The Fair Credit Reporting Act is a federal law which regulates the use of consumer, dissemination and collection information. Within HR, employers who run background checks on candidates must comply with this Act. 

How does this act work?

The Fair Credit Reporting Act is the the main federal law which governs the collection and reporting of credit information about individuals. Its rules cover how a individual’s credit information is obtained, how long it is kept, and how it is shared with others. For some professions, credit check is conducted.