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Background Check RestrictionsThe federal Fair Credit Reporting Act (FCRA) sets national standards for employment screening. The law applies to background checks performed by an outside company, such as PeopleCheck, called a "consumer reporting agency" under the FCRA.
Under the FCRA, a background check report is called a "consumer report." This is the same "official" name given to your credit report, and the same limits on disclosure apply. The FCRA says the following cannot be reported:
- Bankruptcies after 10 years.
- Civil suits, civil judgments, and records of arrest, from date of entry, after seven years.
- Paid tax liens after seven years.
- Accounts placed for collection after seven years.
- Any other negative information (except criminal convictions) after seven years.
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