New FTC Business Guidance for Employment Background Screening Companies Helps With FCRA Compliance

The Federal Trade Commission has created new guidance for businesses aimed at giving employment background screening companies information on how to comply with the Fair Credit Reporting Act (FCRA).

The guidance helps companies understand when their work defines them as a consumer reporting agency under the FCRA. Consumer reporting agencies must meet a number of obligations outlined in the FCRA, including investigating consumer disputes and correcting inaccurate information.

The FTC’s guidance outlines the requirements that employment background screening companies face under FCRA, including their requirements in dealing with their clients and how they interact with consumers.

The guidance can be found on the FTC’s website.

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