info@carolinalaw.com
info@carolinalaw.com
Employers frequently obtain a copy of your consumer report to run a background check before hiring an employee or for other employment purposes. These consumer reports will often contain employment history, criminal history, etc. It is lawful for employers to do this, but specific steps must be followed under the Fair Credit Reporting Act (FCRA) to make an employment decision based on credit. There are concerns about the invasion of your privacy and that of your family, and corporations must follow those steps if they want to investigate you.
In some circumstances, an employer can use consumer reporting information to take adverse action against you. This includes failure to hire, suspension, demotion, pay cut, or even termination. However, the FCRA demands that the company disclose that they are considering that option BEFORE taking any of these actions. Additionally, a company cannot have decided to terminate, demote, suspend, cut the pay, or fail to hire the employee before allowing the employee to respond.
Because credit reporting errors are all too common, consumers must have the right to know what is in their files and dispute inaccuracies. Therefore, a business must give a copy of that consumer report and a summary of the employee’s rights under FCRA. Then, the worker must have a reasonable amount of time to investigate and follow up on the information. After investigations and corrections, the business must provide written notice that the action was taken based on information in that report.
Credit reporters and background check services are frequently over-inclusive about data and information in reports. An individual with a similar name or social security number might have their criminal charges included in your record. A family member’s credit issues might be included with yours. These types of background check issues are not acceptable. Consumer reporters must use reasonable procedures to ensure your private information’s maximum possible accuracy.
The Fair Credit Reporting Act (FCRA) of 1970 is a crucial law in the U.S. that safeguards consumer rights. It aims to guarantee the accuracy, fairness, and privacy of information maintained by consumer reporting agencies. If issues on a consumer report cost you employment, the FCRA provides you legal recourse to pursue compensation. Therefore, it’s important to understand your rights and seek assistance from a knowledgeable consumer protection attorney if violations occur.
Businesses cannot make an employment decision based on credit checks without giving you a fair chance to clear up the misunderstanding. Employers also cannot run a consumer report or a background check without clarifying that they will do so.
Our firm handles cases where our clients have an employment decision based on credit checks or due to an inaccurate criminal record. We take FCRA cases on a contingency basis, meaning no attorney fees are owed unless we recover compensation for you. Our team of experienced credit reporting attorneys can provide you with the legal support you need. Contact us for a free consultation. We represent clients across North and South Carolina from our offices in Raleigh, Charlotte, and Fayetteville.