Lawsuits due to Incorrect Forms for Background Checks can be avoided by following the requirements of the Fair Credit Reporting Act (FCRA).  What do Michael’s Stores, Whole Foods, Dollar General, Publix, Panera Bread, Chuck E. Cheese and Paramount Pictures share in common?  They have all fell victim to class action lawsuits alleging violations of the Fair Credit Reporting Act (FCRA).

Lawsuits due to Incorrect Forms for Background Checks

The lawsuits center on the failure of these employers to provide proper disclosures and authorizations prior to performing employment background checks.

FCRA

The FCRA requires both a written disclosure and authorization prior to performing a background check.  The disclosure informs the applicant that a consumer report or investigative report may be obtained for a background check.   The applicant must sign a written acknowledgement and authorization confirming their receipt of the disclosure and confirm their receipt of the Summary of Your Rights Under the FCRA.

Disclosure and Authorization Form

The disclosure and authorization form must be in a stand-alone document. The forms cannot be hidden within an application or contain limited liability clauses.  The authorization must be signed prior to performing the background check.  The employers named in the lawsuits are alleged to have been negligent in their adherence to these requirements.

The FCRA disclosure and authorization requirements pertain to both employment and tenant screening. Florida property managers, Florida community associations and landlords should be aware of these requirements.  Professional background screening companies working in South Florida should be able to provide the proper form and the Summary of Your Rights Under the FCRA.

Applycheck Background Screening provides FCRA disclosure and authorization forms to Florida property managers and Florida community associations for ordering tenant background checks.   The forms are also available within its web based ordering system.  The Applycheck system prompts the processor to attach the authorization prior to completion of the order for a tenant background check. Clients are provided a clear method for compliance.

By following the guidelines of the FCRA, Florida property managers and Florida community associations can avoid costly lawsuits, fines or penalties.  Performing background checks including credit reports, criminal records and eviction records are an important step in the tenant screening application process. By following the legal requirements of the FCRA, Florida property managers and Florida community associations can avoid legal problems while ensuring the safety and welfare of their communities.

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