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FDIC Background Check 21andBackgroundScreening
User Guide
SecurTest,Inc. 600 Grand Panama Blvd., Suite 202
Panama City Beach, FL 32407 (800) 445-8001
[email protected] www.securtest.com
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Table of Contents SecurTest Website Login Instructions
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Saving Payment Information to Your Account
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Ordering a Background Check 21 or General HR Background Reports
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Optional Additional Searches
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Viewing, Printing or Saving Reports
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Using Your Background Report
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iReviewNow - Missing Piece of the Background Screening Puzzle
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Best Practices
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FDIC and FCRA Information Grading Criteria
20/31 29
Ordering MVR (Driving), Employment References and Education Verifications
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Ordering Drug Tests 37
Background Checks - What Employers Need to Know 38
© 2018 SecurTest, Inc. All rights reserved. SecurHomeland, Accuratized, SecurTest, and Getting the Most Accurate Information with Our Exclusive 360 º Degree Process are registered trademarks of SecurTest, Inc. iReviewNow United States Patents 7,979,908, 8,646,101 and 9,183,363. iReviewNow is the registered trademark of iReviewNow., LLC.
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This guide, forms, and other materials from SecurTest have been prepared for informational purposes only and are not legal advice. This information is not intended to create and receipt of it does not constitute an attorney client relationship. Clients should not act upon this information without seeking professional legal counsel. Sample documents should NOT be construed as legal advice, guidance or counsel. Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state law. SecurTest, Inc. expressly disclaims any warranties or responsibility or damages associated with or arising out of information provided. Employers seeking credit reports must provide additional notices pursuant to state law.
SecurTest Website Login Instructions
Important Notice: You will receive a User ID and Password via email for the SecurTest website to order and view background reports. Passwords can be changed after your initial login, but should be changed every 30 days for security purposes. Please maintain the security of your User ID and password.
PII (personal identifiable information) such as SSNs or DOB will never be transmitted through email or sent in background reports.
1. Go to www.securtest.com
2. Click “See Reports” in the top right corner.
Enter your case-sensitive User ID and password on the login page. When finished, click “Login.”
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3. You can create a password of your choice by selecting “Change Password” under “User Information” at the bottom of the home page
Please Note: If you have issues with your User ID and/or Password, please email [email protected] or call 1-800-445-8001 (International Toll Free) for assistance.
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Saving Payment Information to Your Account
If you will be making multiple orders, you may wish to save your payment information before submitting requests to save time in the future.
NOTE: WE ARE UNABLE TO PROCESS AMERICAN EXPRESS THROUGH THE WEBSITE. IF YOU NEED TO SET UP ALTERNATE PAYMENT METHODS, PLEASE CONTACT A MEMBER OF OUR BACKGROUND CHECK 21 TEAM.
1. To save payment information to your account, first go to the “Admin” tab
2. Next, select the “Account Maintenance” tab, followed by “Edit Credit Card on File.” You will be taken to the Credit Card Maintenance page which will let you save the information.
3. If you do not wish to save your payment information at this time, you can do so while ordering reports.
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Ordering a Background Check 21 or General HR Background Report
1. Before ordering a background report, be sure the candidate has completed and signed the Disclosure and Authorization form, as this MUST be uploaded when ordering.
2. You will need the following information from the candidate to submit a background request. A. Name
B. Address C. Date of Birth D. Social Security Number (or government issued ID if the candidate does not have a
SSN) E. Contact Telephone Number (preferably a cell phone number) F. Email Address (THIS IS IMPORTANT) G. Disclosure and Authorization Form (“iReviewNow Agreement”) (completed and
signed by the candidate)
3. Save the completed forms as PDFs (.pdf) or images and upload them through the Document Management feature (described below). PDF files help expedite your request, as other delivery methods may delay processing the report.
4. Log in to the SecurTest website and click “Request” near the top of the page to order
reports.
5. Select Background Check 21 A, B, or C, Background Check 21C with MVR, or Non Background Check 21 Check – Other Candidates depending on your company’s requirements.
The Non Background Check 21 Check package is for candidates, employees, applicants, or vendors that you need to screen for hiring or placement purposes that do not require an FDIC regulated background check.
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6. Enter the candidate’s information in the appropriate fields.
7. Alias (AKA) Information Enter maiden names or other aliases the candidate has provided on the Consumer Authorization form into the “Alias (AKA) Information” section. Leave these fields blank if you do not know of any alternate names. Click the Green
button to enter additional names.
8. Additional Information **Important** It is extremely important that the candidate’s phone # and email are entered in
the “Additional Information” section as they will allow us to notify the candidate that his or her report is ready for viewing. Free email addresses can be obtained from providers such as www.gmail.com, www.yahoo.com, and many others. Please explain the importance of providing this information as it is part of the iReviewNow Authorization process.
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9. Click “Continue”
10.Uploading the Disclosure and Authorization Form
a. The Disclosure and Authorization Form must be submitted before any research can be conducted for a candidate. This form gives us the candidate’s permission to conduct a Background Check.
b. Click “Click Here to Upload Files Associated with this Applicant” under “Document Management”
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c. This will take you to the File Upload page. Click “Browse” to locate the candidate’s Authorization on your computer or server.
d. Once you have attached the Authorization form, enter a brief Description (i.e. “John Smith’s Consumer Authorization”)
e. Click “Submit” to attach the form directly to the candidate’s report 11. If you already have payment information saved, you just have to select “Use credit card on file” and click “Agree and Submit Order.”
12. If you do not have a credit card on file, or if you would like to pay using a card other than the one saved to your account, you can enter payment information by selecting “Use alternate credit card for this payment.” 13. If you have been approved by SecurTest for monthly invoicing, you must have submitted a Purchase Order and PO Number.
Optional Additional Searches
If you are interested in ordering additional searches such as motor vehicle records, education verifications, reference checks, or credit reports, please contact SecurTest at 1-800-445-8001 as these are not standard for the Background Check 21 Packages.
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Viewing and Printing Reports
1. Pending Reports: After you submit a request, you can view a summary of reports that have been ordered, but are not yet complete, using the “Status” tab near the top right of the screen. NOTE: Completed reports will not show up in this feature. It will only show you reports that are currently being processed.
2. Completed Reports: After logging into the website, completed reports may be viewed by utilizing the “Results” tab near the top of the screen. If you know the name or other identifiers of an individual candidate, you can also use the “Results Quick-Search” on the left.
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3. Under the “Results” tab you will see a list of reports that have been added to the website for your review under the “View Results” tab.
4. Click “View” on the right side of the screen to view and/or print the full report in a PDF
format. You may also print the background report by selecting the box to the left of the Name and then clicking “Print All Selected” below the list results.
NOTE: POPUP BLOCKERS WILL SOMETIMES PREVENT OPENING REPORTS. BE SURE <securtest.secure-screening.net> IS ALLOWED TO OPEN POPUPS
Reminder: Reports will not contain full Social Security Numbers or Dates of Birth.
5. Click on the Paper Clip Icon to view and/or print any records or documents that have been uploaded for your review.
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6. If you are unable to view reports using the “View” button, you can click the [+] next to
the candidate’s name to view the entire report as plaintext. 7. Once you have reviewed the report and no longer need to view it, you can click on the
box to the left of the candidate’s name and then select “Move Selected Report to Archives.” This will remove the report from the main screen to the archived results database.
NOTE: ARCHIVED REPORTS CAN NO LONGER BE VIEWED BY ANY USERS ON THE WEBSITE. IF YOU ARCHIVE A REPORT BY MISTAKE, PLEASE CONTACT US TO RE-POST IT TO THE WEBSITE.
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Using Your Background Report Results
Please use the following steps and guidelines upon receiving the results of a background check.
1. Pass or Eligible Results:
• If a candidate receives a pass or eligible result for a report, you do not need to take any further action. Pass and Eligible are based on FDIC regulations. Though a person may be ineligible to work in an FDIC facility or bank, you may still hire the candidate for other positions. Remember, a Background Check 21 Report is not to be used for Employment Purposes, which is regulated by the FCRA and state laws.
2. HR Review Results:
• Candidates with a status of HR Review meet the criteria established by Wells Fargo for the specific package ordered; HOWEVER, information was located during the course of research which may be of concern for individuals working in sensitive areas
• We recommend that HR Review reports be reviewed by your company to determine if adverse action should be taken against the candidate based on the information contained in the report
• If you determine that a candidate on HR Review is to be deemed eligible (updated to a green status), you can email your decision to [email protected].
3. Fail/Ineligible or HR Review Results:
• If a candidate receives a derogatory, adverse, or potentially adverse result from a background check that negatively impacts your hiring, retention, or access control decisions, please follow the below Pre-Adverse Action and Post-Adverse Action sections as well as the iReviewNow section to ensure compliance with the SecurTest User Agreement, FCRA, EEOC, and other state and federal laws. Examples of the following action letters can be found under the “Results” tab after you login to the SecurTest website.
4. Pre-Adverse Action:
• A copy of the background report, a pre-adverse action letter, and a copy of FCRA rights must be transmitted to the candidate, along with various state notices or documentation. Please select one of the following options to complete this step:
Option 1: SecurTest can transmit the pre-adverse action information through
iReviewNow only where the candidate provides an email address for an additional fee.
Option 2: You may mail all pre-adverse information or call the candidate to have
them return to your HR department to receive a hand-delivered copy.
B. Adverse Action: • Once a reasonable amount of time has expired (typically 5 days), a post-adverse
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action letter must be transmitted to the candidate.
You must either mail or email all post-adverse information or call the candidate to have them return to your HR department to receive a hand-delivered copy.
