See link below to today’s Q3 Compliance Update – 30 Minute Lunch & Learn series. In this series our team provides updates to the most recent and common background screening compliance topics.
✅ Webinar Summary
Hosted by: RSI (Reference Services, Inc.)
Presenters: Stephanie Pier, Brad Odil, Alicia Barker
Purpose: Quarterly update on compliance topics in background screening
🛡️ Key Compliance Topics Covered
1. Confidentiality of Consumer Reports
- Reports must remain within the authorized company.
- If a contractor or another party needs access, they must be separately credentialed.
- Alternatives: share only pass/fail results without report details.
2. Turnaround Delays in Certain States
- Arizona & West Virginia: Manual court searches cause delays; require clerk assistance.
- Michigan: Redacted data and system limitations continue to cause sporadic issues.
3. CFPB (Consumer Financial Protection Bureau) & FCRA Updates
- Some Biden-era rules reversed, e.g., unpaid medical debt rules.
- California prohibits reporting of unpaid medical debt regardless of federal stance.
- New CFPB focus: consumer complaints over supervisory exams, prioritizing FCRA violations.
- CRA responsibilities include:
- Ensuring maximum accuracy
- Avoiding legally restricted information
- Providing clear file disclosures
4. 613 Letters (FCRA Section 613)
- RSI sends 613 letters for all public records, including volunteers and social media checks.
- These are consumer notices sent when public records may negatively impact employment decisions.
- Letters may be sent via email—important clients provide correct applicant email addresses.
5. Adverse Action Process
- Required when denying employment, promotions, or rental housing based on background reports.
- Three key steps:
- Pre-Adverse Action Notice with report & summary of rights.
- Waiting period (5 business days) for the applicant to respond/dispute.
- Post-Adverse Action Notice finalizes the decision.
- RSI’s system provides templates, tracks communications, and logs IP/email records for compliance.
- Non-compliance example: JB Hunt settled for $5M due to FCRA violations in adverse action processing.
🔍 Identification Tools & Accuracy Measures
Social Security Number (SSN) Trace:
- Used to identify address history but not considered a confirmed source during disputes.
- Clients should gather additional ID like driver’s licenses to support accuracy.
Common Name Scoring:
- RSI uses scoring to assess risk of mismatched identities (e.g., common names like “James Smith”).
- Reports require at least 3 positive identifiers (e.g., full name, DOB, address).
Biometric Identification (Future Trend):
- RSI promoting biometric verification (e.g., face scan, ID upload) to confirm applicant identity.
- Helps prevent fraud and simplifies dispute resolution.
- Adds minimal cost (~$5) and takes ~2 minutes to complete.
📌 Key Takeaways
- Do not share consumer reports unless the third party is properly credentialed.
- Stay updated on court delays, especially in Arizona, West Virginia, and Michigan.
- Follow FCRA guidelines for accuracy, 613 letters, and adverse action processes.
- Use RSI tools (like adverse action templates) to ensure documentation and compliance.
- Be proactive with applicant data—ensure correct email and ID documentation.
- Consider biometric ID verification to enhance screening integrity and reduce legal risk.
📞 Support & Resources
Updates & Webinars: Check the RSI client portal
Compliance Questions: compliance@referenceservices.com
General Help: help@referenceservices.com
PDF copy of our presentation here: Q3 Compliance Update – 30 Minute Lunch & Learn Webinar
Reference Services, Inc. is dedicated to ensuring client satisfaction by delivering exceptional customer service. Our U.S.-based team offers solutions designed to help clients build a safe, productive, and dependable workforce, utilizing cutting-edge technology. With our expertise and experience, RSI provides swift and precise reports at an unmatched value.
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