The Fair Credit Reporting Act (FCRA)
Enacted in 1970, the Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer information in background check reports – officially called “consumer reports” – that are supplied by Consumer Reporting Agencies (CRAs) – the official term for background check firms. The FCRA requires that CRAs "follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." The law also covers other various aspects of background screening for employment purposes.
Additional FCRA Resources
The Federal Trade Commission (FTC) and U.S. Equal Employment Opportunity Commission (EEOC) provide information on how to comply with the FCRA when performing background checks.
Fair and Accurate Credit Transactions Act of 2003
The Fair and Accurate Credit Transaction Act of 2003 (FACTA or FACT ACT) is a federal law passed by the United States Congress that amended the Fair Credit Reporting Act (FCRA).
- The Fair and Accurate Credit Transaction Act of 2003 (PUBLIC LAW 108–159—DEC. 4, 2003)
- Information on the Fair and Accurate Credit Transaction Act (FACTA) of 2003
State Laws for Background Screening