FCRA’s Latest Amendment: Ensuring Compliance for Background Checks
The Fair Credit Reporting Act (FCRA) Section 605(C), amending Regulation V, came into effect on July 25, 2022. The amendment, issued by the Consumer Financial Protection Bureau (CFPB), aims to block adverse information identified by human trafficking survivors. As an employment screening company, Corporate Intelligence Consultants (CIC) is committed to helping our clients understand the implications of this rule and maintain compliance when conducting background checks on potential employees.
Human Trafficking and Employment Screening
Human trafficking survivors often face numerous challenges when trying to reintegrate into society, as they typically have criminal records and bad credit due to their exploiters’ actions. These negative records can prevent survivors from accessing job opportunities, housing, and other essential services. The CFPB’s amendment aims to help survivors overcome these barriers by working with Consumer Reporting Agencies (CRAs) to block adverse information about their trafficking experiences.
CIC Compliance Requirements
To comply with the new rule, CIC must adhere to several requirements, including responding to victims’ requests to block information within four business days and providing a convenient submission process for victims. This includes dedicated mailing addresses, a website, a secure online portal, a dedicated toll-free number, and clear instructions on our website on how to submit requests.
CIC cannot verify facts or circumstances of adverse information or determine a victim’s status. We may only decline or rescind the blocking of information if the victim fails to provide personal identification, trafficking documentation, or identification of specific adverse information to be blocked.
Retention and Confidentiality Obligations
CIC must retain information regarding blocking requests for seven years from receipt, establish written policies and procedures, and provide specifically trained staff to process requests and answer questions. Additionally, we are prohibited from communicating with our clients (employers) about blocked information or the applicant’s trafficking victim status.
The Importance of Compliance
The CFPB’s new rule is effective immediately. All CRAs and employment screening providers must comply. By doing so, we have the opportunity to help human trafficking survivors start over and build a new life for themselves outside of the exploitative environment they were trapped in.
Supporting Human Trafficking Survivors Beyond FCRA Compliance
Apart from complying with the FCRA’s latest amendment, there are additional ways in which employers can contribute to supporting human trafficking survivors:
- Partner with Organizations: Collaborate with non-profit organizations and advocacy groups supporting human trafficking survivors.
- Offer Employment Opportunities: Provide job opportunities to survivors and offer internships or vocational training programs tailored to their needs.
- Promote Awareness and Education: Raising awareness about human trafficking is essential to preventing future exploitation.
- Support Legislation: Advocate for stronger anti-trafficking legislation on both the state and federal levels.
- Encourage Corporate Social Responsibility: Adopt and promote ethical business practices, including supply chain transparency.
- Provide Financial Assistance: Establish scholarship funds or financial assistance programs to help survivors access education and job training.
- Foster a Supportive Work Environment: Create a supportive and understanding work environment for human trafficking survivors.
Compliant Employment Screening – Partner with CIC
As your trusted employment screening partner, CIC is committed to helping you maintain compliance with the latest FCRA amendments and support human trafficking survivors. We encourage you to implement these best practices and create a safer, more inclusive workplace for all employees.