Everything You Need to Know About California’s ICRAA Screening Standards

If you do background screening on your rental or employment applicants in California, you’re going to need to adopt this policy. Since 2012, the California Investigative Consumer Reporting Agencies Act (ICRAA) allows applicants to request and receive a free copy of their consumer report. Do you know this screening requirement that is unique to California?

If you do background screening on your rental or employment applicants in California, you’re going to need to adopt this policy. Since 2012, the California Investigative Consumer Reporting Agencies Act (ICRAA) allows applicants to request and receive a free copy of their consumer report. Do you know this screening requirement that is unique to California?

Both resident and employment screening reports must adhere to the federal FCRA, but if the rental or employment decision is made in California or the business or rental property resides in California, you’ll need to abide by the state’s own version of the FCRA. That is the Consumer Credit Reporting Agencies Act, Civil Code Section 1785 et al, (CCRAA), and the Investigative Consumer Reporting Agencies Act, Civil Code Section 1786 et al, (ICRAA). Since it became effective, ICRAA was clarified even further with the California Supreme Court in Connor v. First Student, Inc. decision in 2018.

Both resident and employment screening reports must adhere to the federal FCRA, but if the rental or employment decision is made in California or the business or rental property resides in California, you’ll need to abide by the state’s own version of the FCRA. That is the Consumer Credit Reporting Agencies Act, Civil Code Section 1785 et al, (CCRAA), and the Investigative Consumer Reporting Agencies Act, Civil Code Section 1786 et al, (ICRAA). Since it became effective, ICRAA was clarified even further with the California Supreme Court in Connor v. First Student, Inc. decision in 2018.

Complying with ICRAA is Easy

1.

Run the applicant’s resident screening or employment screening report

2.

Review the report and make a final decision

3.

Notify the applicant of the final decision, and if requested, provide the applicant a free copy of their report and any required disclosures

Complying with ICRAA is Easy

1.

Run the applicant’s resident screening or employment screening report

2.

Review the report and make a final decision

3

Notify the applicant of the final decision, and if requested, provide the applicant a free copy of their report and any required disclosures

Under ICRAA, you must provide each job or rental applicant with the option to receive a free copy of their consumer credit report and applicable/required disclosures if requested. Again, this must be provided free of charge.

While offering the applicant a copy of their report is standard in California and CIC has provided this option for years, we recommend all businesses and rental housing properties across the U.S. adopt this policy as well. Doing so can alleviate some of the questions an applicant might have if denied and empower future applicants to get more involved and aware of how they stand as a renter.

As new policies and procedures for credit and background screening reports are passed, CIC is here to help every step of the way. Not only are we passionate about delivering you the highest quality resident and employment screening data, but we’ve made it our mission to ensure the data you receive is secure and legally compliant.

for more screening tips!

Under ICRAA, you must provide each job or rental applicant with the option to receive a free copy of their consumer credit report and applicable/required disclosures if requested. Again, this must be provided free of charge.

While offering the applicant a copy of their report is standard in California and CIC has provided this option for years, we recommend all businesses and rental housing properties across the U.S. adopt this policy as well. Doing so can alleviate some of the questions an applicant might have if denied and empower future applicants to get more involved and aware of how they stand as a renter.

As new policies and procedures for credit and background screening reports are passed, CIC is here to help every step of the way. Not only are we passionate about delivering you the highest quality resident and employment screening data, but we’ve made it our mission to ensure the data you receive is secure and legally compliant.

for more screening tips!

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Nicole Seidner

Cole Seidner is a copywriter here at the CIC Blog. She holds a degree in Writing from Savannah College of Art and Design with a focus in creative nonfiction. Her free time is spent taking pictures of her dogs or reading deep dive analysis on movies that she hasn’t seen.

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