What is the FCRA:
The Fair Credit Reporting Act (FCRA) is a federal law (15 U.S.C. §§ 1681–1681x) that governs credit reports, background checks, consumer reporting agencies, and the rights consumers have to access, dispute, and correct their information. It also restricts who can access a consumer report and for what legally permissible purpose.
Who it applies to:
The FCRA applies to three major groups: consumer reporting agencies, furnishers of information, and users of consumer reports. These categories are defined throughout federal regulations implementing the Fair Credit Reporting Act.
Why it matters in background screening:
The Fair Credit Reporting Act applies whenever an employer uses a third‑party background screening company to gather information about a job applicant or employee. In that situation, the background report becomes a consumer report, and the screening company becomes a consumer reporting agency (CRA) under the law.
This triggers strict requirements for both the employer and the screening company.
Scherzer’s Relevance:
Scherzer International complies with the FCRA by implementing AI‑supported accuracy controls, securing proper disclosures and written authorizations, and following all required pre‑adverse and adverse‑action procedures when delivering employment background screening services.

