Resource Center

Credit Reports and the FCRA

Question: If I’m not running credit reports, does the Fair Credit Reporting Act still apply? 

Response & Analysis:

Yes. A credit report is only one of several checks that fall under the definition of a “consumer report.” The Fair Credit Reporting Act (“FCRA”) applies anytime a company procures a “consumer report” on an applicant or employee. Section 603(d) of the FCRA defines a consumer report as:

“any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for...employment.” Pursuant to Federal Trade Commission (“FTC”) opinions, independent contractors fall within the definition of “employment.”

In addition to a credit report, this definition of a consumer report would cover many other types of background information, such as criminal history checks, employment verifications and license checks. So even if you choose not to run a credit report on an applicant or an employee, many of the other background checks you run – including just public record information – will fall under the definition of a “consumer report.” Thus, you are subject to the requirements of the FCRA even if you do not run credit reports.

All Rights Reserved © 2017 Business Information Group, Inc.
This document and/or presentation is provided as a service to our customers. Its contents are designed solely for informational purposes, and should not be inferred or understood as legal advice or binding case law, nor shared with any third parties. Persons in need of legal assistance should seek the advice of competent legal counsel. Although care has been taken in preparation of these materials, we cannot guarantee the accuracy, currency or completeness of the information contained within it. Anyone using this information does so at his or her own risk.

Even our RFP PROCESS is state-of-the-art.

Take a look

What our clients are saying

We cannot express enough how much we have enjoyed working with BIG! It has really benefitted our processing and ease of doing business!

Licensing and Registration Manager
Investment and Insurance Company

I enjoy collaborating with BIG, and know that if I have to reach out with a question/concern, a positive attitude with a willingness to find resolve is on the other side of an email or a phone call.

Human Resources Administrator
Global Financial Services Firm

You have been the most professional and most helpful business partner that I have ever been associated with — always there to assist us and with rapid turnaround times.

Principal Consultant
Major Professional Services Network

I am confident whenever we add a product with your company that I will have a good experience.

Division Manager
Insurance and Financial Services Agency

We have received superior service and we know this is what you and your team strive for. We are grateful for the dedication, level of professionalism and effort shown.

Large Insurance Agency

You are leaving

Ok, Continue Cancel