CFPB Completes Supervisory Highlights Study.
The CFPB has released the results from its Supervisory Highlights Study that was recently completed. CFPB auditors looked at Consumer Reporting Agencies (CRAs) and other companies that furnish information for pre-employment and credit related background checks.
Although the report did say that advances have been made in the accuracy of information provided by pre-employment screening companies and credit providers, it did highlight some problems when it came to these agencies being compliant:
Data Accuracy – CRAs are mandated to provide the most accurate information possible. Best Practices include that the information be “fresh,” meaning that it has come straight from the source. For example, information obtained from third parties or databases, must be confirmed on a county level (or the level most likely to be accurate).
Dispute Handling and Resolution – Notices to furnishers of information must be provided when a dispute is made. Furthermore, the consumer must also be notified (clearly) of the outcome of the dispute.
Permissible Purpose Requirements – Authorization must be obtained from any consumer prior to conducting a background check. Very few exceptions apply. The authorization must meet state and federal guidelines.
Other areas of inquiry were also highlighted and can be viewed here.
Employers Investigative Services has addressed these highlights. For example; written policy does not allow for us to release database information to a client without first having it confirmed at the most direct level. Furthermore, dispute resolution handling has been in place and is strictly adhered to.
If you have any questions about how your data provider or background screening firm handles these issues, or any others, please feel free to contact us at www.eischecks.com/contact
Employers Investigative Services is a nationwide provider fast, affordable and effective background checks and drug testing to small and mid-sized businesses. Drug Testing, Occupational Health and Compliance are all handled in house. Contact them at the above website or toll free at (866) 350-5638.