FCRA compliance & disclosures

1. About the Fair Credit Reporting Act

The Fair Credit Reporting Act (FCRA), 15 U.S.C. §1681 et seq., is the federal law that governs the collection, dissemination, and use of consumer information, including consumer reports used for employment screening. Information Direct operates as a consumer reporting agency (CRA) under the FCRA and is committed to full compliance with all applicable provisions.

As a CRA, we are responsible for following reasonable procedures to assure maximum possible accuracy of the information in consumer reports, and for providing consumers with the ability to dispute and correct inaccurate information.

2. Permissible purposes

Under FCRA §1681b, consumer reports may only be obtained for specific permissible purposes. For employment screening, the employer must: (a) certify that the report will be used for employment purposes, (b) provide a clear and conspicuous written disclosure to the consumer that a report may be obtained, and (c) obtain the consumer's written authorization before requesting the report.

Information Direct verifies that all clients have a permissible purpose before furnishing any consumer report. We require clients to execute a service agreement certifying FCRA compliance as a condition of access to our services.

3. Consumer disclosure and authorization

Before a consumer report is obtained for employment purposes, the FCRA requires that the consumer receive a standalone written disclosure that a consumer report may be obtained. This disclosure must be in a document that consists solely of the disclosure and must not include extraneous information. The consumer must provide written authorization before the report is requested.

If an investigative consumer report is requested, additional notice and disclosure rights may apply, including notice that the consumer may request information about the nature and scope of the investigation. Clients must certify that those investigative-report requirements are satisfied before requesting covered services.

Information Direct provides clients with compliant disclosure and authorization forms and can integrate these workflows into your hiring platform.

4. Adverse action process

If an employer intends to take adverse action (such as denying employment) based in whole or in part on information in a consumer report, the FCRA requires a two-step process:

Step 1 - Pre-adverse action notice: Before taking adverse action, the employer must provide the consumer with (a) a copy of the consumer report, and (b) a copy of "A Summary of Your Rights Under the Fair Credit Reporting Act" as prescribed by the CFPB. Download the current CFPB model form at /summary-of-rights-fcra.pdf.

Step 2 - Final adverse action notice: After a reasonable waiting period (typically 5 business days), if the employer proceeds with adverse action, the consumer must receive notice that includes: the name, address, and phone number of the CRA that supplied the report, a statement that the CRA did not make the adverse decision, notice of the consumer's right to obtain a free copy of the report within 60 days and to dispute its accuracy, and any CFPB or agency contact information required by the current model notice or applicable law.

Information Direct's platform includes a built-in adverse action workflow that automates both steps, generates compliant notices, and tracks required waiting periods.

5. Consumer rights

Under the FCRA, consumers have the following rights:

Right to know what is in your file: You may request disclosure of all information in your consumer file. Right to dispute inaccurate information: If you identify information you believe is inaccurate, you may dispute it directly with the CRA or directly with the furnisher of the disputed information when applicable. The CRA must investigate within 30 days unless a longer period is permitted by law. Right to have inaccurate information corrected or deleted: If information is found to be inaccurate or cannot be verified, it must be promptly corrected or deleted. Right to know who has accessed your report: You may request a list of everyone who has requested your consumer report within the past year (two years for employment purposes). Right to a free report after adverse action: If adverse action is taken against you based on a consumer report, you are entitled to a free copy of that report within 60 days. As a specialty consumer reporting agency, we also provide eligible free file disclosures as required by law, including applicable annual disclosure rights and other free disclosure rights for unemployment, public assistance, fraud, or other qualifying circumstances.

6. Dispute process

If you believe that a consumer report prepared by Information Direct contains inaccurate information, you may submit a dispute by: calling (800) 707-2450, emailing disputes@informationdirect.us, or writing to Information Direct, Inc., Attn: Disputes, 1519 E Chapman Ave #342, Fullerton, CA 92831.

Upon receiving a dispute, we will: (1) note the dispute in your file, (2) conduct a reinvestigation within 30 days unless a longer period is permitted by law, (3) notify the furnisher or source of disputed information within five business days after receiving the dispute when the FCRA requires source participation, (4) provide that furnisher or source with all relevant dispute information we received, (5) provide you with written results of the reinvestigation within the timeframe required by the FCRA, including the 5-business-day notice requirement after completion where applicable, and (6) if information is found to be inaccurate, correct or delete it and notify any party that received the report within the preceding two years.

7. Request your consumer file

Consumers may request a file disclosure that contains the information Information Direct maintains about them, subject to identity verification and applicable law. Email disclosures@informationdirect.us, call (800) 707-2450, or write to Information Direct, Inc., Attn: Consumer File Request, 1519 E Chapman Ave #342, Fullerton, CA 92831. Do not send Social Security numbers through email. We will provide secure instructions if additional identity verification is required.

8. Public record reporting procedures

When consumer reports include public record information that may have an adverse effect on employment, Information Direct follows strict procedures designed to ensure public record information is complete, up to date, and matched to the consumer before it is reported. Where a covered notice obligation applies, we either provide the required consumer notice at the time public record information is reported or apply strict public-record accuracy procedures as permitted by the FCRA and applicable state law.

9. Motor vehicle records and DPPA

Motor vehicle record services are provided only for a legally permissible purpose and only where the requester has the authorization or other basis required by the Driver Privacy Protection Act and applicable state motor vehicle record rules. Clients are responsible for certifying the permissible purpose and consumer authorization before requesting MVR services.

10. EEOC guidance compliance

In addition to FCRA compliance, Information Direct supports clients in meeting Equal Employment Opportunity Commission (EEOC) guidance on the use of criminal records in employment decisions. The EEOC recommends individualized assessments that consider the nature of the offense, the time elapsed, and the nature of the job. Our reports are structured to facilitate this analysis.

11. State and local requirements

Many states and municipalities have enacted laws that supplement the FCRA with additional requirements for employment screening. These include ban-the-box laws, state-specific disclosure requirements, waiting period rules, individualized assessment rules, salary-threshold rules, credit-report restrictions, CORI access rules, and restrictions on the use of certain record types. Information Direct maintains compliance workflows for applicable state and local requirements, including California ICRAA/CCRAA and fair chance requirements, New York Article 23-A and the NYC Fair Chance Act, Illinois Employee Credit Privacy Act restrictions, Massachusetts CORI Reform requirements, and other applicable state consumer reporting laws. A practical overview is available at /compliance/fair-chance-hiring.

12. Our compliance commitment

Information Direct is a member of the Professional Background Screening Association (PBSA, formerly NAPBS) and adheres to industry best practices for accuracy, fairness, and consumer protection. Our compliance team monitors regulatory changes at the federal, state, and local levels and updates our processes accordingly.

For compliance questions, contact our compliance team at compliance@informationdirect.us or call (800) 707-2450.