4. Generating Pre and Post-Adverse Action Letters
• The SecurTest Website can generate pre and post-adverse action letters based on your account set-up. Your legal counsel should review these letters. Please use the following steps to generate action letters:
Pre-Adverse Action Letters
A. Log-in to the SecurTest website and click “Results” in the top right corner.
B. Find the candidate’s name and click on the Adverse Action Icon on the right side of the page.
C. Click “Self-Service Adverse Action Letter Generation” to generate Adverse Action letters and mandated documents required by the FCRA. Note: Do not select “Request Adverse Action Letter Service” unless this has been added to your contract with SecurTest.
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D. Select “Pre-Adverse Action Letter” and “Submit.”
E. Scroll to the bottom of the page and select each of the following attachments:
• “Include a Copy of the Results Reports” • “Include the FCRA Summary of Rights” • “iReviewNow” • And any additional required State notices or forms.
You will also have the option to receive an email reminder to send the Post-Adverse Action Letter. Please be sure to list the correct email address.
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F. When you are finished, click “Generate” to create the Pre-Adverse Action Letter and the Attachments to be hand delivered or mailed to the candidate. We recommend a return receipt if the documents are mailed to ensure delivery.
Post-Adverse Action Letters
G. Please use the following steps when you have decided to not hire or retain a candidate based on the background check 21 results, review of the iReviewNow information from the candidate, and your individualized assessment.
• Follow steps A-C above. On step D, click “Adverse Action Letter” and then
“Submit.” This will generate the Post-Adverse Action letter to be hand delivered or mailed to the candidate.
17 iReviewNow – The Missing Piece of the Background Screening Puzzle
New FCRA and EEOC mandates along with other federal and state laws or regulations make using iReviewNow a critical aspect of your background screening program. iReviewNow is the only patented background screening solution that will help ensure you are compliant with these rules. The following section will help you understand iReviewNow, how to use it, and how to use the iReviewNow Individual Assessment Feature.
TRANSPARENT iReviewNow is the only system that allows candidates to see their report (pass or fail) at the same time as you. This step allows candidates the crucial opportunity to dispute any inaccuracies before adverse hiring decisions are made or provide context and rehabilitation history in accordance with the EEOC mandates.
ACCURATE When background reports identify adverse or potentially derogatory information, candidates are able to see exactly what has been found as our system notifies them through text messages and emails to review their results. They can then dispute any inaccuracies or misidentification of criminal records securely online at ireviewnow.com/go
Reporting mistakes often lead to a candidate being passed over for a job in favor of other candidates. These unfair and now illegal hiring practices have led to the new EEOC and FCRA guidelines and multi-million dollar lawsuits against employers and their background screening providers.
The iReviewNow process is interactive with candidates as they are able to add details in the report to explain any potentially negative information. This allows the candidate to give context to their past by telling their side of the story and demonstrating what self- rehabilitative steps they have taken since the event occurred.
RELIABLE When you have the 360-degree view of the candidate, you can make fully informed hiring decisions. This mitigates, if not eliminates, your risk of making discriminatory hiring decisions and negligently hiring unfit candidates that do not meet your criteria. SecurTest's quality background screening programs, with Accuratized® reporting powered by iReviewNow, protect candidates' legal rights and ensure employers' hiring practices comply fully within EEOC and FCRA regulations.
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HOW IREVIEWNOW WORKS The iReviewNow Agreement found on the Consumer Authorization form is filled out by the candidate prior to the background check request. After the request has been processed, a copy of the report is made available to the candidate at iReviewNow.com and he or she will receive a text message, email notification, or will be notified by you that the report is complete. The candidate can then login to the SecurTest website with a unique User ID and password to review the report and answer the user-friendly iReviewNow questions ensuring transparency, fairness, and accuracy. If he or she does not create an online login account, we will transmit a copy of the background report to the candidate’s provided email address. The report will not contain any PII information such as Social Security Numbers or Dates of Birth which mitigates misuse of the report or identity theft concerns.
If the candidate would like to dispute any item in the report, iReviewNow will instantly alert you and will instantly trigger our reinvestigation of the disputed item(s). Though the FCRA provides 30 days to complete the investigation, SecurTest finds this unacceptable as positions are usually filled during this period. Our average reinvestigation time is one business day which will allow you time to wait for our results before making any final decisions regarding the position. This will also help to eliminate claims of damages by the candidate. We will instantly transmit the reinvestigation results to the subject upon completion.
iReviewNow allows the subject to provide context for the adverse information. The EEOC guidelines expect employers to allow candidates to present themselves in the most favorable light. iReviewNow also allows the candidate or employee to provide what the EEOC and FCRA define as “self-rehabilitation” information and evidence. Candidates can explain the proactive steps taken to rehabilitate themselves since the derogatory event such as changing their behavior and improving their qualifications thus giving you a 360- degree view of the “whole person.” Though you have the final authority to determine the best and most qualified candidate for the position, you will have more than a stark black- and-white background report—you have additional information, often known only by the candidate.
Example: A person with a conviction for writing a bad check can explain the circumstances that resulted in the conviction. A person can tell you what he or she have done to improve themselves since the conviction such as completing or continuing their education, community service, or other positive behaviors that demonstrate their efforts toward rehabilitation. Candidates can upload documents that may help support their commentary.
Your applicants are often your existing customers and your best advocate in your community and beyond. We treat your applicants with respect and dignity and allow them to see their report at the same time as you. This ensures that candidates and employees continue to see your organization as being fair, transparent, and committed to reporting the highest standards. Clients that use iReviewNow are using the only patented solution that ensures compliance with state and federal laws, guidelines, and mandates. iReviewNow is the solution that protects your organizational brand by ensuring accuracy and transparency.
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IREVIEWNOW INDIVIDUALIZED ASSESSMENT TOOL
Part of the iReviewNow patent is our 360-degree Individualized Assessment Tool. Recent EEOC mandates require you to perform an individualized assessment of a candidate with adverse history (i.e. conviction records) to help prevent discrimination of protected groups. Our tool will help you evaluate the candidate and have supporting documentation for each hiring decision.
When an individualized assessment is necessary, you will be directed to http://www.ireviewnow.com/ireviewnowassessment or you may Click Here. This tool will help you evaluate each background report that contains negative, derogatory, or potentially derogatory information before making a final decision.
Best Practices
• Take reasonable steps to be consistent in your hiring, retention, and access decisions. • Establish policies and procedures that you and your legal counsel review on an annual
basis or more frequently as needed. • Follow the FCRA, EEOC and other federal and state laws and use iReviewNow, pursuant
to our agreement. • Assess your risk by position, level of supervision, and qualifications of each candidate. • Documentation is your best friend. Always document both hire and no-hire decisions. • Audit your internal procedures. • Audit SecurTest to ensure we are meeting your needs and following your procedures. • Communicate with your SecurTest Team, as we are always available to answer your
questions and exceed your expectations. • Call our Senior Executive Team, including our CEO, Steven C. Millwee, to ask questions.
Take advantage of our expertise and training. • Do not ignore your FCRA obligations as the law requires these steps to be followed.
20 FDIC Regulations
This guide and other materials from SecurTest have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute an attorney client relationship. Clients should not act upon this information without seeking professional legal counsel.
. Background Check 21 reports are regulated by Section 19 of the Federal Deposit Insurance Act (12 U.S.C. § 1829). See: https://www.fdic.gov/regulations/laws/rules/1000-2100.html https://www.fdic.gov/regulations/laws/rules/4000-9010.html https://www.fdic.gov/news/news/financial/2018/fil18042.html https://www.fdic.gov/regulations/laws/rules/5000-1300.html
FDIC STATEMENT OF POLICY FOR SECTION 19 OF THE FDI ACT
Section 19 of the Federal Deposit Insurance Act (12 U.S.C. § 1829) prohibits, without the prior written consent of the Federal Deposit Insurance Corporation (FDIC), a person convicted of any criminal offense involving dishonesty or breach of trust or money laundering (covered offenses), or who has agreed to enter into a pretrial diversion or similar program (program entry) in connection with a prosecution for such offense, from becoming or continuing as an institution-affiliated party, owning or controlling, directly or indirectly an insured depository institution (insured institution), or otherwise participating, directly or indirectly, in the conduct of the affairs of the insured institution. In addition, the law forbids an insured institution from permitting such a person to engage in any conduct or to continue any relationship prohibited by Section 19. It imposes a ten- year ban against the FDIC's consent for persons convicted of certain crimes enumerated in Title 18 of the United States Code, absent a motion by the FDIC and court approval.
Section 19 imposes a duty upon an insured institution to make a reasonable inquiry regarding an applicant's history, which consists of taking steps appropriate under the circumstances, consistent with applicable law, to avoid hiring or permitting participation in its affairs by a person who has a conviction or program entry for a covered offense. The FDIC believes that at a minimum, each insured institution should establish a screening process that provides the insured institution with information concerning any convictions or program entry pertaining to a job applicant. This would include, for example, the completion of a written employment application that requires a listing of all convictions and program entries. In the alternative, for the purposes of Section 19, an FDIC-supervised institution may extend a conditional offer of employment contingent on the completion of a background check satisfactory to the institution and to determine if the applicant is barred by Section 19. In such a case,
21 the job applicant may not work for or be employed by the insured institution until such time that the applicant is determined to not be barred under Section 19. The FDIC will look to the circumstances of each situation for FDIC-supervised institutions to determine whether the inquiry is reasonable.
