The Fair Credit Reporting Act (FCRA) (15 U.S.C. § 1681 et seq.) is a federal law that protects consumers’ credit information and how it is used. The FCRA also promotes accuracy and fairness in consumer reporting.
According to the FCRA, A Consumer Report includes a Background Check Report, and thus applies to firms that conduct backgrounds, the reports they produce and employers.
The Act (Title VI of the Consumer Credit Protection Act) protects information collected by consumer reporting agencies such as credit bureaus, medical information companies, and background screening services. Information in a consumer report cannot be provided to anyone who does not have a purpose specified in the Act. Companies that provide information to consumer reporting agencies also have specific legal obligations, including the duty to investigate disputed information. In addition, users of the information for credit, insurance, or employment purposes must notify the consumer when an adverse action is taken based on such reports. The Fair and Accurate Credit Transactions Act added many provisions to this Act primarily relating to record accuracy and identity theft. The Dodd-Frank Act transferred to the Consumer Financial Protection Bureau most of the rulemaking responsibilities added to this Act by the Fair and Accurate Credit Transactions Act and the Credit CARD Act, but the Commission retains all its enforcement authority.
Section 603(d)(1) defines “consumer report” to mean “any written, oral, or other
communication of any information by a consumer reporting agency bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for (A) credit or insurance to be usedprimarily for personal, family, or household purposes; (B) employment purposes; or (C) any other purpose authorized under section 604”FCRA 603(d)(1)
See below the link to the FCRA and