What information is required to be in an authorization/release form?

A consumer report authorization form, often used by employers for background checks, must comply with the Fair Credit Reporting Act (FCRA) in the United States. The FCRA outlines specific requirements for the information that must be included in such authorization forms to ensure transparency and protect the rights of the consumer. While the exact wording may vary, the key elements typically required in a consumer report authorization form include:

1. Clear and Conspicuous Disclosure:

• The authorization form must clearly and conspicuously inform the consumer (job applicant or employee) that a consumer report may be obtained for employment purposes.

2. Authorization Statement:

• The form should contain a statement where the consumer provides written consent for the employer to obtain a consumer report. This consent should be separate from other application materials and should not be bundled with other information.

3. Purpose of the Report:

• The form should specify that the consumer report will be used for employment purposes, including hiring, promotion, retention, or reassignment.

4. Identity Verification:

• Include fields for the consumer to provide personal information such as name, address, date of birth, and Social Security number to ensure accurate identification.

5. Contact Information:

• Provide the name, address, and phone number of the consumer reporting agency (CRA) that will be conducting the background check.

6. Notice of Rights Under FCRA:

• Include a summary of the consumer's rights under the FCRA, which may include the right to know if information in the report is used against them and the right to dispute inaccurate information.

7. Certification and Acknowledgment:

• Include a space for the consumer to sign and date, certifying that they have read and understood the disclosure and authorization. This section may also include language indicating that the consumer is providing the authorization voluntarily.

8. Release of Liability:

• Some authorization forms include a release of liability clause, indicating that the consumer releases the employer and the consumer reporting agency from any liability arising from the use of the consumer report.

It's essential for employers to stay informed about any updates or changes to relevant laws and regulations, as non-compliance can lead to legal consequences. Additionally, employers may need to adhere to state-specific laws that could impose additional requirements or restrictions on the use of consumer reports for employment purposes.

For your convenience, we provide an example of an Authorization and Release form in English and Spanish in our Resources section of Aegis.  However, we encourage you to provide this information to your lawyer for review.