Know Your Rights

Credit Reporting Agencies for Employment Background Checks

Consumers should be aware that you are supposed to review your credit report on a regular basis to ensure the information reporting on them is accurate.  Most consumers however are not aware of the fact that there are more than just the three major credit reporting agencies out there reporting your personal information that can have a great effect on their lives. 

Under the new amendments to the Fair Credit Reporting Act ("FCRA"), during an employment background check, the employer is required to provide  notice that they are going to access a persons credit file to obtain personal information during the interview process.  You must provide the employer with written consent to access your information.  The catch is, even if you accessed your credit report prior to submitting a job application to assure the accuracy of the information reporting, it may not be the same information your potential boss is obtaining.     

Since employment background checks have become a major factor in the employment field, companies like Equifax Workforce Solutions ("EWS"), a subsidiary of the credit bureau Equifax, have been established for the sole purpose of verifying employment history and income information of applicants.  EWS obtains its information on consumers directly from its employer clients and is a separate business from the credit bureau.  The service was created to assist employers requesting salary and employment history information of job applicants.  

Employers provide EWS with payroll data and employment history and then make it available for a fee to other entities authorized to receive the private information, including employers, banks and collection agencies.  EWS states it is in compliance with the FCRA and that it provides your personal information only to those requesting it with a legitimate purpose.  It further states that it must have the consumer's written consent prior to turning over the information.  EWS claims accuracy of its data as each consumer's information is maintained by the employer who provides it to EWS and it is not distributed to any other background checking company.    

Unfortunately, unlike with credit reporting agencies, there are no websites set up for you to obtain a free copy of the information reporting on your salary and employment history, but you can however go to each of these companies and request a copy of your information.  The report will likely include all employment records the company has on file for you and will report any companies that have requested your data over the last two years.   

If you are having issues with your credit report or need additional information on employment background checks contact SmithMarco P.C. for a free case review. 

+ Add CommentNo Comments
Name (required)
E-mail (will not be published) (required)
Want to share a link?