Blog Information

• Posted By : Alex Carey
• Posted On : Nov 28, 2022
• Views : 180
• Category : Cars
• Description : Failure to comply with FCRA regulations can result in hefty fines and troublesome lawsuits. Here’s what you need to know.

Overview

• If your business hires drivers, you’re regularly running motor vehicle reports. Certainly, you’re running pre-employment MVRs prior to hiring anyone who will be operating a motor vehicle for your business.
  
  

  And, if your business is regulated by the Department of Transportation, you’re also running repeat reports annually. You might be inclined to run online motor vehicle reports on your own, but, because MVRs are consumer reports, they are regulated by the Fair Credit Reporting Act (FCRA). Failure to comply with FCRA regulations can result in hefty fines and troublesome lawsuits. Here’s what you need to know:
  
  

  Intro to the FCRA

  The FCRA was passed in the 1970s in order to protect the privacy of personal information and ensure fairness and accuracy when that information is collected and used. It governs how and when organizations can collect and share data and gives consumers specific rights and access to their own information.
  
  

  Before you or your representative requests an MVR on a candidate or employee, you need to be clear on FCRA regulations that direct everything from notifying an individual that an MVR is being checked to disposal of the information once it’s no longer needed and everything in between.
  
  

  Compliance highlights include the following:

  • Employers must disclose to the individual that an MVR is being requested. This disclosure must be given independent of any other paperwork and stand on its own. The language in the disclosure is very specific and needs to be clear. You also need to disclose your intention to run periodic repeat reports if that’s what you mean to do.
  • Employers must receive authorization from the individual that they were notified of the MVR check and that they consent.
  • Employers must provide candidates and employees with a copy of “Summary of Your Rights Under the Fair Credit Reporting Act.”
  • Employers must follow very specific steps in the event that an adverse action needs to be taken as a result of information revealed in an MVR. Adverse actions include rescinding a job offer, denying a promotion, or terminating employment and must be accompanied by pre adverse and adverse notifications as well as information regarding rights and contesting results.

  
  Overwhelmed?

  You don’t have to be. Just work with a professional background screening agency that understands all the FCRA requirements and regulations. These agencies have built-in compliance tools that will keep you on the right side of the law every step of the way.