Legal Compliance Critical for NAPBS Accredited Background Screening Firms

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Written By ESR News Blog Editor Thomas Ahearn

Given the increasingly complex laws governing background checks in the United States, employers need a background screening provider that remains in compliance with the law. A background screening firm accredited by the National Association of Professional Background Screeners (NAPBS) is well versed in the federal Fair Credit Reporting Act (FCRA) and numerous state screening laws. This blog is the second in a six part series about the NAPBS Background Screening Agency Accreditation Program (BSAAP).

‘Legal Compliance’ is the second of six sections of the BSAAP created for Consumer Reporting Agencies (CRAs) – the technical term for background screening companies – along with ‘Consumer Protection,’ ‘Client Education,’ ‘Researcher and Data Product Standards,’ ‘Verification Service Standards,’ and ‘General Business Practices.’ The BSAAP contains 58 clauses that CRAs must follow to be NAPBS Accredited. The ‘Legal Compliance’ section contains the seven clauses below as listed on the NAPBS website:

  • 2.1 Designated Compliance Person(s) – The CRA shall designate an individual(s) or position(s) within the organization responsible for CRA’s compliance with all sections of the federal FCRA that pertain to the consumer reports provided by the CRA for employment purposes.
  • 2.2 State Consumer Reporting Laws – The CRA shall designate an individual(s) or position(s) within the organization responsible for compliance with all state consumer reporting laws that pertain to the consumer reports provided by the CRA for employment purposes.
  • 2.3 Driver Privacy Protection Act (DPPA) – The CRA shall designate an individual(s) or position(s) within the organization responsible for compliance with the DPPA that pertain to the consumer reports provided by the CRA for employment purposes, if the CRA furnishes consumer reports that contain information subject to the DPPA.
  • 2.4 State Implemented DPPA Compliance – If the CRA furnishes consumer reports that contain information subject to the DPPA-implementing statutes in a particular state(s), the CRA shall designate an individual(s) or position(s) within the organization responsible for compliance with state implementations of the DPPA that pertain to the products and services provided by the CRA for employment purposes.
  • 2.5 Integrity – CRA shall not engage in bribery or any other fraudulent activity to obtain preferential treatment from a public official.
  • 2.6 Prescribed Notices – CRA shall provide client all federal FCRA-required, FTC-prescribed documents which the federal FCRA mandates be provided to client by the CRA.*
  • 2.7 Agreement from Client – Before providing consumer reports to clients, CRA shall obtain a signed agreement from client (referred to as “user” in federal FCRA) in which client agrees to meet the requirements of the federal FCRA, and applicable state and federal laws.

* For Clause 2.6 Prescribed Notices the federal FCRA-required documents are prescribed by the Consumer Financial Protection Bureau (CFPB) as of January 1, 2013.

Governed by a strict professional standard of specified requirements and measurements, the BSAAP is becoming a widely recognized seal of achievement that brings national recognition to background screening organizations.  This recognition will stand as the industry “seal,” representing a background screening organization’s commitment to excellence, accountability, high professional standards, and continued institutional improvement. To learn more about the BSAPP, visit www.napbs.com/accreditation/.

Founded in 2003 as a not-for-profit trade association, the NAPBS® represents the interests of more than 700 member companies around the world that offer tenant, employment, and background screening.  NAPBS provides relevant programs and training aimed at empowering members to better serve clients and maintain standards of excellence in the background screening industry, and presents a unified voice in the development of national, state, and local regulations. To learn more about the NAPBS, visit www.napbs.com.

To read other blogs in this series, visit http://www.esrcheck.com/wordpress/tag/napbs/.

ESR Achieves Re-Accreditation with NAPBS

The National Association of Professional Background Screeners (NAPBS®) Background Screening Credentialing Council (BSCC) has announced that Employment Screening Resources® (ESR) successfully demonstrated continued compliance with the Background Screening Agency Accreditation Program (BSAAP) and is recognized as BSCC-Accredited. To learn more about Accreditation, read the ESR News Blog “Employment Screening Resources Achieves Background Screening Credentialing Council Re-Accreditation.”

Founded in 1997, Employment Screening Resources® (ESR) is a global background check firm headquartered in the San Francisco, California area. ESR is a strategic choice that consistently delivers fast, accurate, affordable, and compliant information through innovative and highly integrated solutions. ESR is accredited by the NAPBS® and is audited yearly for SSAE 18 SOC 2® Type 2 compliance, a distinction held by a small percentage of background screening firms. To learn more about ESR, visit www.esrcheck.com.

NOTE: Employment Screening Resources® (ESR) does not provide or offer legal services or legal advice of any kind or nature. Any information on this website is for educational purposes only.

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