Inspections for FCRA Compliance: 5 Essential Questions Answered
In 2020, a whopping 47 percent of Americans had their identities stolen. And nearly 30 percent of these crimes were credit card fraud.
Does your business run credit reports? To protect your customers' information, you need to undergo an inspection for FCRA compliance. Here are the top five things to know about on-site inspections.
1. What Is an FCRA Inspection?
The Fair Credit Reporting Act (FCRA) requires on-site and external inspections for businesses that check consumers' credit.
The purpose of these inspections is to make sure the business is a legitimate business and that consumers' credit data is secure.
On-site inspections investigate the interior and exterior of your workplace for potential threats to consumer credit data. The external inspection is a drive-by inspection.
2. Who Needs FCRA Inspection Services?
As of November 2015, any entity wishing to access credit reports must undergo a site inspection. This includes employers running credit checks on prospective employees.
This inspection requirement applies to you whether you run your business out of an office or your home.
3. How Do FCRA Inspections Work?
On the day of your inspection, a licensed inspector will come to your business. The entire inspection will last about 30 minutes, during which time your inspector will want to verify two things.
Firstly, the inspector will check that all credit information is stored securely. Secure storage includes locking files away in a filing cabinet drawer, a safe, or a filing room.
Next, the inspector will ensure that your business is legitimate. This includes that your business is fully authorized to operate in the jurisdiction and that you're carrying out business legally.
These days, a physical FRCA inspection isn't your only option. You can also request virtual inspections.
4. Why Do FCRA Inspections Matter?
Inspections protect consumer information against crime and fraud. But inspections also protect your business from damages settlements and FCRA violation fees.
It's not uncommon for victims of credit theft or fraud to go after the entity responsible for the breach. Plaintiffs can sue for thousands of dollars in damages when their credit information gets compromised.
If you violate the FCRA's inspection requirements, you could get fined $100–$1,000. And that means $100–$1,000 per violation, which can rack up quickly.
5. Why Choose ComplyTraq for FCRA Inspections?
Many companies offer on-site inspections for compliance with the FCRA. So, why choose ComplyTraq?
Unlike other providers, we don't charge a monthly minimum for inspections. Plus, we'll only charge you after our professionals complete the inspection.
ComplyTraq's inspections are also certified by the three major credit bureaus — Equifax, Experian, TransUnion — and LexisNexis.
Our customers love our ability to get you onboarded fast, and your inspection approved even faster. And our 16,000 inspectors are available to inspect businesses in all 50 US states.
Most importantly, we can customize our inspection process based on your unique needs. Whether you need a virtual inspection, help with business credentialing, or FCRA compliance training, we have you covered.
Need an FCRA Compliance Inspection?
The FCRA mandates on-site inspections for all businesses that pull consumer credit reports. You can also currently ask for a virtual inspection to protect your employees and customers.
Looking for FCRA compliance services? Call ComplyTraq today to schedule your inspection.