Section 19 applies, by operation of law, as a statutory bar to participation absent the written consent of the FDIC. Upon notice of a conviction or program entry, an application must be filed seeking the FDIC's consent prior to the person's participation. The purpose of an application is to provide the applicant an opportunity to demonstrate that, notwithstanding the bar, a person is fit to participate in the conduct of the affairs of an insured institution without posing a risk to its safety and soundness or impairing public confidence in that institution. The burden is upon the applicant to establish that the application warrants approval.1,2
A. Scope of Section 19
Section 19 covers institution-affiliated parties, as defined by 12 U.S.C. § 1813(u) and others who are participants in the conduct of the affairs of an insured institution. This Statement of Policy applies only to insured institutions, their institution-affiliated parties, and those participating in the affairs of an insured depository institution. Therefore, all employees of an insured institution fall within the scope of Section 19. In addition, those deemed to be de facto employees, as determined by the FDIC based upon generally applicable standards of employment law, will also be subject to Section 19. Whether other persons who are not institution-affiliated parties are covered depends upon their degree of influence or control over the management or affairs of an insured institution. For example, in the context of the FDIC’s application of Section 19, it would apply to an insured depository institution’s holding company’s directors and officers to the extent that they have the power to define and direct the management or affairs of insured depository institution. Similarly, directors and officers of affiliates, subsidiaries or joint ventures of an insured institution or its holding company will be covered if they participate in the affairs of the insured
1 RED TEXT is information added by SecurTest to help the user of this policy understand how SecurTest uses this information in reviewing and grading a background report to comply with the FDIC policies. The commentary by SecurTest in red text is for informational purposes only and not for the purpose of providing legal advice. You should contact your attorney or the FDIC to obtain advice with respect to any particular issue or problem. Use of and access to the SecurTest commentary (red text) do not create an attorney-client relationship between SecurTest and the user or browser. The opinions expressed at or through this site are the opinions of SecurTest. 2 SecurTest Comment: Our patented iReviewNow System one of the reasons we were selected as an approved background screening provider. iReviewNow allows subjects to explain or provide important context to the criminal acts or convictions. It allows them to dispute the accuracy of the report, which then results in a reinvestigation by SecurTest. It also allows the subjects to explain self-rehabilitation history and reasons they should be approved by the FDIC, including uploading letters of recommendations or other material they deem important.
22 institution or are in a position to influence or control the management or affairs of the insured institution. Typically, an independent contractor does not have a relationship with the insured institution other than the activity for which the insured institution has contracted. In terms of participation, an independent contractor who influences or controls the management or affairs of the insured institution would be covered by Section 19. Further, "person" for purposes of Section 19 means an individual, and does not include a corporation, firm or other business entity. Individuals who file an application with the FDIC under the provisions of Section 19 who also seek to participate in the affairs of a bank or savings and loan holding company may have to comply with any filing requirements of the Board of the Governors of the Federal Reserve System under 12 U.S.C. § 1829(d) & (e).
Section 19 specifically prohibits a person subject to its coverage from owning or controlling an insured institution. For purposes of defining "control" and "ownership" under Section 19, the FDIC has adopted the definition of "control" set forth in the Change in Bank Control Act (12 U.S.C. § 1817(j)(8)(B)). A person will be deemed to exercise "control" if that person has the power to vote 25 percent or more of the voting shares of an insured institution (or 10 percent of the voting shares if no other person has more shares) or the ability to direct the management or policies of the insured institution. Under the same standards, person will be deemed to "own" an insured institution if that person owns 25 percent or more of the insured institution's voting stock, or 10 percent of the voting shares if no other person owns more. These standards would also apply to an individual acting in concert with others so as to have such ownership or control. Absent the FDIC's consent, persons subject to the prohibitions of Section 19 will be required to divest their control or ownership of shares above the foregoing limits.
B. Standards for Determining Whether an Application Is Required3
Except as indicated in paragraph (5), below, an application must be filed where there is present a conviction by a court of competent jurisdiction for a covered offense by any adult or minor treated as an adult, or where such person has entered a pretrial diversion or similar program regarding that offense. Before an application is considered by the FDIC, all of the sentencing requirements associated with a conviction or conditions imposed by the pretrial diversion, or similar program, including but not limited to, imprisonment, fines, condition of rehabilitation, and probation requirements, must be completed4, and the case must be considered final by the procedures of the applicable jurisdiction. The FDIC’s application forms as well as additional information concerning Section 19 can be accessed at the FDIC website. The link is:
https://www.fdic.gov/regulations/laws/forms/section19.html
3 Bold text is highlighted as it pertains to how SecurTest records or grades the information consistent with FDIC mandates. 4 Underlined text is “Emphasis added by SecurTest.”
23 (1) Convictions. There must be present a conviction of record. Section 19 does not cover arrests, pending cases not brought to trial, acquittals, or any conviction that has been reversed on appeal.5 A conviction with regard to which an appeal is pending requires an application.6 A conviction for which a pardon has been granted will require an application.7 A conviction that has been completely expunged is not considered a conviction of record and will not require an application.8 If an order of expungement has been issued in regard to a conviction or program entry and is intended by the language in the order itself, or in the legislative provisions under which the order was issued, to be a complete expungement, then the jurisdiction, either in the order or the underlying legislative provisions, cannot allow the conviction or program entry to be used for any subsequent purpose including, but not limited to, an evaluation of a person’s fitness or character. The failure to destroy or seal the records will not prevent the expungement from being considered complete for the purposes of Section 19 in such a case.9 Expungements of pretrial diversion or similar program entries will be treated the same as those for convictions. Convictions that are set aside or reversed after the applicant has completed sentencing will be treated consistent with pretrial diversions or similar programs unless the court records reflect that the underlying conviction was set aside based on a finding on the merits that such conviction was wrongful.10
(2) Pretrial Diversion or Similar Program. Program entry, whether formal or informal, is characterized by a suspension or eventual dismissal of charges or criminal prosecution often upon agreement by the accused to treatment, rehabilitation, restitution, or other noncriminal or non-punitive alternatives. Whether a program constitutes a pretrial diversion or similar program is determined by relevant Federal, state or local law, and, if not so designated under applicable law then the determination of whether it is a pretrial diversion or similar program will be made by the FDIC on a case-by-case basis. Program entries prior to November 29, 1990, are not covered by Section 19.11
(3) Dishonesty or Breach of Trust. The conviction or program entry must be for a criminal offense involving dishonesty, breach of trust or money laundering. "Dishonesty" means directly or indirectly to cheat or defraud; to cheat or defraud for
5 SecurTest reports pending charges, as HR Review. HR Review allows the employer or user of the SecurTest report to make informed hiring or retention decisions that may fall outside the scope of the FDIC rules. 6 Convictions on appeal must be reported by SecurTest. 7 SecurTest must report convictions even where a pardon has been granted. 8 Expunged records are not included in a SecurTest report, as the clerk of courts or reporting entity has redacted or removed such records. 9 The subject of the report, legal counsel, the courts, and the clerks of the courts are responsible for insuring that expunged records have been removed from criminal records. 10 SecurTest must report these criminal records. 11 SecurTest must report these criminal records, except where such was prior to November 29, 1990.
24 monetary gain or its equivalent; or wrongfully to take property belonging to another in violation of any criminal statute. Dishonesty includes acts involving want of integrity, lack of probity, or a disposition to distort, cheat, or act deceitfully or fraudulently, and may include crimes which Federal, state or local laws define as dishonest. "Breach of trust" means a wrongful act, use, misappropriation or omission with respect to any property or fund that has been committed to a person in a fiduciary or official capacity, or the misuse of one's official or fiduciary position to engage in a wrongful act, use, misappropriation or omission.
Whether a crime involves dishonesty or breach of trust will be determined from the statutory elements of the crime itself. All convictions or program entries for offenses concerning the illegal manufacture, sale, distribution of, or trafficking in controlled substances shall require an application unless they fall within the provisions for de minimis12 offenses set out in (5) below.
(4) Youthful Offender Adjudgments. An adjudgment by a court against a person as a "youthful offender" under any youth offender law, or any adjudgment as a "juvenile delinquent" by any court having jurisdiction over minors as defined by state law does not require an application. Such adjudications are not considered convictions for criminal offenses. Such adjudications do not constitute a matter covered under Section 19 and is not an offense or program entry for determining the applicability of the de minimis offenses exception to the filing of an application.13
(5) De minimis Offenses.
(a) In General
Approval is automatically granted and an application will not be required where the covered offense is considered de minimis, because it meets all of the following criteria:14
• There is only one conviction or program entry of record for a covered offense;
• The offense was punishable by imprisonment for a term of one year or less and/or a fine of $2,500 or less, and the individual served three (3) days or less of jail time. The FDIC considers jail time to include any significant restraint on an individual’s freedom of movement which includes, as part of the restriction, confinement to a specific facility or building on a continuous basis where the person may leave temporarily only to perform specific functions or during specified times periods or both. The definition
12 De minimis essentially means something the courts consider minor or minuscle and will not be considered. 13 SecurTest does not report convictions or criminal records unless the juvenile was adjudicated an adult. 14 It is important that the user understand that each criteria must be met.
25 is not intended to include those on probation or parole who may be restricted to a particular jurisdiction, or who must report occasionally to an individual or to a specified location.
• The conviction or program was entered at least five years prior to the date an application would otherwise be required; and
• The offense did not involve an insured depository institution or insured credit union.
(b) Additional Applications of the De minimis Offenses Exception to Filing
Age at time of covered offense
• If the actions that resulted in a covered conviction or program entry of record all occur when the individual was 21 years of age or younger, then the subsequent conviction or program entry, that otherwise meets the general de minimis criteria in (a) above, will be considered de minimis if the conviction or program entry was entered at least 30 months prior to the date an application would otherwise be required and all sentencing or program requirements have been met.
