This page covers what the Fair Credit Reporting Act (FCRA) asks of employers who use consumer reports. Basics are in the FCRA overview.
What the law requires
| Requirement | In plain words | Where it comes from |
|---|---|---|
| Disclosure and consent | Before ordering a job-related report, give a clear stand-alone written notice and get written permission | 15 U.S.C. 1681b(b)(2)(A) |
| Adverse action | Before acting on a report, send its copy and the agency's summary of rights. Afterward, send a notice naming the agency, saying it did not decide, and explaining the free-report and dispute rights. Some trucking jobs differ | 1681b(b)(3); 1681m(a) |
| Permitted use and disposal | Use reports only for a permitted purpose; dispose of them and data taken from them with reasonable measures, such as shredding or erasing | 1681b(a); 16 CFR 682.3 |
| Illinois credit history | No credit inquiry or report unless a listed bona fide requirement applies, such as required bonding, or custody of or unsupervised access to $2,500 or more in cash or marketable assets | 820 ILCS 70/10 |
| Illinois criminal records | Unless another law allows it, arrest records may not be asked about or used, and a conviction may be used only if substantially related to the job or an unreasonable risk, after written notice and at least 5 business days to respond. Covered employers wait for an interview or conditional offer to ask, with exceptions | 775 ILCS 5/2-103, 2-103.1; 820 ILCS 75/15 |
Cook County (Code 42-35) and Chicago (Municipal Code 6-10) add their own rules for employers operating there; see the Cook County Human Rights Ordinance page.
Key numbers and dates
| Item | Amount or date | Year in force | Source |
|---|---|---|---|
| Time limit to sue | Earlier of 2 years after discovery or 5 years after the violation | Current | 1681p |
| Age of reported items | Most negative items 7 years, bankruptcy 10, convictions no FCRA limit; limits do not apply to credit reports for jobs paying $75,000 or more a year | Current | 1681c(a), (b) |
- Stand-alone notice and written permission
- Report copy and summary of rights; no fixed wait (FTC staff, 2011: a reasonable time)
- At least 5 business days to respond
- Adverse-action notice; free report on request within 60 days
- Shred or erase the report data
Source: 15 U.S.C. 1681b, 1681m; 775 ILCS 5/2-103.1
Recent and pending changes
- Oct 28, 2026 (final): the EEOC voted to rescind its 2012 arrest and conviction guidance, effective immediately (release of Oct 29). Title VII still applies, and the 2014 EEOC-FTC background check guide was still posted on Oct 29.
- Jul 31, 2026 (signed; effective Jun 1, 2027): Illinois Public Act 104-744 adds Sec. 2-103.5 to the Illinois Human Rights Act: employer criteria with a discriminatory effect, including by arrest or conviction record, are unlawful if the employer cannot show they are job related and consistent with business necessity, or if the worker shows a less discriminatory practice could meet that need.
Penalties and enforcement
The FTC, the CFPB, other agencies and state attorneys general can enforce the FCRA, and people can sue. In Illinois, the Department of Labor enforces the timing law.
| Tier | What can follow |
|---|---|
| Negligent violation | Actual damages, costs and attorney fees |
| Willful violation | Actual damages or $100 to $1,000 per person, plus punitive damages, costs and fees |
| Willful false pretenses | An individual: actual damages or $1,000, whichever is greater. Knowing, willful cases can also bring a fine, up to 2 years, or both |
| FTC civil penalty | Up to $4,983 per knowing pattern-or-practice violation (2025 amount, unchanged for 2026) |
| Illinois timing law | Warning and 30 days to fix, then up to $500, then up to $1,500, then up to $1,500 per 30 days |
Next, see the checklist and FAQs.
Official sources
- Cornell Law School: 15 U.S.C. 1681n, civil liability for willful noncompliance
- Cornell Law School: 15 U.S.C. 1681m, duties on adverse action
- U.S. EEOC: EEOC votes to rescind enforcement guidance on arrest and conviction records
- eCFR: 16 CFR Part 682, disposal of consumer report information
- Illinois General Assembly: Job Opportunities for Qualified Applicants Act, 820 ILCS 75/20
This page is a plain-language summary. The official source controls if there is any difference.