Latest FACT Act Rule Has implications for HR Departments that Provide Employment Verifications to Background Screening Firms

Posted by admin on June 25, 2010 under Client Alerts | Comments are off for this article

The Federal Trade Commission’s final regulations that relate to the obligations of furnishers who provide information to consumer reporting agencies (CRA) goes into effect next Thursday, July 1st. Under the Fair and Accurate Transaction Act (FACT Act), which amended the Fair Credit Reporting Act, companies that provide information to CRA’s are required to establish written policies regarding the “accuracy and integrity” of information furnished to the CRA. This includes employers who provide reference/employment verification or other information about their current and former employees to background screening companies.

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