News

Safe Gatherings Lessens the Administrative Burden When It Comes to Complying with the Fair Credit Reporting Act (FCRA)

Monday, April 27th, 2026

When it comes to the Fair Credit Reporting Act (FCRA), compliance isn’t optional for employers – it’s a legal requirement. Under the FCRA, employers have certain obligations to protect consumer rights when running background checks on potential staff and volunteers. Those found in violation could face significant civil penalties (lawsuits, damages, fees and costs) and in severe cases could even face criminal penalties.

The good news – Safe Gatherings and Validity Screening Solutions are experts in FCRA compliance. Keep reading to learn how we make compliance easy for our clients, especially those utilizing our approval package.

The Basics:

First, let’s cover some basics and debunk a few myths.

In short, the Fair Credit Reporting Act (FCRA) is a federal law that regulates how consumer (applicant)
information is collected, shared, and used. It is designed to protect the privacy, accuracy, and fairness of
that information.

A “consumer report” as defined by the FCRA is any written or oral communication that is prepared by a
Consumer Reporting Agency (CRA) and bears on a consumer’s creditworthiness, character, general
reputation, personal characteristics, or mode of living.

Myth: The FCRA only applies to credit reports

While it’s often associated with credit reports, the FCRA also applies to employment background checks.
When Safe Gatherings conducts a background check on an applicant and provides those findings to the
church, the background report becomes a consumer report and the FCRA applies.

For employment purposes, a consumer report might include:

  • Credit reports
  • Criminal background checks
  • Employment history verification
  • Education verification
  • Driving records

Myth: The FCRA only applies to paid staff members

The FCRA applies to volunteers similarly to employees, particularly in environments involving children,
youth, and vulnerable populations. According to the Federal Trade Commission, volunteers and
independent contractors are entitled to the same protections as employees under the FCRA.

Employer Obligations
Here are some key obligations an employer must comply with under the FCRA

  1. Provide a Clear Disclosure
    Before obtaining a consumer report, employers must provide a clear and conspicuous written
    disclosure     to the applicant or employee. This disclosure must:
  • Be in a standalone document
  • State that a consumer report may be obtained for employment purposes

It cannot be buried in an employment application or combined with unrelated information.

  1. Obtain Written Authorization

Employers must obtain the individual’s written consent before pulling a background report.

3. Follow Pre-Adverse Action Procedures

If an employer is considering taking adverse action (e.g., not hiring, firing, or denying a promotion)
based on the report, they must first provide:

This gives the individual an opportunity to review the report and dispute inaccuracies.

4. Allow Time for a Response

Employers should allow a reasonable amount of time (commonly 5 business days) for the individual to
respond or dispute the report before making a final decision.

5. Send an Adverse Action Notice

If the employer proceeds with the adverse decision, they must provide an adverse action notice, which
includes:

  • Notice of the decision
  • Contact information for the reporting agency
  • A statement that the agency did not make the decision
  • Information on the individual’s right to dispute the report
  • Notice of the right to request a free copy of the report within 60 days

Common Compliance Mistakes

Employers frequently run into trouble by:

  • Including liability waivers in disclosure forms (not allowed)
  • Combining disclosures with job applications
  • Skipping the pre-adverse action step
  • Failing to provide proper notices
  • Using outdated forms

Even minor technical violations can lead to class-action lawsuits.

Safe Gatherings Makes Compliance Easy

For all clients running background checks through Safe Gatherings, rest assured we have you covered
when it comes to the Disclosure and Authorization forms. These FCRA compliant documents are
presented to the applicant for review and electronic signature through Safe Gatherings’ online portal.


For those clients that have signed up for the approval package, in addition to the Disclosure and
Authorization forms, Safe Gatherings will adjudicate the pre-adverse and adverse action process for any
applicant that is denied Safe Gatherings approval.


Please note, if your organization is not running the approval package you will need to handle the pre-
adverse & adverse action process, if deemed necessary, or you will be in violation of the FCRA.

If you would like to learn more about Safe Gatherings’ approval package, please contact us at contact@safegatherings.com or 888-241-8258.