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"Data gathering firm are sometimes referred to as "vending machines" because employers pay them money and data spews forth, says Les Rosen, president of Employment Screening Resources in Novato, Calif. The quality of the data has not always been reviewed by senior personnel and is not always FCRA-compliant.
Rosen says employers should be sure the firm they are dealing with demonstrates that it will the review the data before it is conveyed to the employer. It shouldn't be "teenagers shuffling paper," he says. Sensitive information should be treated with great care, not faxed to a general-use machine in an open area, for example.
Firms also should demonstrate that they understand what
information should not be conveyed to employers."