Convictions or program entries for insufficient funds checks
• Convictions or program entries of record based on the writing of "bad" or insufficient funds check(s) shall be considered a de minimis offense under this provision and will not be considered as having involved an insured depository institution if the following applies:
• There is no other conviction or program entry subject to Section 19, and the aggregate total face value of all “bad” or insufficient funds check(s) cited across all the conviction(s) or program entry(ies) for bad or insufficient funds checks is $1,000 or less; and
• No insured depository institution or insured credit union was a payee on any of the “bad” or insufficient funds checks that were the basis of the conviction(s) or program entry(ies).
Convictions or program entries for small-dollar, simple theft
• A conviction or program entry based on a simple theft of goods, services and/or
currency (or other monetary instrument) where the aggregate value of the currency goods and/or services taken was $500 or less at the time of conviction or program entry, where the person has no other conviction or program entry under Section 19, where it has been five years since the conviction or program entry (30 months in the case of a person 21 or younger as described above) and which does not involve an insured
26 financial institution or insured credit union is considered de minimis. Simple theft excludes burglary, forgery, robbery, identity theft, and fraud.
C. Procedures
Convictions or program entries for the use of a fake, false or altered identification card
The use of a fake, false or altered identification card used by person under the legal age for the purpose of obtaining or purchasing alcohol, or used for the purpose of entering a premise where alcohol is served but for which age appropriate identification is required, provided that there is no other conviction or program entry for a covered offense, will be considered de minimis.
Any person who meets the criteria under (5) above shall be covered by a fidelity bond to the same extent as others in similar positions, and shall disclose the presence of the conviction or program entry to all insured institutions in the affairs of which he or she intends to participate.
Further, no conviction or program entry for a violation of the Title 18 sections set out in 12 U.S.C. § 1829(a)(2) can qualify under any of the de minimis exceptions to filing set out in 5 above.
When an application is required, forms and instructions should be obtained from, and the application filed with, the appropriate FDIC Regional Director. The application must be filed by an insured institution on behalf of a person (bank-sponsored) unless the FDIC grants a waiver of that requirement (individual waiver). Such waivers will be considered on a case-by-case basis where substantial good cause for granting a waiver is shown. The appropriate Regional Office for a bank-sponsored application is the office covering the state where the bank’s home office is located. The appropriate Regional Office for an individual filing for a waiver of the institution filing requirement is the office covering the state where the person resides.
D. Evaluation of Section 19 Applications
The essential criteria in assessing an application are whether the person has demonstrated his or her fitness to participate in the conduct of the affairs of an insured institution, and whether the affiliation, ownership, control or participation by the person in the conduct of the affairs of the insured institution may constitute a threat to the safety and soundness of the insured institution or the interests of its depositors or threaten to impair public confidence in the insured institution. In determining the degree of risk, the FDIC will consider, in conjunction with the factors set out in 12 CFR 308.157:
(1) Whether the conviction or program entry and the specific nature and circumstances of the offense are a criminal offense under Section 19;
27 (2) Whether the participation directly or indirectly by the person in any manner in the conduct of the affairs of the insured institution constitutes a threat to the safety and soundness of the insured institution or the interests of its depositors or threatens to impair public confidence in the insured institution;
(3) Evidence of rehabilitation including the person's reputation since the conviction or program entry, the person's age at the time of conviction or program entry, and the time that has elapsed since the conviction or program entry;
(4) The position to be held or the level of participation by the person at an insured institution;
(5) The amount of influence and control the person will be able to exercise over the management or affairs of an insured institution;
(6) The ability of management of the insured institution to supervise and control the person's activities;
(7) The level of ownership the person will have of the insured institution;
(8) The applicability of the insured institution's fidelity bond coverage to the person; and
(9) Any additional factors in the specific case that appear relevant including but not limited to the opinion or position of the primary Federal and/or state regulator.
The foregoing criteria will also be applied by the FDIC to determine whether the interests of justice are served in seeking an exception in the appropriate court when an application is made to terminate the ten-year ban under 12 U.S.C. 1829(a)(2) for certain Federal offenses, prior to its expiration date.
Some applications can be approved without an extensive review because the person will not be in a position to constitute any substantial risk to the safety and soundness of the insured institution. Persons who will occupy clerical, maintenance, service, or purely administrative positions, generally fall into this category. A more detailed analysis will be performed in the case of persons who will be in a position to influence or control the management or affairs of the insured institution. All approvals and orders will be subject to the condition that the person shall be covered by a fidelity bond to the same extent as others in similar positions. In cases in which a waiver of the institution filing requirement has been granted to an individual, approval of the application will also be conditioned upon that person disclosing the presence of the conviction(s) or program entry(ies) to all insured institutions in the affairs of which he or she wishes to participate. When deemed appropriate, bank sponsored applications are to allow the person to work in a specific job at a specific bank and may also be
28 subject to the condition that the prior consent of the FDIC will be required for any proposed significant changes in the person's duties and/or responsibilities. In the case of bank applications such proposed changes may, in the discretion of the Regional Director, require a new application. In situations in which an approval has been granted for a person to participate in the affairs of a particular insured institution and who subsequently seeks to participate at another insured depository institution, another application must be submitted.
By order of the Board of Directors, July 19, 2018.
FEDERAL DEPOSIT INSURANCE CORPORATION
Applying for Special FDIC Consideration
The federal law allows you to petition the FDIC Regional Director for special consideration. Section 19 of the Federal Deposit Insurance Act prohibits individuals that are convicted of certain criminal offenses from participating in the affairs of an insured depository institution without the written consent of the FDIC. Individuals or banks can seek the FDIC’s written consent by filing Section 19 Application Form 6710-07, Application Pursuant to Section 19 of the Federal Deposit Insurance Act. This form distinguishes between applications that are bank-sponsored and applications that are for individual waivers. Section 19 Application Form 6710-07 – PDF (PDF Help) Section 19 Application Form 6710-07 – Word (MS Word Help) In addition to completing Form 6710-07, applicants must contact the appropriate FDIC regional or area office to request supplemental materials that must be completed and submitted with the completed application form. These supplemental materials are not available on the FDIC website or electronically (e.g., fingerprint cards), and will be mailed to the applicant by the appropriate regional or area office. Appropriate FDIC office listings are located on page 2 of Form 6710-07. Also, each FDIC regional or area office has Section 19 contacts available to answer questions about the application process. An applicant must file with the appropriate FDIC office for his/her application to be processed. The appropriate FDIC office is determined by the applicant’s current state or territory of residence, and not by the state where the conviction or prosecution occurred. Failure to submit all required information (application and supplemental materials) to the appropriate FDIC office will delay the processing of your application. See https://www.fdic.gov/regulations/laws/forms/section19.html for this Application.
29
SecurTest FDIC Grading Criteria
These codes are based on Section 19 of the Federal Deposit Insurance Act (12 U.S.C. § 1829).
NOTE: Some fail codes may be shared between very similar offenses. For example, an individual may fail for indecent assault and indecent exposure. In that instance we would use “6. Indecent Assault” and “6. Indecent Exposure”. SecurTest uses the FDIC criteria upon using the following codes. However, SecurTest only provides the grading for convenience purposes, as it is the sole responsibility of the user of the SecurTest Report to ensure it follows the FDIC rules and regulations and all applicable federal, state, and local laws, rules and regulations. § 24. Abduction § 82. Aggravated Assault / Battery § 17. Assault (Felony) § 93. Assault with Intent to Commit a Felony § 49. Bad Checks § 60. Bribery § 37. Burglary § 40. Check Kiting § 24. Child Abduction (not in domestic relationship) § 2. Child Molestation § 88. Concealment of Assets § 60. Corruption § 89. Counterfeiting § 23. Domestic Violence § 52. Drug Trafficking / Illegal Sale or Manufacture § 38. Embezzlement § 29. False Imprisonment § 90. Falsification / Falsifying Documents § 40. Forgery § 41. Fraud § 31. Harassment § 21. Hate Crimes § 94. Hostage Taking § 66. Impersonation
30 § 6. Indecent Assault § 6. Indecent Exposure § 17. Inflicting Corporal injury § 24. Kidnapping § 26. Manslaughter § 95. Mayhem / Dismemberment § 91. Misapplication / Misappropriation of Funds § 42. Money Laundering § 26. Murder / Attempted Murder § 92. Perjury § 57. Possession of Illegal Weapons § 50. Possession of Stolen Property § 13. Prostitution § 8. Rape / Attempted Rape § 45. Receipt of Stolen Property § 30. Robbery § 14. Sex Crimes § 5. Sexual / Carnal Abuse of Children § 39. Shoplifting § 17. Simple Assault § 18. Simple Battery § 31. Stalking § 32. Terrorism § 33. Terrorist Threats § 38. Theft / Larceny § 32. Treason § 54. Violation of Protection order § 57. Weapons Use § 71. Outstanding Criminal Warrants HR REVIEW CODES – We report other convictions and relevant information that may not disqualify a person from working at or for an FDIC regulated facility. You may still hire the candidate or retain the employee to work in facilities that are not regulated by the FDIC.
80. Unable to Authenticate Identity 98. Other Felony Conviction 96. Pending Felony Case 99. Other Misdemeanor Conviction 97. Pending Criminal Case 101. No Consumer Authorization
submitted
31 FCRA Background Checks What Employers Need to Know You are required to follow the FCRA regarding the use of our background reports. The FTC and EEOC prepared important guidance, which can be found at https://www.eeoc.gov/eeoc/publications/background_checks_employers.cfm. The following information is provided as it relates to hiring and retention decisions.
