Final answer:
The law that protects individuals from employers accessing their credit reports without consent is the A. Fair Credit Reporting Act (FCRA). Employers must obtain written consent before accessing someone's credit report, making the correct option the Fair Credit Reporting Act (FCRA).
Step-by-step explanation:
The law that protects a client from an employer accessing their credit report without consent is the Fair Credit Reporting Act (FCRA). The FCRA was established to ensure the accuracy, fairness, and privacy of consumer information contained in the files of credit reporting agencies. It stipulates that employers must obtain written consent from an individual before obtaining their credit report.
In contrast, the Fair Credit Billing Act (FCBA) deals with billing errors on credit accounts, the Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, and child labor standards, and the Fair and Accurate Credit Transactions Act (FACTA) deals with the prevention of identity theft and the accuracy of credit-related consumer information. Therefore, regarding the unauthorized access of credit reports by employers, the FCRA is the relevant law.
According to the FCRA, consumer reporting agencies may only provide information to individuals or entities with a valid reason, such as credit evaluation, employment, insurance, or rental of housing. This means that should an employer wish to access a credit report for employment-related decisions, explicit permission from the candidate or employee is necessary. If an employer fails to secure such consent, they may be violating federal law.
Individuals should always be vigilant about their rights concerning personal information and credit history and be proactive in monitoring for any red flags that might suggest identity theft or unauthorized access to their financial data. And in the context of employment, it's critical for individuals to know that they have protections under the FCRA that require employers to secure consent prior to accessing credit reports.