Volume 7, Edition 5, May 2011

This Month’s Challenge is sponsored by:



D is the correct answer. An interview that only gathers objective information is not considered by the FTC to be the type of conversation that constitutes an “interview” for investigative consumer report purposes. See FTC Letter Opinion, Hinkel, July 9, 1998. However, the accuracy requirements of the FCRA apply, and the CRA must follow procedures to report accurate information when verifying past employment. Thus the CRA representative must talk to a person who has knowledge of or access to the requested information so that it will be accurate.

A CRA is engaged in employment verification and calls and speaks to a former employer and obtains information concerning the consumer’s dates of employment, job title, and final pay level. The CRA then reports that information to the prospective employer. What must a CRA do to comply with the FCRA?

A. Nothing is required. Employment verifications are not covered by the FCRA.

B: Comply with the investigative consumer report requirements of the FCRA because the information was obtained via an interview.

C: Ignore the provisions relating to investigative consumer reports because the person interviewed is the best source of the information.

D: Make sure that the person providing the information is in a position to have actual knowledge of the information being provided.


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