CIPP/US Study Guide
Chapter 9: Financial Privacy

Consumer Reports for Employment

Employers using consumer reports must give a clear written stand-alone notice, get prior written authorization, certify compliance to the CRA (including no EEO violations), and before any adverse action provide the consumer a copy of the report and a summary of rights.

  1. Make a clear and conspicuous written notice in a document consisting solely of that disclosure, before obtaining the report.
  2. Obtain prior written authorization (which may cover access during employment).
  3. Certify to the CRA that the steps were followed, that use will not violate equal-opportunity law, and that adverse-action materials will be provided.
  4. Before taking adverse action, give the consumer a copy of the report and a summary of rights; send the adverse-action notice after the action.
Pre-adverse-action copy

In employment, the report copy and rights summary go to the consumer before the adverse action is taken; the adverse-action notice follows after. An adverse-action notice is also required if affiliate credit information (other than transactions/experience data) is used to deny employment.