Question

ABC Staffing Firm regularly contracts applicants' former employers as part of a routine reference check, and then provides reference information to their clients. Under these circumstances, which of the following is required to exclude the reference information from being considered a consumer report? Select all that apply.

1) Written disclosure to the candidate of the nature and substance of all information in the file (sources need not be disclosed) within five days of a request
2) Written confirmation by the candidate of any oral consent within three business days
3) Prior consent from the candidate to communicate the reference information to the prospective employer
4) Written notification to the candidate of the right to request the "nature and substance" of any information in the candidate's file at the time the information is requested
5) Prior consent (oral or written) from the candidate to make the reference check

Answer 1

In order to exclude reference information from being considered a consumer report, the candidate must give prior consent to communicate the information to the prospective employer. The candidate must also be provided with written disclosure of the information in their file within five days of their request, excluding the sources. If the candidate gives oral consent, they must confirm it in writing within three business days.

Step-by-step explanation:

In order to exclude the reference information from being considered a consumer report, the following requirements must be met:

1. Prior consent from the candidate to communicate the reference information to the prospective employer: The candidate must give consent for the reference information to be shared.
2. Written disclosure to the candidate of the nature and substance of all information in the file (sources need not be disclosed) within five days of a request: The candidate must be provided with written disclosure of the information in their file, excluding the sources, within five days of their request.
3. Written confirmation by the candidate of any oral consent within three business days: If the candidate gives oral consent, they must confirm it in writing within three business days.