FCRA Nightmares...

brown

I hope that I'm posting this in the right forum...here's the question - if Sister Corporation A does the criminal background checks for Sister Corporation B, providing the outcome of the investigation, is Sister Corporation A a "consumer reporting agency"? In this scenario, Sister Corporation A is simlpy calling the local police force and DMV for the information because Sister Corporation B does not have the resources, personnel or time to do the leg work.

Any thoughts are appreciated.

skyrocket

I haven't check the exact language used in the FCRA which defines "consumer reporting agency" - but I have the following:

1. Any employer utilizing a third party to conduct a background search MUST be familiar with the restrictions on such searches AND ensure that the third-party is also familiar with and complies with the restrictions. Any request to a third party contractor should be in writing, including a list of the information sought as well as the information that is prohibited.

2. I work for an insurance broker. When we write auto policies we do DMV checks. In this regard, we feel that we are acting as the "consumer reporting agency" and we do the required documentation and notification as result.

Since there is no "middle man" between the police department and the company doing the research, I think you would be in the same position as my company. The purpose of defining the consumer reporting agency is so that the individual being "checked" knows where the information came from and can correct erroneous records found and held by that agency.

TedK

In WI we can go online and do a check through the WDOJ in about 2 minutes. We resently had a potential problem with an ee so I emailed the WDOJ to find out if I had to treat them as a CRA. They replied that I should.
This made me think that unless I went down there and looked through the records myself it would always be considered receiving information from a CRA.