What Is a Consumer Report Background Check?

Understanding a Consumer Report

A consumer report is a collection of background information that an employer obtains from a third-party Consumer Reporting Agency (CRA) to evaluate a candidate’s suitability for employment.

For employment purposes, a consumer report may include:

• Criminal records
• Driving records
• Education verification
• Employment history
• Other specialized record checks

Background Check vs. Consumer Report: What’s the Difference?

While often used interchangeably, there’s an important difference:

• A background check is a broad, informal term that refers to the process of investigating a person’s history to evaluate their qualifications, character, or potential risk, through reviewing references, credentials, or public records.
• A consumer report is a legal term defined under the Fair Credit Reporting Act (FCRA). It refers to background information provided by a CRA. If an employer uses a CRA to obtain background information such as criminal history, credit history, or employment verification, that information is legally classified as a consumer report.

Core Components of a Consumer Report

Below is a detailed breakdown of what’s typically included:

1. Criminal Records

This section may involve multiple levels:

• County Criminal Records
• State Criminal Records.
• Federal Criminal Records
• National Criminal Database

National Sex Offender Registry Check

This process identifies individuals listed on the national or state sex offender registries.

2. Employment & Educational Verification

Employment Verification typically includes:

• Dates of Employment
• Job Title
• Reason for Leaving (optional)

Educational History Verification

Like employment verification, this confirms a candidate’s academic background by having the CRA contact institutions to verify:

• Degrees and Diplomas Awarded
• Dates of Attendance
• Majors/Fields of Study

3. Professional License and Certification Checks

For regulated professionals (e.g., healthcare, legal, finance), consumer reports will confirm that licenses are active, valid, and free of any disciplinary actions or suspensions.

4. Financial Records

In certain employment situations, particularly roles involving financial oversight, access to company funds, or handling sensitive financial information, consumer reports can include a review of financial records. These records can cover the following information:

• Credit history
• Credit Standing
• Bankruptcies
• Liens or Civil Judgments

Some states restrict the use of credit reports in hiring unless directly relevant to the role. In those cases, employers must justify the need, obtain applicant consent, and follow the FCRA procedures if the report affects employment decisions.

5. Motor Vehicle Records (MVR)

When a role involves operating a company vehicle or driving is a core responsibility, a Motor Vehicle Record (MVR) check may be part of a consumer report. An MVR report typically includes:

• License Status: Whether your driver’s license is valid, expired, or suspended.
• Traffic Violations: Any speeding tickets, reckless driving citations, or other moving violations.
• Accidents: Information on any accidents in which you were involved.
• Major Infractions: Records of major offenses, such as a DUI or DWI.

6. Other Specialized Checks

In addition to standard components, consumer reports may include specialized checks tailored to the nature of the job or industry, such as:

• Drug Screening and Occupational Health Services
• Civil court records
• Social media reviews

Consumer Report for Employment – Your Rights and Best Practices

Employers using consumer reports must follow the Fair Credit Reporting Act (FCRA) and, in some cases, additional state and local laws. These requirements protect applicants’ privacy, ensure fairness, and promote transparency.

Key Employer Responsibilities Include:

1. Provide Clear Disclosure

Before conducting a consumer report, employers are legally required to inform applicants, in a standalone document, that a consumer report may be used in hiring decisions. The disclosure cannot include extra language and should be easily understood.

2. Obtain Written Authorization

Before requesting a consumer report, employers must get signed, written consent from the applicant or employee. This consent must be voluntary, clearly documented, and signed by the individual. If additional checks are done during employment, new consent may be required.

3. Certification to the CRA

Before obtaining a consumer report, the employer must provide a formal certification to the Consumer Reporting Agency (CRA) advising that the report will only be used for employment purposes and that all legal requirements have been met.

4. Follow Adverse Action Procedures

If a consumer report reveals information that could negatively impact a hiring decision, the employer is legally required to follow the FCRA’s adverse action process.

• The employer must provide a pre-adverse action notice, including a copy of the report, a summary of the applicant’s rights under the FCRA, and contact information for the CRA that provided the report.
• Allow time (usually 5 business days) for the candidate to respond. This window gives the candidate an opportunity to review the report and dispute any inaccurate or incomplete information.
• If, after this period, the employer chooses to proceed with a negative hiring decision, they must then issue a final adverse action notice. The notice must include CRA contact information and the candidate’s right to a free copy within 60 days.

5. Comply with State and Local Laws

In addition to the FCRA, employers must also comply with applicable state and local laws, which may impose additional requirements. Many jurisdictions have “ban-the-box” laws, which limit when employers can ask about criminal history, often delaying it until after an interview or conditional offer. Some states also require extra disclosures, longer waiting periods before adverse action, or more detailed notices. Employers must stay aware of these varying rules to remain compliant.

6. Maintain Confidentiality

Because consumer reports contain sensitive personal information, employers have a legal and ethical obligation to protect the privacy of the individuals being screened. Consumer reports must be securely stored, shared only with decision-makers, and properly disposed of when no longer needed.

Consumer Report Background Checks with SRA Screening

At SRA Screening, we believe every consumer report represents more than compliance — it’s an opportunity to build safer, more trustworthy workplaces where people can succeed. Each report empowers employers to make informed, confident decisions while ensuring every applicant is treated with fairness, transparency, and respect.

Understanding the difference between a general background check and a regulated consumer report is essential, especially when it comes to meeting Fair Credit Reporting Act (FCRA) requirements. When employers partner with a trusted Consumer Reporting Agency like SRA, they gain the assurance that every screening is handled with accuracy, care, and full legal compliance. Because when compliance meets care, screening becomes more than a requirement—it becomes a reflection of integrity, trust, and the commitment SRA brings to every partnership.

DISCLAIMER: This blog post is for informational purposes only and is not legal advice. Please consult a qualified professional before making any decisions.

The FCRA is enforced federally, but states may also implement it and have their own consumer reporting laws. You may have additional rights under state law. For more information, contact your state or local consumer protection agency or your state attorney general.