A joint publication of the Equal Employment Opportunity Commission and the Federal Trade Commission
When making personnel decisions - including hiring, retention, promotion, and reassignment - employers sometimes want to consider the backgrounds of applicants and employees. For example, some employers might try to find out about the person's work history, education, criminal record, financial history, medical history, or use of social media. Except for certain restrictions related to medical and genetic information (see below), it's not illegal for an employer to ask questions about an applicant's or employee's background, or to require a background check.
However, any time you use an applicant's or employee's background information to make an employment decision, regardless of how you got the information, you must comply with federal laws that protect applicants and employees from discrimination. That includes discrimination based on race, color, national origin, sex, or religion; disability; genetic information (including family medical history); and age (40 or older). These laws are enforced by the Equal Employment Opportunity Commission (EEOC).
In addition, when you run background checks through a company in the business of compiling background information, you must comply with the Fair Credit Reporting Act (FCRA). The Federal Trade Commission (FTC) enforces the FCRA. This publication explains how to comply with both the federal nondiscrimination laws and the FCRA. It's also a good idea to review the laws of your state and municipality regarding background reports or information because some states and municipalities regulate the use of that information for employment purposes.
Before You Get Background Information
EEOC In all cases, make sure that you're treating everyone equally. It's illegal to check the background of applicants and employees when that decision is based on a person's race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older). For example, asking only people of a certain race about their financial histories or criminal records is evidence of discrimination.
Except in rare circumstances, don't try to get an applicant's or employee's genetic information, which includes family medical history. Even if you have that information, don't use it to make an employment decision. (For more information about this law, see the EEOC's publications explaining the Genetic Information Nondiscrimination Act, or GINA.) Don't ask any medical questions before a conditional job offer has been made. If the person has already started the job, don't ask medical questions unless you have objective evidence that he or she is unable to do the job or poses a safety risk because of a medical condition.
32 FTC If you get background information (for example, a credit or criminal background report) from a company in the business of compiling background information, there are additional procedures the FCRA requires beforehand:
• Tell the applicant or employee you might use the information for decisions about his or her employment. This notice must be in writing and in a stand-alone format. The notice can't be in an employment application. You can include some minor additional information in the notice (like a brief description of the nature of consumer reports), but only if it doesn't confuse or detract from the notice.
• If you are asking a company to provide an "investigative report" - a report based on personal interviews concerning a person's character, general reputation, personal characteristics, and lifestyle - you must also tell the applicant or employee of his or her right to a description of the nature and scope of the investigation.
• Get the applicant's or employee's written permission to do the background check. This can be part of the document you use to notify the person that you will get the report. If you want the authorization to allow you to get background reports throughout the person's employment, make sure you say so clearly and conspicuously.
• Certify to the company from which you are getting the report that you:
o notified the applicant and got their permission to get a background report;
o complied with all of the FCRA requirements; and
o won't discriminate against the applicant or employee, or otherwise misuse the information in violation of federal or state equal opportunity laws or regulations.
Using Background Information
EEOC Any background information you receive from any source must not be used to discriminate in violation of federal law. This means that you should:
• Apply the same standards to everyone, regardless of their race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older). For example, if you don't reject applicants of one ethnicity with certain financial histories or criminal records, you can't reject applicants of other ethnicities because they have the same or similar financial histories or criminal records.
• Take special care when basing employment decisions on background problems that may be more common among people of a certain race, color, national origin, sex, or religion; among people who have a disability; or among people age 40 or older. For example, employers should not use a policy or practice that excludes people with certain criminal records if the policy or practice significantly disadvantages individuals of a particular race, national origin, or another protected characteristic, and does not accurately predict who will be a responsible, reliable, or safe employee. In legal terms, the policy or practice has a "disparate impact" and is not "job related and consistent with business necessity."
33 • Be prepared to make exceptions for problems revealed during a background check that were caused by a disability. For example, if you are inclined not to hire a person because of a problem caused by a disability, you should allow the person to demonstrate his or her ability to do the job - despite the negative background information - unless doing so would cause significant financial or operational difficulty.
FTC When taking an adverse action (for example, not hiring an applicant or firing an employee) based on background information obtained through a company in the business of compiling background information, the FCRA has additional requirements:
• Before you take an adverse employment action, you must give the applicant or employee:
o a notice that includes a copy of the consumer report you relied on to make your decision; and
o a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act," which you should have received from the company that sold you the report.
By giving the person the notice in advance, the person has an opportunity to review the report and explain any negative information.
• After you take an adverse employment action, you must tell the applicant or employee (orally, in writing, or electronically):
o that he or she was rejected because of information in the report;
o the name, address, and phone number of the company that sold the report;
o that the company selling the report didn't make the hiring decision, and can't give specific reasons for it; and
o that he or she has a right to dispute the accuracy or completeness of the report, and to get an additional free report from the reporting company within 60 days.
Disposing of Background Information
EEOC Any personnel or employment records you make or keep (including all application forms, regardless of whether the applicant was hired, and other records related to hiring) must be preserved for one year after the records were made, or after a personnel action was taken, whichever comes later. (The EEOC extends this requirement to two years for educational institutions and for state and local governments. The Department of Labor also extends this requirement to two years for federal contractors that have at least 150 employees and a government contract of at least $150,000.) If the applicant or employee files a charge of discrimination, you must maintain the records until the case is concluded.
FTC Once you've satisfied all applicable recordkeeping requirements, you may dispose of any background reports you received. However, the law requires that you dispose of the reports - and any information gathered from them - securely. That can include burning, pulverizing, or shredding paper documents and disposing of electronic information so that it can't be read or reconstructed.
34 For more information, see "Disposing of Consumer Report Information? Rule Tells How" at http://www.business.ftc.gov/documents/alt152-disposing-consumer-report-information-rule-tells-how.
Further Information
EEOC To find out more about federal antidiscrimination laws, visit www.eeoc.gov, or call the EEOC toll-free, 800-669-4000 (voice); TTY: 800-669-6820. The EEOC is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person's race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information. The EEOC investigates, conciliates, and mediates charges of employment discrimination, and also files lawsuits in the public interest. For specific information on:
• Preemployment medical inquiries: see Preemployment Disability-Related Questions and Medical Examinations at www.eeoc.gov/policy/docs/preemp.html.
• Medical inquiries during employment: see Questions and Answers: Enforcement Guidance on Disability-Related Inquiries and Medical Examinations of Employees Under the Americans with Disabilities Act (ADA) at www.eeoc.gov/policy/docs/qanda-inquiries.html.
• Genetic inquiries, including inquiries about family medical history: see Background Information for EEOC Final Rule on Title II of the Genetic Information Nondiscrimination Act of 2008 at www.eeoc.gov/laws/regulations/gina-background.cfm.
• EEOC recordkeeping requirements: see Summary of Selected Recordkeeping Obligations in 29 C.F.R. Part 1602 at www.eeoc.gov/employers/recordkeeping_obligations.cfm.
• Using arrest and conviction records to make employment decisions: see Questions and Answers about EEOC's Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII at www.eeoc.gov/laws/guidance/qa_arrest_conviction.cfm.
• Whether arrest and conviction records act as an automatic bar to all employment: see Reentry Myth Buster: On Hiring/Criminal Records Guidance at csgjusticecenter.org/wp-content/uploads/2012/11/Reentry_Council_Mythbuster_Employment.pdf.
• Background on the EEOC for small businesses: see Get the Facts Series: Small Business Information, www.eeoc.gov/eeoc/publications/smallbusiness.cfm.
FTC To find out more about federal laws relating to background reports, visit www.business.ftc.gov, or call the FTC toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. For specific information on employment background reports, see:
• Using Consumer Reports: What Employers Need to Know at www.business.ftc.gov/documents/bus08-using-consumer-reports-what-employers-need-know
35 • The Fair Credit Reporting Act & social media: What businesses should know at www.business.ftc.gov/blog/2011/06/fair-credit-reporting-act-social-media-what-businesses-should-know
• Background screening reports and the FCRA: Just saying you're not a consumer reporting agency isn't enough at www.business.ftc.gov/blog/2013/01/background-screening-reports-and-fcra-just-saying-youre-not-consumer-reporting-agency-i
• Reentry Myth Buster: Criminal Histories and Employment Background Checks at csgjusticecenter.org/wpcontent/uploads/2012/11/Reentry_Council_Mythbuster_FCRA_Employment.pdf.
Additional Material: https://www.ftc.gov/news-events/blogs/business-blog/2017/04/background-checks-prospective-employees-keep-required https://www.ftc.gov/news-events/press-releases/2016/05/new-ftc-business-guidance-employment-background-screening
Ordering MVR (Driving), Employment References and Education Verifications Separate authorizations are required for these requests. Please contact [email protected] for these forms. Some states have unique forms that also must be signed by the subject for MVR checks.
36 Once your account is setup to order these searches, you will notice the box on the left of the Applicant Information screen. Check the boxes for Motor Vehicle Records, Education, and/or Employment Verification. (See bottom of previous page.) You will be prompted to enter additional information, such as the driver’s license number, college or university, and employment references. Complete all fields, as this will help us perform these important searches. Motor Vehicle Records Enter the Drivers License Number and State it was issued. Click on the+ Save Keyed Information and Add to Order.
