FCRA

Definition

The Fair Credit Reporting Act (FCRA), 15 USC §1681 et seq., is the federal consumer-protection statute governing background reports used in employment decisions, including motor vehicle records pulled to hire or retain commercial drivers. When an MVR feeds a hiring decision, the provider supplying it acts as a consumer reporting agency and the carrier is an FCRA-covered user. The driver must receive a clear standalone disclosure, separate from the employment application (§1681b(b)(2)(A)), and give written authorization. If the report leads to a rejection, the carrier sends a pre-adverse-action notice with a copy of the report and the Summary of Rights, waits a reasonable period (typically five business days), then sends the final adverse-action notice. Willful violations carry statutory damages of $100 to $1,000 each, plus actual damages and attorneys’ fees.