FCRA & Screening Compliance
A practical walkthrough of your FCRA obligations when using screening reports, including adverse action.
Screening reports are consumer reports under the FCRA, which imposes specific duties on anyone who uses them.
Before you pull a report
- Have a permissible purpose.
- Get the applicant’s written authorization.
- Use the report only for that purpose.
If you deny based on a report
Follow the adverse-action process: provide a pre-adverse-action notice with a copy of the report and the applicant’s FCRA rights, allow time to dispute, then send an adverse-action notice if you proceed.
Seayora is not a consumer reporting agency and doesn’t make decisions. You’re responsible for compliance — consult counsel if unsure.
Record-keeping for FCRA compliance
Keep a record of the applicant’s authorization, the report used, and any adverse-action notices sent — these are exactly what you’d need to produce if a decision were ever challenged.
Frequently asked questions
How long should I keep FCRA-related records?
Retention requirements can vary, but keeping authorization, the report, and any adverse-action notices for the life of the application plus a reasonable buffer is a common practice — check with counsel for your specific obligations.
Can I use the same screening criteria across all my properties?
Yes, and doing so is good practice — consistent, documented criteria applied the same way everywhere is your best protection against a discrimination claim.
Is a verbal denial enough, or do I need it in writing?
FCRA adverse-action notices must be provided to the applicant — a verbal-only denial doesn’t satisfy the notice requirement when a consumer report contributed to the decision.