Legal Compliance a Serious Matter for NAPBS Accredited Background Screening Firms

 NABPSUSCRA_accredited

Written By ESR News Blog Editor Thomas Ahearn

Being well versed in the federal Fair Credit Reporting Act (FCRA) and numerous state screening laws is a serious matter for background screening firms accredited by the National Association of Professional Background Screeners (NAPBS®). The increasingly complex laws governing background checks in the United States mean employers need screening providers that know compliance. 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:

  • 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 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 as a not-for-profit trade association in 2003, the NAPBS represents the interests of more than 880 member companies around the world that offer employment and tenant background screening. NAPBS Member companies are defined as “consumer reporting agencies” pursuant to the Fair Credit Reporting Act (FCRA) and are regulated by both the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). To learn more about the NAPBS, visit www.napbs.com.

To read other blogs about the NAPBS, visit www.esrcheck.com/wordpress/tag/napbs/.

ESR Is Accredited by the NAPBS

Founded in the San Francisco, California-area in 1997, Employment Screening Resources® (ESR) is a global background check firm that is accredited by the NAPBS®. ESR also undergoes annual SOC 2® audits to protect the privacy, security, and confidentiality of consumer information. ESR founder and CEO Attorney Lester Rosen wrote the book on background checks with “The Safe Hiring Manual” (3rd Edition published in January 2017). 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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