About FCRA/FACT Act
Under the Fair Credit Reporting/FACT Act, there are various usage requirements for both consumers and businesses when ordering certain background, investigative, personal and other reports.
As LexisNexis® is committed to protecting the privacy of consumer data and helping our customers understand and comply with the FCRA, we've compiled some information to help you understand these requirements, including the differences between FCRA and non-FCRA products, various usage guidelines and what the FCRA means for you or your business. To learn more, visit http://www.ftc.gov/os/statutes/fcrajump.shtm.
What is the FCRA?
The federal Fair Credit Reporting Act (FCRA) was enacted April 25, 1971. The FCRA created the first federal regulation of the consumer reporting industry citing “a need to ensure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality and a respect for the consumer's right to privacy.”
How does LexisNexis Risk Solutions keep you FCRA compliant?
When your company orders a consumer report, it is automatically subject to certain provisions of the FCRA. A consumer report is defined under the Act as “a written, oral or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living” used in whole or in part as a factor in establishing a consumer's eligibility for credit, employment, insurance or other benefits. These are “records only” reports and do not include interviews with current or former employers, schools or other institutions, or business or personal references.
LexisNexis® makes it easier for you to comply with FCRA guidelines by clearly delineating which products are for consumers and which are for businesses; identifying which of our products and services comply with the FCRA; and identifying which of our products and solutions are not governed by FCRA usage guidelines. In addition, we're committed to providing resources like this one to help you learn more about FCRA compliance.
Certain provisions of the FCRA also deal specifically with your responsibilities if you order a category of reports called investigative consumer reports. An investigative consumer report is a type of report containing information pertaining to the consumer'd through personal interviews with friends or associates of the consumer. For example if you order a reference check, then the report will qualify as an Investigative Consumer Report.
How is LexisNexis® affected by the FCRA?
In addition to other information services, LexisNexis Risk Solutions supplies consumer reports to its customers. The following specific types of reports fall under the provisions of the FCRA:
- Those used to evaluate a consumer's eligibility for credit for personal purposes.
- Those used to underwrite insurance for personal purposes.
- Those used to evaluate a consumer's eligibility for prospective employment.
- Those used to evaluate an employee for retention, promotion or reassignment.
- Those used to evaluate a consumer's eligibility for a license or other benefit granted by a government agency.
- Those used in connection with a business transaction involving a consumer for a benefit used for personal purposes.
- Those used in connection with a court order or subpoena.
- Those used with written authorization from the consumer to whom it relates.
- Those used regarding investors or insurers.
- Those used in response to state or local child support enforcement agency.
LexisNexis has established consumer disclosure units to make it easier for consumers to receive copies/information contained in consumer reports. For credit disclosure, call 1-800-270-3435. For employment disclosure, call 1-800-845-6004. For more information on the FCRA and FACT Act and what it means to you, click here.