This FCRA compliance checklist adds duties, amounts and changes to the overview.
What does the FCRA require?
| Step | In plain words |
|---|---|
| Disclose and certify | Before ordering from a consumer reporting agency (CRA): a stand-alone written disclosure, written authorization and certification. |
| Before acting | Before acting on the report even partly, send a copy and the CRA's summary of rights. Some regulated trucking jobs hired remotely get notice within 3 business days after acting. |
| After acting | Send notice naming the CRA, saying it did not decide, with free-report (60 days) and dispute rights. |
| Illinois credit | No credit-history question or credit report unless a listed need applies, such as custody of cash or marketable assets worth $2,500 or more. |
| Illinois records | The Human Rights Act bars arrest-record use unless the law allows; a conviction counts only with a job link, written notice and 5 or more business days to respond. JOQAA (Job Opportunities for Qualified Applicants Act) bars criminal-history questions by private employers with 15 or more employees until the applicant is qualified and picked for interview, or has a conditional offer; exceptions exist. |
Key numbers and dates
| Item | Amount | Year or status |
|---|---|---|
| Willful violation | $100 to $1,000 per consumer or actual damages, plus any punitive damages, costs and attorney fees. "Willful" includes recklessness. Negligence: actual damages, costs, fees | Current statute |
| False pretenses | Willful, by a natural person: actual damages or $1,000 if greater. Knowing, willful false pretenses is also a crime: a fine, up to 2 years in prison, or both | Current statute |
| Suit deadline | 2 years from discovery or 5 years from the violation, whichever comes first | Current statute |
| Civil penalty (FTC) | Up to $4,983 per violation, knowing pattern or practice | 2025 amount, same in 2026 |
- Disclosure and written authorization
- Report copy, summary of rights; reasonable wait
- At least 5 business days to respond
- Adverse-action notice
Source: 775 ILCS 5/2-103.1; 15 U.S.C. 1681b, 1681m
Recent and pending changes
- October 28, 2026: the EEOC voted to rescind the 2012 arrest and conviction guidance. Title VII still applies.
The named checklist: your FCRA compliance checklist
The Copy-Before-Cut Screening Ladder:
- Slip: give the disclosure in its own document; get written authorization; certify to the CRA.
- Role: match the job to a listed Illinois credit exception; skip arrest questions.
- Copy: before an adverse decision, send the report copy and summary of rights.
- Wait: allow a reasonable time; give at least 5 business days for an Illinois conviction response.
- Notice: send the adverse-action notice with the CRA's details.
- Shred: keep hiring records at least 1 year (EEOC rule; longer after a charge), then dispose of report data securely. See record retention.
Common mistakes
- Burying the disclosure in the job application.
- Acting before sending the report copy.
- A final notice missing the CRA's details.
- Ordering credit reports for jobs outside the Illinois list.
When to bring in an attorney
- A claim, demand letter or class-action notice.
- Drafting disclosure or adverse-action templates.
- A conviction-based decision under Illinois, Cook County or Chicago law.
How we can help
We handle the U.S. payroll, tax and accounting side, alongside your attorney, Canadian CPA or Indian CA. See payroll and employer compliance and bookkeeping and accounting.
Frequently asked questions
Do I need written consent for every background check?
For a CRA report used in hiring, generally yes. Checks you gather yourself are not CRA reports, though state law applies.
How long must I wait after the pre-adverse notice?
Federal law fixes no period; FTC staff say allow a reasonable time. Illinois gives at least 5 business days to answer a conviction notice.
Do I need a Red Flags program?
Only creditors and financial institutions with covered accounts do. Billing clients after service alone does not make you one.
Can a candidate sue over an FCRA mistake?
Yes. See the damages above.
Official sources
- Federal Trade Commission: Using Consumer Reports, What Employers Need to Know
- Cornell Law School LII: 15 U.S.C. 1681n, civil liability for willful noncompliance
- eCFR: 16 CFR Part 682, Disposal of consumer report information
- Federal Register: FTC civil penalty inflation adjustments, 91 FR 58446
- Illinois General Assembly: Job Opportunities for Qualified Applicants Act (820 ILCS 75), Section 15
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.