Can an Employer Obtain an Employee's Credit Report, and Under What Conditions?

As a general rule, an employer is not permitted to obtain an employee’s credit report without express permission from the employee. If a Credit Reporting Agency (CRA), such as a private investigation firm that assists with background checks, unlawfully releases protected credit information, you may have a claim for damages under the Fair Credit Reporting Act (FCRA).

Contact an experienced FCRA litigation attorney at the Law Offices of Jibreal S. Hindi immediately if you suspect a CRA released an unauthorized credit report to your employer or prospective employer.

Lawful Ways to Obtain an Employee’s Credit Report Under the FCRA

Employers may not generally use a consumer report to make a hiring, firing, reassignment, or promotion decision without complying with the FCRA. The Fair Credit Reporting Act requires an employer or prospective employer to take the following steps before obtaining your credit report:

• Written Notice: The employer must provide the applicant or employee with written notice that the information contained in a consumer report may be used to make employment decisions. This notice must be separate from the employment application and cannot contain information that distracts the employee from the notice itself. 
• Express Permission: In addition to providing notice, the employer must get the employee’s written permission to obtain the credit report. Any oral permission given must also be certified in writing. 
• Certification: The employer must certify with the CRA providing the credit report that it obtained the employee’s written permission to obtain the report, provided proper notice, complied with all FCRA requirements, and will not unlawfully discriminate against the employee or misuse the information provided. 

You may fairly be denied employment or promotions if you refuse to give the employer permission to obtain a credit report. However, employers must provide notice with a copy of the consumer report they relied on in making adverse employment decisions, along with a copy of your rights under the FCRA.

Taking Adverse Employee Action Based on a Lawfully Obtained Credit Report

Even if an employer had written permission to obtain your credit report, it must provide you with detailed information if the report was used to make a negative employment decision. This adverse action notice must contain the name, address, and number of the CRA that supplied the report and notify you of your right to dispute inaccurate or incomplete credit information. You must also be notified of your right to obtain a free credit report from that company within 60 days of the adverse employment action. You may be entitled to damages under the FCRA if an employer or prospective employer violated these provisions or a CRA failed to correct inaccuracies, causing you financial harm.

Contact an Experienced FCRA Consumer Protection Lawyer Today

If you believe an employer or prospective employer violated the above consumer report rules, you may have a claim for damages. You might also have a substantial claim for financial harm against a CRA for reporting inaccurate and incomplete credit information costing you a valuable job or promotion. Discuss your potential FCRA claims with dedicated national consumer protection lawyer Jibreal S. Hindi by calling 844-542-7235 or contacting us online.