Facts To Know About Fair Credit Reporting Act India

Background verification also involves assessment of an individual’s identity, profile and reputation. This is done through verification of employment details, education credentials, criminal records, address and much more. However, verification is different from Profiling.

Candidate Profiling ensures future behaviour of the candidate, while background checks predict based on the information from past. Both serve as an indicator of what to expect from an individual in future. Background verification is a time based model where the individual’s past is screened and using material evidences and facts, the truth is found out. Also, results of profiling is an indicator of how the candidate will perform in future. It is a probabilistic model where one predicts the future behavior of an individual. In contrary, background verification is a time based model where the individual’s past is screened and using material evidences and facts, the truth is found out.

Background screening has become increasingly important in today’s world mostly due to the growing white collar crimes. It has been observed that many criminals who were convicted and served jail terms, went ahead and got high paying white collar jobs in other cities. It is often quite tough to trace such people who may have changed their names and even their identity to get a new job with a good salary. The only choice left for employers is to go for background checks which include a thorough investigation so that it becomes easy to find out about the person’s past and predict his or her behavior in the future.

Fair Credit Reporting Act (FCRA) is a legislation in India which regulates the use of information related to Consumer Credit Information, its collection and dissemination. In U.S. Fair Credit Reporting Act (FCRA) lays down regulations for use of credit and it also imposes penalties for alterations or leakages of credit data. 

Debt financing is used by companies to fund their operations when they do not have sufficient cash flow or enough equity to meet the obligation. It is a key component of any lending decision and every lender would require some basic inputs such as the company’s credit score or rating, historical loan performance and unpaid debt in order to evaluate the risk and lend. The Fair Credit Reporting Act (FCRA) of 1970 provides consumers certain rights when a credit bureau or company checks their credit file. If you have applied for a loan and been turned down because of the information in your file, you have the right to know why and to have major errors fixed. You have the right to ask that false or misleading information be removed from your credit file. The FCRA specifies how negative items can be added, changed and removed from a consumer’s credit history, otherwise known as a Consumer’s Annual Credit Report by the three major credit bureaus in the U.S., Experian, Equifax and Trans Union.

Taking care of your credit file is a great way to save money on things that matter like insurance and cars. In order to avoid unnecessary financial hassles and problems in the future, we’re here to help you maintain your credit health or repair any blemishes on your credit report.