Fair Credit Reporting Act (FCRA)
The business of providing background checks or otherwise selling or brokering reports about individual consumers is a highly regulated under the federal Fair Credit Reporting Act (FCRA) and other legislation. Kronenberger Rosenfeld has represented a wide variety of background check providers, data brokers, and resellers navigate this complicated statute. We can bring this experience to bear for your company.
We can help you navigate the FCRA.
If your business publishes online reports about individuals, you need to understand the federal Fair Credit Reporting Act (FCRA), 15 U.S. Code § 1681. One of the most widely applicable laws for online businesses, the FCRA applies to:
- “data broker” companies that create records and sell enterprise subscription packages;
- “background check” companies that buy government data and assemble reports; and
- “reseller” companies that republish records to generate advertising revenue.
The combination of our years of experience representing internet marketers and our depth of knowledge concerning the application of the FCRA is of great benefit to our clients.
The federal government often seeks penalties under the FCRA for six or even seven figures against companies in these industries if they publish personal information online without proper safeguards and procedures in place. Companies sued under the FCRA that settle often face costly, burdensome court-supervised compliance programs. These programs include considerable reporting and compliance requirements.
Our clients rely on us for FCRA advice that helps them stay complaint with the law and safeguarded from costly enforcement actions. We monitor the courts and federal agencies, equipping our clients with the keys to compliance.
Kronenberger Rosenfeld offers the following services:
- Upfront consultation to determine your legal risks under the FCRA.
- Working with compliance officers and employees to clarify the FCRA’s basic requirements.
- Analyzing vendor agreements between Credit Reporting Agencies and individual resellers.
- Drafting online forms to comply with the “permissible purposes” requirements of the FCRA.
- Evaluating clients’ “reasonable procedures” for assuring accuracy of reports
- Advising businesses on limited obligations under the FCRA “reseller” safe harbor.
- Developing compliance plans, including document retention policies.
- Corresponding directly with third parties who request modifications to published information.
- Customizing website disclaimers and user agreements.
- Representing companies facing FTC investigations or enforcement actions under the FCRA.