ADA
Americans with Disabilities Act

Adverse Action
Any action taken by an end user of a consumer report that adversely affects the consumer, such as denying or terminating employment. If you are going to take Adverse Action against an employee or applicant, please refer to our Adverse Action - Sample information section.

Consumer Credit Report
A consumer report with credit information only.

Consumer Report
"In general, the term Consumer Report means any 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 which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for...employment purposes." (FCRA 603(d)). For practical purposes, any background report you receive, whether or not it contains credit information, is legally defined as a Consumer Report.

Consumer Reporting Agency (CRA)
"Any person (individual, partnership, corporation, trust, estate, cooperative) which, for monetary fees, dues, or on a cooperative non-profit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports." (FCRA 603(h)). For practical purposes, any company who furnishes background reports on individuals is a Consumer Reporting Agency.

EEOC
Equal Employment Opportunity Commission

End User
A User or End User is the individual who obtained the consumer report and who intends to use or uses the information to make an employment decision.

Fair Credit Reporting Act (FCRA)
Federal legislation that regulates the consumer reporting industry. "The purpose of the Act is to require consumer reporting agencies to adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regard to the confidentiality, accuracy, relevancy, and proper utilization of such information." (FCRA 602(b)). For practical purposes, the FCRA is the federal legislation that regulates pre-employment backgrounds. You must follow the stipulation of the FCRA or you may be subject to fines and or criminal charges.

Investigative Consumer Report
"A consumer report or portion thereof in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted or who may have knowledge concerning any such items of information..." (FCRA 603(e)). For practical purposes, if a consumer reporting agency is doing employment verification with interviews or reference interviews, the report you receive will legally be an Investigative Consumer Report.

Permissible Purpose
To obtain a consumer report, you must have permissible use. One of the permissible uses stipulated by the Fair Credit Reporting Act is for employment purposes. (FCRA 604(a)(3)(B))

Summary of Your Rights
A document published by the Federal Trade Commission which advises consumers of their rights when a consumer report is obtained. This document must accompany any consumer report delivered to an End User.

User
A User or End User is the individual who obtained the consumer report and who intends to use or uses the information to make an employment decision.