Fair Credit Reporting Act (FCRA) amendment

types of background checks available to landlords and companies, such checks are an integral way they ensure that their tenants or franchisees are honest and reliable. However, should you perform a credit check on an individual and find a problem, the rules have now changed. If you use a credit score and take adverse action — as of July 21st you must provide an adverse action notice to the applicant or employee containing disclosures currently required under the FCRA, and in addition, provide the new FCRA adverse action and disclosure requirements for credit scores. The following new notification requirements will apply: · The date on which the credit score was created (the order date) · The name of the person or entity that provided the credit score (FICO – Fair Isaac Corporation) · The key factors, listed in order of importance, which adversely affected the score of the consumer in the model used · The range of possible credit scores under the model used (Classic FICO; 300-850) This change to the FCRA is one of many enacted as a result of last year’s Dodd-Frank Wall Street Reform and Consumer Protection Act. We are providing you with this information so you can  comply with the new FCRA credit disclosure requirements as of July 21st, 2011. For more information regarding credit checks or the new FCRA ruling, get in touch with Mind Your Business, Inc.]]>