CRA_DR_Blue_V2.0.jpg
Intelicrunch_Banner_Header.jpg

FCRA Language in the Heroes Act — Impact on Employers


The Heroes Act includes a provision which would place a temporary moratorium on the ability of consumer reporting agencies (CRAs) to furnish certain adverse information during major disasters, including during COVID-19.

Section 110401 of the Heroes Act would amend changes the CARES Act made to the Fair Credit Reporting Act (FCRA) by adding, “[n]o person may furnish any adverse item of information (except information related to a felony criminal conviction) relating to a consumer that was the result of any action or inaction that occurred during a covered period,” with “covered period” referring to the COVID-19 emergency or any major disaster.

If that sounds overly broad, it’s because it is. Such a change would significantly impact the information employers receive when requesting an employment-related background check from their background screening vendor. Under the FCRA, background screening providers (known as CRAs) may furnish adverse information for a period of seven (7) years, including information such as certain criminal charges, arrests (such as an active arrest warrant), misdemeanor convictions, and sanctions or disbarment actions. The language in H.R. 6800 would only allow the reporting of felony criminal convictions, which is currently allowed under the FCRA with no seven year limitation. It would therefore take away information that employers may currently lawfully consider when evaluating a candidate for employment.

The bill also includes language that would require credit bureaus (i.e., 603(p) CRAs) and nationwide specialty CRAs to delete adverse information from consumers’ files upon request. Meaning, they would have to delete adverse information that, but for COVID-19,would have been lawfully reportable. FULL ARTICLE

© 2020  InteliCrunch.com

InteliCrunch is a free service provided by a collective of people who monitor the background screening industry and how events affect not only the people in it, but even more importantly, the real human impact the industry has on today's society.*All third party logos and / or images used on this website are the sole property and / or registered trademarks of their respective companies or copyright holders. Use of these logos, images or likenesses does not, in any way, imply the endorsement of InteliCrunch by any of the businesses, brands or individuals represented, their parent companies, officers, employees, partners, or affiliates. Any such usage is for informational / news purposes only.  Any / all articles, announcements, releases or third-party-authored content is / are linked back to the original "source"  and author credit given  Furthermore, InteliCrunch is not responsible for, and does not warrant the safety of any third-party links or sites to which any viewer may be directed from InteliCrunch.  InteliCrunch has made reasonable efforts to ensure that any news or informational links on the site are from "known and reputable"  sources / websites.