Definition - What does summary of your rights under the fair credit reporting act mean?
A summary of your rights under the Fair Credit Reporting Act (FCRA) is a succinct description covering details about accurate, fair, and current consumer history information. Consumer reporting agencies are obligated to comply with FCRA standards when releasing credit reports and/or credit scores to third parties such as creditors, employers or insurers.
SureHire explains summary of your rights under the fair credit reporting act
Credit bureaus and other consumer report agencies represent their clientele in the capacity of maintaining and updating credit documents to preserve good financial standing. People are entitled to basic rights including comprehensive knowledge of all files, credit score receipt(s), litigious privileges against unauthorized access (i.e. identity theft), and written consent to employers for review. Credit reports are used as a general criterion to determine the creditworthiness of a particular individual when applying for loans or, in some cases, seeking career opportunities.
Although a credit report history may be a component in a background check process, companies have limited access to a credit report while a credit score is omitted. The underlying basis for employers to analyze a credit report is to evaluate critical aspects that often dictate liability risks where personal responsibility is concerned. For instance, individuals who file bankruptcy or have a list of outstanding debts can indicate indiscretions that can result in automatic disqualification in the fields of financing, law, or medicine. However, according to FCRA guidelines, an employer must alert in writing a refusal of employment to a candidate when the credit report is a deciding factor.
It is important for job applicants to observe the summary of their rights under the Fair Credit Reporting Act to avoid discrimination and/or protect themselves against identity theft.
