FCRA governs the use of third party credit reporting agencies to investigate the background of applicants for employment and imposes notice requirements for employers as well as monetary penalties for failure to comply with its provisions. Employers are required to take certain actions whenever they obtain a consumer credit report on a job applicant or employee.  These include notification, certification, action before and after an adverse event.

In September 1997, FCRA was amended to include employment background checks. A background screening report is classified as a consumer report or investigative consumer report. NPC's that proceed with background checks must certify that it is for a lawful purpose under FCRA and each applicant must agree to the screening in a signed authorization naming the employer and the provider of the report. The applicant is entitled to challenge the accuracy of the report through a complaint resolution program.

• http://www.epic.org/privacy/financial/fcra.html

• http://www.ftc.gov/os/statutes/fcrajump.htm