Education Verification Enter the College or University. You will notice that as you type you will see the correct name for the institution. Do not enter high school, as we do not verify secondary education. It is important to enter the subject’s name used at the time of graduation if different. Click on the+ Save Keyed Information and Add to Order
Employment Verification
Enter the Company Name, Location, and Phone number for the first employer. Complete as many fields possible. or University. You will notice that as you type you will see the correct name for the institution. Do not enter high school, as we do not verify secondary education. It is important to enter the subject’s name used at the time of employment if different. Click on the+ Save Keyed Information and Add to Order. Click Add another employer for the next employer and save each entry.
37
Ordering Drug Testing Most employers wait for the criminal history background report to be completed before ordering a drug test as a cost savings. Here are the steps to order drug testing from SecurTest. First, contact SecurTest to add drug testing to your menu options. 1. Click on the Results Screen.
2. You will notice a purple colored lab flask on the right side of the screen.
3. Click on this icon for the candidate that you wish to order a drug test. 4. A window will appear with the candidate’s information.
38 5. You will need to make sure that the candidate’s Phone Number (all numbers, no dashes) and email are filled in, as the Medical Review Officer (MRO) may need to speak to the candidate about the results.
6. Select the 5-Panel or 10-Panel option from the drop down box, “Screening Type.”
7. You will then be directed to locations to schedule an appointment for the drug test.
Our Customer Service and Compliance Team is available to answer your questions and train your team in using SecurTest and iReviewNow.
(800) 445-8001
© 2018 SecurTest, Inc. All rights reserved. SecurHomeland, Accuratized, SecurTest, and Getting the Most Accurate Information with Our Exclusive 360 º Degree Process are registered trademarks of SecurTest, Inc. iReviewNow United States Patents 7,979,908, 8,646,101 and 9,183,363. iReviewNow is the registered trademark of iReviewNow., LLC.
Sample documents should NOT be construed as legal advice, guidance or counsel. Employers should consult their own attorney about their compliance responsibilities under the FCRA and applicable state law. SecurTest, Inc. expressly disclaims any warranties or responsibility or damages associated with or arising out of information provided. Employers seeking credit reports must provide additional notices pursuant to state law.
Background ChecksWhat Employers Need to Know
A joint publication of the Equal Employment Opportunity Commission and the Federal Trade Commission
1
When making personnel decisions — including hiring,
retention, promotion, and reassignment — employers
sometimes want to consider the backgrounds of applicants
and employees. For example, some employers might try to
find out about the person’s work history, education, criminal
record, financial history, medical history, or use of social
media. Except for certain restrictions related to medical
and genetic information (see below), it’s not illegal for an
employer to ask questions about an applicant’s or employee’s
background, or to require a background check.
However, any time you use an applicant’s or employee’s
background information to make an employment decision,
regardless of how you got the information, you must comply
with federal laws that protect applicants and employees
from discrimination. That includes discrimination based on
race, color, national origin, sex, or religion; disability; genetic
information (including family medical history); and age (40
or older). These laws are enforced by the Equal Employment
Opportunity Commission (EEOC).
In addition, when you run background checks through
a company in the business of compiling background
information, you must comply with the Fair Credit Reporting
Act (FCRA). The Federal Trade Commission (FTC) enforces the
FCRA. This publication explains how to comply with both
the federal nondiscrimination laws and the FCRA. It’s also a
good idea to review the laws of your state and municipality
regarding background reports or information because some
states and municipalities regulate the use of that information
for employment purposes.
2
Before You Get Background Information
EEOCIn all cases, make sure that you’re treating everyone equally. It’s illegal to check the background of applicants and employees when that decision is based on a person’s race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older). For example, asking only people of a certain race about their financial histories or criminal records is evidence of discrimination.
Except in rare circumstances, don’t try to get an applicant’s or employee’s genetic information, which includes family medical history. Even if you have that information, don’t use it to make an employment decision. (For more information about this law, see the EEOC’s publications explaining the Genetic Information Nondiscrimination Act, or GINA.) Don’t ask any medical questions before a conditional job offer has been made. If the person has already started the job, don’t ask medical questions unless you have objective evidence that he or she is unable to do the job or poses a safety risk because of a medical condition.
FTCIf you get background information (for example, a credit or criminal background report) from a company in the business of compiling background information, there are additional procedures the FCRA requires beforehand:
● Tell the applicant or employee you might use the information for decisions about his or her employment. This notice must be in writing and in a stand-alone format. The notice can’t be in an employment application. You can include some minor additional information in the notice (like
3
a brief description of the nature of consumer reports), but only if it doesn’t confuse or detract from the notice.
● If you are asking a company to provide an “investigative report” – a report based on personal interviews concerning a person’s character, general reputation, personal characteristics, and lifestyle – you must also tell the applicant or employee of his or her right to a description of the nature and scope of the investigation.
● Get the applicant’s or employee’s written permission to do the background check. This can be part of the document you use to notify the person that you will get the report. If you want the authorization to allow you to get background reports throughout the person’s employment, make sure you say so clearly and conspicuously.
● Certify to the company from which you are getting the report that you:
● notified the applicant and got their permission to get a background report;
● complied with all of the FCRA requirements; and
● won’t discriminate against the applicant or employee, or otherwise misuse the information in violation of federal or state equal opportunity laws or regulations.
Using Background Information
EEOCAny background information you receive from any source must not be used to discriminate in violation of federal law. This means that you should:
4
● Apply the same standards to everyone, regardless of their race, national origin, color, sex, religion, disability, genetic information (including family medical history), or age (40 or older). For example, if you don’t reject applicants of one ethnicity with certain financial histories or criminal records, you can’t reject applicants of other ethnicities because they have the same or similar financial histories or criminal records.
● Take special care when basing employment decisions on background problems that may be more common among people of a certain race, color, national origin, sex, or religion; among people who have a disability; or among people age 40 or older. For example, employers should not use a policy or practice that excludes people with certain criminal records if the policy or practice significantly disadvantages individuals of a particular race, national origin, or another protected characteristic, and does not accurately predict who will be a responsible, reliable, or safe employee. In legal terms, the policy or practice has a “disparate impact” and is not “job related and consistent with business necessity.”
● Be prepared to make exceptions for problems revealed during a background check that were caused by a disability. For example, if you are inclined not to hire a person because of a problem caused by a disability, you should allow the person to demonstrate his or her ability to do the job – despite the negative background information – unless doing so would cause significant financial or operational difficulty.
FTCWhen taking an adverse action (for example, not hiring an applicant or firing an employee) based on background information obtained through a company in the business of
5
compiling background information, the FCRA has additional requirements:
● Before you take an adverse employment action, you must give the applicant or employee:
● a notice that includes a copy of the consumer report you relied on to make your decision; and
● a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act,” which you should have received from the company that sold you the report.
By giving the person the notice in advance, the person has an opportunity to review the report and explain any negative information.
● After you take an adverse employment action, you must tell the applicant or employee (orally, in writing, or electronically):
● that he or she was rejected because of information in the report;
● the name, address, and phone number of the company that sold the report;
● that the company selling the report didn’t make the hiring decision, and can’t give specific reasons for it; and
● that he or she has a right to dispute the accuracy or completeness of the report, and to get an additional free report from the reporting company within 60 days.
6
Disposing of Background Information
EEOCAny personnel or employment records you make or keep (including all application forms, regardless of whether the applicant was hired, and other records related to hiring) must be preserved for one year after the records were made, or after a personnel action was taken, whichever comes later. (The EEOC extends this requirement to two years for educational institutions and for state and local governments. The Department of Labor also extends this requirement to two years for federal contractors that have at least 150 employees and a government contract of at least $150,000.) If the applicant or employee files a charge of discrimination, you must maintain the records until the case is concluded.
FTCOnce you’ve satisfied all applicable recordkeeping requirements, you may dispose of any background reports you received. However, the law requires that you dispose of the reports – and any information gathered from them – securely. That can include burning, pulverizing, or shredding paper documents and disposing of electronic information so that it can’t be read or reconstructed. For more information, see “Disposing of Consumer Report Information? Rule Tells How” at www.business.ftc.gov/documents/disposing-consumer-report-information-rule-tells-how.
7
Further Information
EEOCTo find out more about federal antidiscrimination laws, visit www.eeoc.gov, or call the EEOC toll-free, 800-669-4000 (voice); TTY: 800-669-6820. The EEOC is responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or an employee because of the person’s race, color, religion, sex (including pregnancy), national origin, age (40 or older), disability, or genetic information. The EEOC investigates, conciliates, and mediates charges of employment discrimination, and also files lawsuits in the public interest. For specific information on:
● Preemployment medical inquiries: see Preemployment Disability-Related Questions and Medical Examinations at www.eeoc.gov/policy/docs/preemp.html.
● Medical inquiries during employment: see Questions and Answers: Enforcement Guidance on Disability-Related Inquiries and Medical Examinations of Employees Under the Americans with Disabilities Act (ADA) at www.eeoc.gov/policy/docs/qanda-inquiries.html.
● Genetic inquiries, including inquiries about family medical history: see Background Information for EEOC Final Rule on Title II of the Genetic Information Nondiscrimination Act of 2008 at www.eeoc.gov/laws/regulations/gina-background.cfm.
● EEOC recordkeeping requirements: see Summary of Selected Recordkeeping Obligations in 29 C.F.R. Part 1602 at www.eeoc.gov/employers/recordkeeping_obligations.cfm.
8
● Using arrest and conviction records to make employment decisions: see Questions and Answers about EEOC’s Enforcement Guidance on the Consideration of Arrest and Conviction Records in Employment Decisions Under Title VII at www.eeoc.gov/laws/guidance/qa_arrest_conviction.cfm.
