We would like to take this opportunity to say thank you for allowing us to serve your background screening needs. As a part of our service, we focus on compliance with the Fair Credit Reporting Act. While this is a federal law and there are now many state laws and even local municipal laws that effect how you are able to use consumer reports, we would like to look at the Disclosure and Authorization Forms from a federal stand point.

We encourage you to speak with your general counsel to make sure that you are compliant with local and state laws wherever you may do business. We also offer a resource within the EZyCheck ordering system called the State Rules Registry. You can find access to it as soon as you long in and have to agree to terms.

Here is what the FCRA Section 604 states:

Disclosure to Consumer: In general. Except as provided in subparagraph (B), a person may not procure a consumer report, or cause a consumer report to be procured, for employment purposes with respect to any consumer, unless:

1. A clear and conspicuous disclosure has been made in writing to the consumer at any time before the report is procured or caused to be procured, in a document that consists solely of the disclosure, that a consumer report may be obtained for employment purposes; and
2. The consumer has authorized in writing the procurement of the report by that person.

Over the course of many lawsuits, we are observing a shift in the best business practice regarding the use of the Disclosure and Authorization Forms. While the FCRA allows for both forms to serve on one document, we are now advocating to separate these documents and have the Disclosure and Authorization Forms each as a stand-alone document. Plaintiffs Counsels are now seeing the ability to argue successfully that when you combine the two, you are unable to keep the document “solely” of the intent of the purpose of the Disclosure and/or Authorization.

It is our professional opinion to mitigate this by not giving the Plaintiffs Counsel the opportunity to even question what you are using. Even if it is our template, we are suggesting you speak with your general counsel about making the switch to our new Disclosure Form and Authorization Form.