse action notice, which pieces of information must it include under the FCRA?
- Name/address/phone of the CRA, statement that CRA did not make the decision, and notice of the right to dispute (Correct answer)
- Only the reason for denial
- The full consumer report used in the decision
- A copy of the employer's adverse action policy
Correct answer: Name/address/phone of the CRA, statement that CRA did not make the decision, and notice of the right to dispute
The final adverse action notice must identify the CRA, clarify the CRA did not make the hiring decision, and inform the consumer of the right to dispute inaccurate information.
Question 3: Under the FCRA, which salary threshold historically exempted certain executive-level positions from the 7-year reporting limitation for adverse information?
- Annual salary reasonably expected to exceed $75,000 (Correct answer)
- Annual salary exceeding $50,000
- Annual salary exceeding $100,000
- No salary exemption exists under the FCRA
Correct answer: Annual salary reasonably expected to exceed $75,000
FCRA §605(b) exempts jobs with an annual salary reasonably expected to exceed $75,000 from the 7-year limitation on reporting most adverse items.
Question 4: A consumer disputes the accuracy of information in a background check after being denied a job. Which entity bears primary responsibility for reinvestigating the disputed item?
- The CRA that issued the report (Correct answer)
- The employer who ordered the report
- The original data furnisher only
- The Equal Employment Opportunity Commission
Correct answer: The CRA that issued the report
Under FCRA §611, the CRA that produced the report is primarily responsible for reinvestigating consumer disputes within 30 days of receiving the dispute.
Question 5: Which FCRA section specifically defines 'investigative consumer report' and distinguishes it from a standard consumer report?
- §603(e) (Correct answer)
- §604(a)
- §607(a)
- §612
Correct answer: §603(e)
FCRA §603(e) defines an investigative consumer report as one based in whole or part on personal interviews about the consumer's character, general reputation, or mode of living.
Question 6: When a CRA provides an employment consumer report, it must maintain strict procedures to ensure maximum possible accuracy. Failure to do so exposes the CRA to liability under which FCRA section?
- §607(b) (Correct answer)
- §604(c)
- §615(a)
- §623(b)
Correct answer: §607(b)
FCRA §607(b) imposes a duty on CRAs to follow reasonable procedures to assure maximum possible accuracy of information in consumer reports.
FCRA FCRA Employment Screening & Background Checks 2
Which FCRA provision requires employers to certify to the CRA the specific permissible purpose for which they are ordering a consumer report?