Compliance
FCRA Compliance For You
Kredifi doesn’t provide legal counsel but we work with a leading law firm, specializing in background screening and other employment related areas, to ensure our solutions and services are in compliance with Fair Credit Reporting Act (FCRA) requirements. We understand our clients may have their own legal counsel or may need help; we strive to make FCRA compliance easy for you.
Technology And Compliance
Kredifi’s background screening platform, with its rules-based engine, makes it easier to comply with state laws and avoid FCRA violations. Leveraging data science and machine learning combined with our people’s expertise, Kredifi’s platform ensures you will always have the right compliance from your applicants.
Dispute And Compliance
Kredifi complies with regulating laws and authorities, consumer rights and protections, and training and education for employees, end-users, and consumers. We work with our law firm to ensure we are constantly updating our documents, processes, and reporting. Kredifi platform offers automated Adverse Action (AA) and dispute process, with all the required documents and templates, for our clients as a value added feature at no additional cost.
Adverse Action – Kredifi Dispute Process and Form
Kredifi’s screening platform provides complete and automated support for the Adverse Action (AA) process, including recommended documents for pre-adverse action notification, waiting period, dispute resolution, and final action. However, individuals may download the form below to learn more about the dispute process, independent of any adverse action notification.
Kredifi – Dispute Process and Form – vMar25
Click here to learn more about Adverse Action (AA).
Forms, Sample Disclosures and Notices
FCRA Summary of Rights and Disclosure
Sample Disclosure and Authorization (kredifi.com)
New York Correction Law Article 23-A
San Francisco The Fair Chance Ordinance (FCO)
FCRA Compliant Employment Background Screening
What Is FCRA Employment Screening?
The FCRA is a federal law that governs how employers access and use consumer information for employment purposes. This includes everything from criminal background checks to employment history verifications. But compliance isn’t optional, it’s a legal necessity.
Key FCRA requirements include:
-Obtaining written consent from candidates before running a background check.
-Providing clear disclosures about the screening process.
-Following specific steps if you decide not to hire based on the report (known as adverse action procedures).
Kredifi ensures every check meets FCRA standards, protecting your business from costly legal risks while respecting applicant rights.
Our FCRA Screening Process and Reporting
At Kredifi, we’ve streamlined FCRA employment screening into a simple, effective process:
1. Candidate Consent: We offer sample forms you can use as a starting point to secure applicant approval and meet disclosure requirements.
2. Data Collection: Our team gathers comprehensive data from all public and private sources, directly or through our data provider partners that specialize in research, criminal records, past employment, education, and more, as required for the background checks that are requested.
3. Compliant Reporting: You receive a clear, FCRA compliant report highlighting any checks for review if there’s any reportable records found. As per compliance, the records are presented as reported based on the search; we do not and will not modify, change or delete checks or records for reporting as this will put you and us at a huge compliance risk. We take care to report results as per Federal and state (US) or other international reporting guidelines.
4. Adverse Action Support: If a report impacts your hiring decision, we strongly recommend you to follow the Adverse Action (AA) process and guidelines. Our platform provides complete AA process support. In addition, we will be glad to assist you as needed.
Every stage is designed to keep you compliant while delivering the information you need to hire with confidence. Curious about the details? Contact us to see how our employment background check steps work for your business.
If derogatory records are found (adverse action for your hiring decision):
1. You must verify that any database records found are updated and accurate at the originating source: County criminal court or real-time state government search. You may send the Dispute Form to the applicant.
2. Send FCRA Pre Adverse Action Letter. Wait at least five days to allow the applicant to dispute any discrepancies before taking any further action
3. Conduct an Individualized Assessment as per EEOC, based on nature of the offense and how it relates to the job position
4. After further review, you may hire or decline employment applicant
5. If declined, you must mail applicant a Job Declination Adverse Action letter
What is a 613 Letter under the Fair Credit Reporting Act?
A 613a Letter is a letter sent from Kredifi to the consumer letting them know we are reporting criminal or other public record information on their report that was requested by an employer.
A 613 letter is more of a notification to the applicant that information was discovered during a background check. In essence, this letter serves as a “heads-up” notification to the applicant/consumer.
Why did I receive a 613a letter?
An applicant will receive a 613a letter if criminal or other public information is being reported to the employer who has requested the report.
What on my background check prompted the 613a letter to be sent to me?
A variety of information can be reported on your background check report. We are more than happy to review your report with you or send you a copy for your review. Feel free to email us and we can assist you with this.
Will I not be considered for employment if I received a 613a letter?
Kredifi does NOT make any hiring decisions, but simply provides the applicant a 613a letter based on the results of the background check.
What can I do about this? Should I contact the employer and explain the situation?
Kredifi suggests if you feel that you would like to explain the results of the background check in more detail, you should contact the prospective employer directly. Kredifi simply provides the 613a letter per the FCRA.
If anything negative shows up on the report, a 613a letter is automatically sent to the applicant by Kredifi. A 613 Letter is a notification that negative information was found in a criminal database background check that may influence an applicant’s eligibility for employment. Sending out a 613a letter offers the applicant the opportunity to explain or dispute the criminal database information discovered. The 613 letter is not considered to be an Adverse Action Letter as it merely serves to give advance notice to the applicant that information was discovered that merits further investigation.
FCRA Criminal Reporting Restrictions
Did you know? The following States observe seven-year restrictions when processing FCRA criminal searches: CA, CO, KS, ME, MD, MA, MT, NH, NM, NV, NY, TX, WA
The FCRA permits employers to obtain records that are older than the FCRA 7-year limit if you’re applying for a position that pays $75,000 or more. However, you must clearly state this on the applicant’s background check consent form.
These regulations change from time to time without any notice. Kredifi will process all criminal searches for seven (7) year period to be in compliance with state and federal reporting guidelines at all times.
Ban the Box
Find out whether “Ban the Box” is applicable to your geographical location. “Ban the box” means not asking about past criminal convictions during the initial application process, but rather after the interview and skills assessment if a job offer is to be made contingent upon results of a background check report.
Victim of Trafficking?
Are you a victim of trafficking and concerned about how this may affect your consumer file? Click here to learn more.
