Tips from June 25, 2009 The Small Business tips today will be discussing the Fair Credit Reporting Act (FCRA).
Employers generally ask a credit reporting company for credit, employment history, motor vehicle records, criminal background, and references which must comply with the FCRA requirements.
Under the FCRA, a credit reporting company will not provide an employee’s credit report to an employer without proper written consent.
As an employer, if you decide to not hire or promote an employee based on their credit report, you must provide a copy of the report and let the employee know the right to challenge the report.
FCRA also requires businesses to report accurate information regarding debts owed to a credit reporting company by a debtor to avoid costly fines.
Daily Overview: The FCRA protects credit reports of employees. For more information, go to the [Read Full Article]
The Fair and Accurate Credit Transactions Act (FACTA) was passed under the Fair Credit Reporting Act back in 2003. The law requires that credit card receipts print only truncated portions of the credit card number used for the transaction. Businesses were given until 2006 to comply and since then can be hit with monetary penalties. They are also open to civil lawsuits, and that is the problem. The law has gone from being a tool to battle identity theft and credit card fraud to being a gold mine for trial lawyers who bring suit against small businesses that inadvertently violate the law.
America’s Best Companies believes that this is both a travesty of justice and a perversion of the law’s original intent. The following is a letter written by ABC President Jim Tracy, and sent to every senator and representative, as well as to the President, which outlines the problem and urges action to put an end to these litigious abuses. Here is the body of Jim’s letter:
... [Read Full Article]