● Whether arrest and conviction records act as an automatic bar to all employment: see Reentry Myth Buster: On Hiring/Criminal Records Guidance at csgjusticecenter.org/wp-content/uploads/2012/11/Reentry_Council_Mythbuster_Employment.pdf.
● Background on the EEOC for small businesses: see Get the Facts Series: Small Business Information, www.eeoc.gov/eeoc/publications/smallbusiness.cfm.
FTCTo find out more about federal laws relating to background reports, visit www.business.ftc.gov, or call the FTC toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. For specific information on employment background reports, see:
● Using Consumer Reports: What Employers Need to Know at www.business.ftc.gov/documents/bus08-using-consumer-reports-what-employers-need-know
● The Fair Credit Reporting Act & social media: What businesses should know at www.business.ftc.gov/blog/2011/06/fair-credit-reporting-act-social-media-what-businesses-should-know
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● Background screening reports and the FCRA: Just saying you’re not a consumer reporting agency isn’t enough at www.business.ftc.gov/blog/2013/01/background-screening-reports-and-fcra-just-saying-youre-not-consumer-reporting-agency-i
● Reentry Myth Buster: Criminal Histories and Employment Background Checks at csgjusticecenter.org/wpcontent/uploads/2012/11/Reentry_Council_Mythbuster_FCRA_Employment.pdf.
The FTC works to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to businesses to help them comply with the law.
Using Consumer Reports: What EmployersNeed to KnowTAGS: RELATED RULE:
When you use consumer reports to make employment decisions like hiring, promotion, reassignment, andretention, the Fair Credit Reporting Act requires you to take important compliance steps. Find out more aboutkeeping your company within the law.
Your company has job vacancies to fill. You're also thinking about promoting some employees from within thecompany. You've winnowed down the stack of applications and resumes and want to run background checks througha third party company who is in the business of compiling background information.
Employment background checks also are known as consumer reports. They can include information from a variety ofsources, including credit reports and criminal records.
When you use consumer reports to make employment decisions, including hiring, retention, promotion orreassignment, you must comply with the Fair Credit Reporting Act (FCRA).The Federal Trade Commission (FTC)enforces the FCRA.
Complying with the FCRAYou must take certain steps before you can get a consumer report, and before and after you take an adverse actionbased on that report.
Before You Get a Consumer ReportYou must:
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Tell the applicant or employee that you might use information in their consumer report for decisions related totheir employment. This notice must be in writing and in a stand-alone format. The notice cannot be in anemployment application. You can include some minor additional information in the notice, like a brief descriptionof the nature of consumer reports, but only if it does not confuse or detract from the notice.
Get written permission from the applicant or employee. This can be part of the document you use to notify the
It's a good idea to review applicable laws of your state related to consumer reports. Some states restrict the use ofconsumer reports – usually credit reports – for employment purposes.
Before You Take an Adverse ActionBefore you reject a job application, reassign or terminate an employee, deny a promotion, or take any other adverseemployment action based on information in a consumer report, you must give the applicant or employee:
Giving the person the notice in advance gives the person the opportunity to review the report and tell you if it iscorrect.
After You Take an Adverse ActionIf you take an adverse action based on information in a consumer report, you must give the applicant or employee anotice of that fact – orally, in writing, or electronically.
An adverse action notice tells people about their rights to see information being reported about them and to correctinaccurate information. The notice must include:
Investigative Reports
Employers who use "investigative reports" – reports based on personal interviews concerning a person'scharacter, general reputation, personal characteristics, and lifestyle – have additional obligations under theFCRA. These obligations include giving written notice that you may request or have requested an investigativeconsumer report, and giving a statement that the person has a right to request additional disclosures and asummary of the scope and substance of the report. (See 15 U.S.C. section 1681d(a), (b)).
person that you will get a consumer report. If you want the authorization to allow you to get consumer reportsthroughout the person's employment, make sure you say so clearly and conspicuously.
Certify compliance to the company from which you are getting the applicant or employee's information. Youmust certify that you:
notified the applicant or employee and got their permission to get a consumer report;
complied with all of the FCRA requirements; and
will not discriminate against the applicant or employee or otherwise misuse the information, as provided byany applicable federal or state equal opportunity laws or regulations.
a notice that includes a copy of the consumer report you relied on to make your decision; and
a copy of A Summary of Your Rights Under the Fair Credit Reporting Act, which the company that gave you thereport should have given to you.
the name, address, and phone number of the consumer reporting company that supplied the report;
a statement that the company that supplied the report did not make the decision to take the unfavorable actionand can't give specific reasons for it; and
a notice of the person's right to dispute the accuracy or completeness of any information the consumerreporting company furnished, and to get an additional free report from the company if the person asks for itwithin 60 days.
Disposing of Consumer ReportsWhen you're done using a consumer report, you must securely dispose of the report and any information yougathered from it. That can include burning, pulverizing, or shredding paper documents and disposing of electronicinformation so that it can't be read or reconstructed. For more information, see Disposing of Consumer ReportInformation? Rule Tells How.
For More InformationFind specific FCRA information on:
Your Opportunity to CommentThe National Small Business Ombudsman and 10 Regional Fairness Boards collect comments from small businessesabout federal compliance and enforcement activities. Each year, the Ombudsman evaluates the conduct of theseactivities and rates each agency’s responsiveness to small businesses. Small businesses can comment to theOmbudsman without fear of reprisal. To comment, call toll-free 1-888-REGFAIR (1-888-734-3247) or go towww.sba.gov/ombudsman.
October 2016
Getting consumer reports (see Section 604(b) of the FCRA, 15 U.S.C. § 1681b(b));
Taking an adverse action (see Section 604(b), 15 U.S.C. § 1681b(b), and Section 615(a)), 15 U.S.C. §1681m(a);
Compliance for the trucking industry (see subsections (b)(2)(B), (b)(2)(c)), and (b)(3) of Section 604(b), 15U.S.C. § 1681b(b));
Using investigative consumer reports (see Section 606 of the FCRA, 15 U.S.C. § 1681d);
Investigating misconduct (see Section 603(y) of the FCRA, 15 U.S.C. § 1681a(x)).
Code: Select Code Section: CA Civil Code §1786Search
1785.20.
1785.20.1.
Up^ Add To My FavoritesCIVIL CODE - CIV
DIVISION 3. OBLIGATIONS [1427 - 3272.9] ( Heading of Division 3 amended by Stats. 1988, Ch. 160, Sec. 14. )PART 4. OBLIGATIONS ARISING FROM PARTICULAR TRANSACTIONS [1738 - 3273] ( Part 4 enacted 1872. )
TITLE 1.6. CONSUMER CREDIT REPORTING AGENCIES ACT [1785.1 - 1785.36] ( Title 1.6 repealed and addedby Stats. 1975, Ch. 1271. )
CHAPTER 3. Requirements on Users of Consumer Credit Reports [1785.20 - 1785.22] ( Chapter 3 added by Stats.1975, Ch. 1271. )
(a) If any person takes any adverse action with respect to any consumer, and the adverse action isbased, in whole or in part, on any information contained in a consumer credit report, that person shall do all ofthe following:
(1) Provide written notice of the adverse action to the consumer.
(2) Provide the consumer with the name, address, and telephone number of the consumer credit reportingagency which furnished the report to the person.
(3) Provide a statement that the credit grantor’s decision to take adverse action was based in whole or in partupon information contained in a consumer credit report.
(4) Provide the consumer with a written notice of the following rights of the consumer:
(A) The right of the consumer to obtain within 60 days a free copy of the consumer’s consumer credit reportfrom the consumer credit reporting agency identified pursuant to paragraph (2) and from any other consumercredit reporting agency which compiles and maintains files on consumers on a nationwide basis.
(B) The right of the consumer under Section 1785.16 to dispute the accuracy or completeness of any informationin a consumer credit report furnished by the consumer credit reporting agency.
(b) Whenever credit or insurance for personal, family, or household purposes involving a consumer is denied orthe charge for such credit is increased either wholly or in part because of information obtained from a personother than a consumer credit reporting agency bearing upon consumer’s credit worthiness or credit standing, theuser of that information shall, within a reasonable period of time, and upon the consumer’s written request forthe reasons for that adverse action received within 60 days after learning of the adverse action, disclose thenature and substance of the information to the consumer. The user of the information shall clearly and accuratelydisclose to the consumer his or her right to make such a written request at the time the adverse action iscommunicated to the consumer.
(c) No person shall be held liable for any violation of this section if he or she shows by a preponderance of theevidence that at the time of the alleged violation he or she maintained reasonable procedures to assurecompliance with this section.
(d) Nothing in this chapter shall excuse compliance with the requirements of Section 1787.2.
(Amended by Stats. 1992, Ch. 1194, Sec. 9. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
(a) Except as provided in subdivision (b), any person who uses a consumer credit report in connectionwith any credit transaction not initiated by the consumer and which consists of a firm offer of credit shall providewith any solicitation made to the consumer a clear and conspicuous statement as to all of the following:
(1) Information contained in the consumer’s prequalifying report was used in connection with the transaction.
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1785.20.2.
(2) The consumer received the offer of credit, because the consumer satisfied the criteria for creditworthinessunder which the consumer was selected for the offer.
(3) Where applicable, the credit may not be extended if, after the consumer responds to the offer, the consumerdoes not meet the criteria used to select the consumer for the offer.
(4) The consumer has a right to prohibit use of information contained in the consumer’s file with any consumercredit reporting agency in connection with any credit transaction that is not initiated by the consumer. Theconsumer may exercise this right by notifying the notification system or joint notification system establishedunder subdivision (d) or (e) of Section 1785.11.
