Yes, some states do have laws that are more stringent than FCRA or the Fair Credit Reporting Act. The FCRA are federal laws that are designed to ensure that consumer reports are as accurate and private as possible. In addition, the Fair Credit Reporting Act regulates who has access to the data and how the information can be used. The intent is to keep the data from falling into the hands of those who do not have a legitimate use for the information and to prevent people from being penalized for information that is outdated. Many of the state statutes that are stronger than the FCRA usually relate to the use of employment screening reports by employers, which organizations use to help them make more informed hiring decisions.

Employers that use outside companies to perform background checks must follow the FCRA. Companies that utilize their own staffs to perform this task are exempt from the requirements of the Federal Credit Reporting Act. In addition, if the job salary is $75,000 or more per year, employers are released from the FCRA obligations. Nonetheless, employers may still be obligated to follow state laws pertaining to fair credit reporting. An example where state law might be stronger than federal law would be in the area of employment screening. The FCRA does not require a company that conducts employment screening internally to obtain written consent forms. However, in many states such a practice would constitute a violation of state laws.

Some other examples of state laws which are more stringent than the Fair Credit Reporting Act requirements: The FCRA allows individuals to challenge inaccurate, incomplete or unverifiable information contained in their credit report. The consumer reporting agencies have 30 days in which to resolve the matter unless they “reasonably” determine the dispute to be “frivolous.” The state of Maine’s statutes require the consumer reporting agency to resolve the matter within 21 calendar days after receiving the complaint.

Also, the FCRA permits all convictions to be reported in background check reports indefinitely. However, California only allows convictions within the last seven years, with some exceptions. Another case in point, California marijuana convictions that are older than two years cannot be included in consumer background reports.