FCRA Compliance Checklist - Clarifacts

1 Clarifacts INC. 323 WEST ROOSEVELT STREET, SUITE 101, PHOENIX, AZ 85003 PHONE: (602) 258-8858 TOLL FREE: (800) 318-0553 FAX: (602) 258-7177 BACKGROUND CHECKS | DRUG TESTING | I-9/E-VERIFY Step 1: Employer Certification I certified, in writing to the Consumer Reporting Agency (CRA), that I will: Use the information for employment purposes only, which is a permissible purpose under the FCRA. Not use the information in violation of any federal or state equal opportunity law. Obtain the necessary disclosure and authorization as required by the FCRA. Give the appropriate notices in the event an adverse action is taken against an applicant based on any of the findings of the Consumer Report. Give any additional information required by law if an Investigative Consumer Report is needed. Step 2: Disclosure and Authorization In stand-alone forms that are separate from the employment application, I have: Provided the applicant with a clear and conspicuous written disclosure that a background check report may be requested.

2 Obtained the applicant s written authorization that they are aware a Consumer Report will be done. Step 3: Pre-Adverse Action I don t want to hire the applicant based off of their background check report results. I have sent a pre-adverse action notice letter to the applicant, with the following documents: A copy of the Consumer Report A copy of A Summary of Your Rights Under the Fair Credit Reporting Act Step 4: Adverse Action I have given the applicant a reasonable amount of time to dispute the results of the Consumer Report. I have sent the applicant an adverse action letter which includes: The name, address and phone number of the CRA. A statement that explains that the CRA had no role in the hiring decision and cannot explain why the decision was made. A statement letting the applicant know they have the right to dispute any information directly with the CRA. A statement letting the applicant know they can request additional free copies of the Consumer Report from the CRA within 60 days.

3 Along with the Adverse Action letter, I have also sent the applicant: An additional copy of A Summary of Your Rights Under the Fair Credit Reporting Act FCRA Compliance Checklist