(b) Subdivision (a) does not apply to any person using a prequalifying report if all of the following conditions aremet:
(1) The person using the prequalifying report is affiliated by common ownership or common corporate controlwith the person who procured the report.
(2) The person who procures the prequalifying report from the consumer credit reporting agency clearly andconspicuously discloses to the consumer to whom the report relates, before the prequalifying report is providedto the person who uses the report, that the prequalifying report might be provided to, and used by, personsaffiliated in the manner specified in paragraph (1) with the person that procured the report.
(3) The consumer consents in writing to this provision and use of the prequalifying report.
(c) No person shall be denied credit on the basis of the consumer’s refusal to provide consent pursuant toparagraph (3) of subdivision (b), unless that consent is necessary for the extension of credit, related to thattransaction, by an affiliate.
(Added by Stats. 1992, Ch. 1194, Sec. 9.5. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)
Any person who makes or arranges loans and who uses a consumer credit score as defined in Section1785.15.1 in connection with an application initiated or sought by a consumer for a closed end loan orestablishment of an open end loan for a consumer purpose that is secured by one to four units of residential realproperty shall provide the following to the consumer as soon as reasonably practicable:
(a) A copy of the information identified in subdivision (a) of Section 1785.15.1 that was obtained from a creditreporting agency or was developed and used by the user of the information. In addition to the informationprovided to it by a third party that provided the credit score or scores, a lender is only required to provide thenotice contained in subdivision (d).
(b) If a person who is subject to this section uses an automated underwriting system to underwrite a loan, thatperson may satisfy the obligation to provide a credit score by disclosing a credit score and associated key factorssupplied by a consumer credit reporting agency. However, if a numerical credit score is generated by anautomated underwriting system used by an enterprise, and that score is disclosed to the person, it shall bedisclosed to the consumer consistent with subdivision (c). For purposes of this subdivision, the term “enterprise”shall have the meaning provided in paragraph (6) of Section 4502 of Title 12 of the United States Code.
(c) A person subject to the provisions of this section who uses a credit score other than a credit score providedby a consumer reporting agency may satisfy the obligation to provide a credit score by disclosing a credit scoreand associated key factors supplied by a consumer credit reporting agency.
(d) A copy of the following notice, which shall include the name, address, and telephone number of each creditbureau providing a credit score that was used:
NOTICE TO THE HOME LOAN APPLICANT
In connection with your application for a home loan, the lender must disclose to you the score that a creditbureau distributed to users and the lender used in connection with your home loan, and the key factors affectingyour credit scores.
The credit score is a computer generated summary calculated at the time of the request and based oninformation a credit bureau or lender has on file. The scores are based on data about your credit history andpayment patterns. Credit scores are important because they are used to assist the lender in determining whetheryou will obtain a loan. They may also be used to determine what interest rate you may be offered on themortgage. Credit scores can change over time, depending on your conduct, how your credit history and paymentpatterns change, and how credit scoring technologies change.
1785.20.3.
Because the score is based on information in your credit history, it is very important that you review the credit-related information that is being furnished to make sure it is accurate. Credit records may vary from onecompany to another.
If you have questions about your credit score or the credit information that is furnished to you, contact the creditbureau at the address and telephone number provided with this notice, or contact the lender, if the lenderdeveloped or generated the credit score. The credit bureau plays no part in the decision to take any action on theloan application and is unable to provide you with specific reasons for the decision on a loan application.
If you have questions concerning the terms of the loan, contact the lender.
(e) This section shall not require any person to do the following:
(1) Explain the information provided pursuant to Section 1785.15.1.
(2) Disclose any information other than a credit score or key factor, as defined in Section 1785.15.1.
(3) Disclose any credit score or related information obtained by the user after a loan has closed.
(4) Provide more than one disclosure per loan transaction.
(5) Provide the disclosure required by this section when another person has made the disclosure to the consumerfor that loan transaction.
(f) Any person’s obligation pursuant to this section shall be limited solely to providing a copy of the informationthat was received from the consumer credit reporting agency. No person has liability under this section for thecontent of that information or for the omission of any information within the report provided by the consumercredit reporting agency.
(g) As used in this section, the term “person” does not include an “enterprise” as defined in paragraph (6) ofSection 4502 of Title 12 of the United States Code.
(Added by Stats. 2000, Ch. 978, Sec. 6. Effective January 1, 2001. Operative July 1, 2001, by Sec. 7 of Ch. 978.)
(a) Any person who uses a consumer credit report in connection with the approval of credit based onan application for an extension of credit, and who discovers that the consumer’s first and last name, address, orsocial security number, on the credit application does not match, within a reasonable degree of certainty, theconsumer’s first and last name, address or addresses, or social security number listed, if any, on the consumercredit report, shall take reasonable steps to verify the accuracy of the consumer’s first and last name, address, orsocial security number provided on the application to confirm that the extension of credit is not the result ofidentity theft, as defined in Section 1798.92.
(b) Any person who uses a consumer credit report in connection with the approval of credit based on anapplication for an extension of credit, and who has received notification pursuant to subdivision (k) of Section1785.16 that the applicant has been a victim of identity theft, as defined in Section 1798.92, may not lendmoney or extend credit without taking reasonable steps to verify the consumer’s identity and confirm that theapplication for an extension of credit is not the result of identity theft.
(c) Any consumer who suffers damages as a result of a violation of this section by any person may bring anaction in a court of appropriate jurisdiction against that person to recover actual damages, court costs, attorney’sfees, and punitive damages of not more than thirty thousand dollars ($30,000) for each violation, as the courtdeems proper.
(d) As used in this section, “identity theft” has the meaning given in subdivision (b) of Section 1798.92.
(e) For the purposes of this section, “extension of credit” does not include an increase in an existing open-endcredit plan, as defined in Regulation Z of the Federal Reserve System (12 C.F.R. 226.2), or any change to orreview of an existing credit account.
(f) If a consumer provides initial written notice to a creditor that he or she is a victim of identity theft, as definedin subdivision (d) of Section 1798.92, the creditor shall provide written notice to the consumer of his or herrights under subdivision (k) of Section 1785.16.
(g) The provisions of subdivisions (k) and (l) of Section 1785.16 do not apply to a consumer credit reportingagency that acts only as a reseller of credit information by assembling and merging information contained in thedatabase of another consumer credit reporting agency or the databases of multiple consumer credit reportingagencies, and does not maintain a permanent database of credit information from which new credit reports areproduced.
1785.20.5.
1785.21.
1785.22.
(h) This section does not apply if one of the addresses at issue is a United States Army or Air Force post officeaddress or a United States Fleet post office address.
(Amended by Stats. 2003, Ch. 41, Sec. 1. Effective January 1, 2004.)
(a) Prior to requesting a consumer credit report for employment purposes, the user of the report shallprovide written notice to the person involved. The notice shall inform the person that a report will be used, andshall identify the specific basis under subdivision (a) of Section 1024.5 of the Labor Code for use of the report.The notice shall also inform the person of the source of the report, and shall contain a box that the person maycheck off to receive a copy of the credit report. If the consumer indicates that he or she wishes to receive a copyof the report, the user shall request that a copy be provided to the person when the user requests its copy fromthe credit reporting agency. The report to the user and to the subject person shall be providedcontemporaneously and at no charge to the subject person.
(b) Whenever employment involving a consumer is denied either wholly or partly because of informationcontained in a consumer credit report from a consumer credit reporting agency, the user of the consumer creditreport shall so advise the consumer against whom the adverse action has been taken and supply the name andaddress or addresses of the consumer credit reporting agency making the report. No person shall be held liablefor any violation of this section if he or she shows by a preponderance of the evidence that, at the time of thealleged violation, he or she maintained reasonable procedures to assure compliance with this section.
(Amended by Stats. 2011, Ch. 724, Sec. 1. (AB 22) Effective January 1, 2012.)
(a) A user in its discretion may notify the consumer that upon request the user may contact theconsumer reporting agency and request that the consumer reporting agency investigate the current status of anitem or items of information contained in the consumer report if the consumer disputes the completeness oraccuracy of an item or items of information as provided to the user.
(b) The consumer credit reporting agency may require identification from the user to insure the validity of therequest and, in that regard, may require that the request be put in writing with proper identification.
(c) In the event that any such request is made and identification given in the form or manner demanded by theconsumer credit reporting agency, such agency shall review the file of the consumer and report the currentstatus of the disputed information to the user and the consumer by the most expeditious means possible.
(d) No user who furnishes information pursuant to this section shall be liable to any person for furnishing suchinformation.
(Added by Stats. 1976, Ch. 666.)
(a) A person may not procure a consumer credit report for the purpose of reselling the report or anyinformation therein unless the person discloses to the consumer credit reporting agency which issues the reportthe identity of the ultimate end user and each permissible purpose for which the report is furnished to the enduser of the consumer credit report or information therein.
(b) A person that procures a consumer credit report for the purpose of reselling the report or any informationtherein shall do all of the following:
(1) Establish and comply with reasonable procedures designed to ensure that the consumer credit report orinformation is resold by the person only for a purpose for which the report may be furnished under this title.These procedures shall include all of the following:
(A) Identification of each prospective user of the resold consumer credit report or information.
(B) Certification of each purpose for which the consumer credit report or information will be used.
(C) Certification that the consumer credit report or information will be used for no other purpose.
(2) Before reselling the consumer credit report or information, the person shall make reasonable efforts to verifythe identities and certifications made under paragraph (1).
(Added by Stats. 1992, Ch. 1194, Sec. 10. Effective January 1, 1993. Operative July 1, 1993, by Sec. 13 of Ch. 1194.)