D. Credit Investigations

Employers are permitted to conduct a credit check if this serves a legitimate business purpose. However, the federal Fair Credit Reporting Act gives employees the right to know what's in their credit file and to challenge inaccurate information. If an applicant is rejected from a job because of a consumer report prepared by a retail credit bureau or similar agency, that applicant must be so informed and given the name and address of the agency. The person can then write or visit the agency directly to investigate the accuracy of the report. An employer requesting an investigative consumer report must notify an employee within three days that the report is being ordered and, upon request, provide a complete and accurate disclosure of the nature and scope of the investigation.