A Consumer Reporting Agency May Furnish Reports Fo

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PresentationtoNational Conference on Privacy,
Technology Criminal Justice Information
TOPIC Should Commercial Providers of Background
Information be Regulated?
Presented by Peter L. ONeill, Esq., Chief
Executive Officer CARCO Group, Inc.
Washington, DC June 1, 2000
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Consumer Report
Employer (1st Party)
Applicant/ Employee (2nd Party)
Consumer Reporting Agency (3rd Party)

• Investigation must be conducted by 3rd party
• Investigations of Applicant conducted by Employer
• Are not consumer reports
• are not governed by FCRA

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Consumer Report

• EDUCATION
• EMPLOYMENT
• PROFESSIONAL LICENSES
• OTHER PUBLIC RECORDS

• CRIMINAL/CIVIL
• CREDIT
• MOTOR VEHICLES
• PERSONAL REFERENCES

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A Consumer Reporting Agency May Furnish Reports
For (Permissible Purposes)

• Otherwise legitimate business need for the
  information--in connection with business
  transaction initiated by consumer
• Response to head of state for child support
• Agency administered by Social Security Act
• (FCRA Sect. 604)

• Court order or subpoena
• Credit transaction involving consumer
• Employment purposes
• Underwriting of insurance
• License or other benefit granted by government
• As potential investor, servicer, insurer, with
  valuation, assessment of credit

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FAIR CREDIT REPORTING ACT CONSUMER DISCLOSURE
AND GENERAL AUTHORIZATION In connection with my
application for employment with
_____________________________ (Company) I
understand that a consumer report or
investigative consumer report, as those terms are
defined in the federal Fair Credit Reporting Act
as amended (FCRA), 15 U.S.C. 1681 et seq., may
be obtained by the Company from a consumer
reporting agency (Agency). I further
understand that the Agency may not give out
information about me to the Company without my
written consent. It is also understood that the
Agency may not report medical information about
me to the Company without my specific prior
consent as to the release of such information,
which is in addition to my general authorization
herein. I understand that an investigative
consumer report is a special type of consumer
report in which information about my character,
general reputation, personal characteristics, and
mode of living is obtained through personal
interviews. In the event an investigative
consumer report is obtained, I understand that I
(a) am entitled to receive a summary of my
rights, and (b) have the right to request
additional disclosures provided for below as
follows Upon my written request to the Company
within a reasonable period of time after my
receipt of this Fair Credit Reporting Act
Consumer Disclosure and General Authorization,
the Company shall make a complete and accurate
disclosure of the nature and scope of the
investigation requested. It is understood that
this disclosure shall be made in writing mailed,
or otherwise delivered, to me not later than five
(5) days after the date on which the request for
such disclosure was received from me or such
report was first requested, whichever is later in
time. I hereby authorize the Company now, or at
any time while I am employed by the Company, to
obtain a consumer report or investigative
consumer report on me, as applicable. This
authorization does not include the release of my
medical information. I further acknowledge that
I have received a summary of my rights under the
FCRA. __________________________________________
_______________________ Applicant
Signature Todays Date _______________________
___________________ _____________________________
____ Printed Name Social Security Number
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PRE-ADVERSE ACTION NOTICE CONSUMER REPORT Dear
Mr./Ms. (Applicants last name) In connection
with your application for employment, you
authorized ________________ to obtain a consumer
report on you. Depending upon the position for
which you applied, the consumer report included
one or more of the following elements Criminal
History record Credit Report and Social
Security Number Trace. Pursuant to the federal
Fair Credit Reporting Act (U.S.C. 1681 et. seq.),
we are required to inform you that the
information contained in the consumer report may
prevent you from obtaining employment with our
organization. You will be notified after ___ days
following your receipt of this notice of our
decision regarding your potential employment. A
copy of the consumer report prepared on you is
attached. In addition, please find a written
summary of your rights under the Fair Credit
Reporting Act. Please contact us if you have any
questions regarding this matter. Sincerely, _____
____________________ Enclosures
Sample
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ADVERSE ACTION NOTICE FOR CONSUMER REPORT
Dear Mr./Ms. (Applicants last name)
Several days ago we notified you of the
possibility that your application with
_______________ might not be favorably
considered. Unfortunately, we have made a
decision not to extend an offer of employment to
you based in whole, or in part, on information
contained in the consumer report which you
authorized us to obtain (a copy of which was
included in our first notice to you). The
following consumer reporting agency furnished the
consumer report ABC REPORTING 123 MAIN
STREET DOWNTOWN, USA 12345 TOLL FREE
1-800-555-1234 Please be advised ABC
Reporting did not make the decision to take this
action and will be unable to provide you with the
specific reasons why you were not hired. You
have a right to obtain a free copy of the
consumer report which ABC Reporting prepared on
you, provided your request is received by ABC
Reporting within sixty (60) days of receipt of
this notice. You also have the right to dispute
the accuracy or completeness of any information
contained in the report by contacting ABC
Reporting directly. Thank you for your
interest in our company and we wish you success
in your future employment endeavors.

Sincerely,
Sample
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The FCRA gives several different federal agencies
authority to enforce the FCRA