(taken from an earlier post first published in 2016)

The FCRA §603(e) defines an Investigative Consumer Report (an ICR) as “a report or portion thereof in which information on a consumer’s character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information…”

Personal or professional reference verification and employment verification that stray beyond the realm of facts and into personal character assessments and opinions are considered Investigative Consumer Reports. They can be independent background checks, or they could be a part of a regular consumer report.

In California, all consumer reports are considered ICRs, and California law (the California Investigative Consumer Reporting Agencies Act ICRAA) must be followed in addition to federal law.

What are the compliance requirements for running an investigative consumer report?

An Investigative Consumer Report requires a separate disclosure as to the nature and scope of the report and separate authorization. When an ICR is part of a regular consumer report, the disclosure with an explanation of the spirit and scope of the investigative portion must be obtained separately from the disclosure for the consumer report. There must also be a notice with the disclosure that complete and detailed disclosure of the nature and scope of the investigation can be obtained upon request.

Authorizations can be combined, but with the separate disclosure requirement, it is easier to utilize a disclosure and authorization form for the consumer report and a separate one for the ICR. That way, if the ICR is obtained alone, you already have the required disclosure and authorization ready to go.

If obtaining potentially adverse information from interviews with neighbors, friends, or associates, the CRA performing the ICR must verify that the information provided has been verified or that the person providing the information is the “best possible source of the information.” FCRA §606(d)(4)(B)

Additionally, §614 stipulates that any adverse information obtained through ICR personal interviews must be obtained within a three-month period of the report being provided to the party requesting such background check, typically an employer.

Why would companies want to run these checks on potential employees?

Investigative Consumer Reports are common opinions of those with a personal relationship or a person who has immediate knowledge of the applicant. This information goes beyond a typical consumer report for a picture of your applicant in a more personal light than information obtained from a consumer report does not. For example, information obtained in a typical consumer report may include credit information, criminal history, factual past employment information, or driving records.

An ICR would ask about a person’s job performance if it is a professional reference and the best source of information, or how a person gets along with others in a work setting. This information cannot be gleaned from a consumer report, and if done correctly, can give a potential employer more insight into an applicant’s character, work habits, and personal characteristics.

Are there risks associated with running an investigative consumer report?

There are risks involved in running any consumer report. As Investigative Consumer Reports require additional authorization and disclosure, compliance can be tricky when the employer doesn’t understand or want the hassle of following the additional requirements, and simple mistakes can occur. Both negligent and willful violations of FCRA compliance can result in a substantial fine for each instance if a lawsuit is brought against the employer or against the CRA providing the information to the employer.

How are the people chosen for the personal interviews?

Employment verification relies on information from records obtained, as often as possible, directly from the human resources department, payroll, or the owner/operator of the company. From there, if non-factual information is being requested (such as the opinion of the employer about the applicant), it is obtained from the owner/operator or a supervisor who would have direct knowledge of the applicant’s work experience.

Professional or personal references conducted by Blueline Services are conducted with the people provided by the applicant as references. Upon request, some references are found by asking the provided reference if they know anybody who would be able to answer the same questions about the applicant (references from references).

The post What is an Investigative Consumer Report? appeared first on Blueline.

We wanted to remind you that beginning in January your background check applicants will start receiving 613 Letters.

The basic premise of this is that we will notify applicants when any matter of public record is found on a background check that may affect their hiring or promotion. This new practice will have little to no impact on you as an employer.

This is deemed a “best practice” policy that will help you as a client stay on the right side of any employee/applicant challenge or complaint as it pertains to background checks.

One adjustment that will need to be made with this new policy is making sure a space is added to ask for email addresses from all applicants/employees for background checks beginning on January 1st 2020. This will allow Blueline Services to manage the reporting and compliance aspect of the 613 Letter.

A new authorization form with an added email address field is available in our system under the HELP tab. You should be able to download the new form there.

If you have any questions regarding this letter, please feel free to reach out to our backgrounds team at backgrounds@blueline-services.com.

Thank you,

The Blueline Services Team

The post REMINDER: 613 Letters to begin next month! appeared first on Blueline.

The only potential adjustment will be the need for an email address for all applicants/employees (on background checks requested after January 1st, 2020) which will allow Blueline Services to manage the reporting and compliance aspect of the 613 Letter. This notice will go to the applicant or employee at the same time the potentially adverse information is reported to you the employer.

Great Data + Speed + Compliance is the formula for awesome background screening, and we have you covered!

Respectfully,

Blueline Services

The post FCRA Compliance: 613 Letters appeared first on Blueline.