FCRA-Compliant Background Checks for Employees

What is FCRA-Compliance for Employee Background Checks?

FCRA, of course, stands for the Fair Credit Reporting Act and is the federal law that regulates consumer rights with regard to certain key elements of their financial information. FCRA-compliant background checks refer to background checks that work with accord to this law, yet help employers pre-screen employees prior to a hire. A credit report reveals information about the applicant’s debt load, payment history, and any public record information (judgments, liens, bankruptcy). People often do access lending options and credit checkers through sites like SoFi, but having access to this on your end is important too. This information is critical in assessing the potential employee’s financial responsibility and any potential motivation for the misuse of funds. Caution: some states have limited the ability to access a consumer credit report for employment purposes unless the employer can demonstrate need and relevance for the position applied for.

  • Turnaround time: 15 minutes to 4 hours


While this report should always be run on applicants with financial responsibilities, it is also a good tool to use for any applicant with access to sensitive data, client premises, or inventory. Our FCRA-compliant background checks are a valuable tool for any hiring manager, department, or employer. Mismanagement of personal finances could indicate irresponsibility and questionable security.

  • Prisons (all levels)
  • Financial Institutions
  • Government
  • Retail Stores
  • All organizations that handle money, inventory, or work with sensitive data.

Employee screening, including but not limited to credit checks, should be conducted at various milestones. First and foremost, a potential hire should be pre-screened prior to employment. These are known as “pre-employment screenings.” Potential hires can undergo extensive screenings for issues such as criminal records, drivers license issues, legal work status, credit reporting and other information as permissible by law. Certain industries require additional pre-screenings. Second, on-going employees can be screened as well. Employees who occupy a sensitive position and/or work in a sensitive industry may need to be screened on an on-going basis. Our technologically sophisticated system can help with this, taking this burden off of the employer or HR department.

Why Background Profiles®?

We are one of the top FCRA-compliant employee screening companies. Based in California, we service companies across the United States and in industries as diverse as healthcare, education, government and non-profits. Our sophisticated online interface as well as real-world technologies make it easy for you to outsource the background check service and employment screening service to us. If you’d like to learn more about our employee background check services, please contact your Background Profiles Sales Representative by email or call 1-800-800-0197.

Updated: 5/15/2016