Presentation to National Conference on Privacy, Technology & Criminal Justice Information

1. PresentationtoNational Conference on Privacy, Technology & Criminal Justice Information TOPIC Should Commercial Providers of Background Information be Regulated? • Presented by: • Peter L. O’Neill, Esq., • Chief Executive Officer • CARCO Group, Inc. Washington, DC June 1, 2000

2. Consumer Report Employer (1st Party) Applicant/ Employee (2nd Party) • Investigation must be conducted by 3rd party • Investigations of Applicant conducted by Employer • Are not consumer reports • are not governed by FCRA Consumer Reporting Agency (3rd Party)

3. EDUCATION EMPLOYMENT PROFESSIONAL LICENSES OTHER PUBLIC RECORDS CRIMINAL/CIVIL CREDIT MOTOR VEHICLES PERSONAL REFERENCES Consumer Report

4. Court order or subpoena Credit transaction involving consumer Employment purposes Underwriting of insurance License or other benefit granted by government As potential investor, servicer, insurer, with valuation, assessment of credit A Consumer Reporting Agency May Furnish Reports For (Permissible Purposes): • Otherwise legitimate business need for the information--in connection with business transaction initiated by consumer • Response to head of state for child support • Agency administered by Social Security Act (FCRA Sect. 604)

5. FAIR CREDIT REPORTING ACT CONSUMER DISCLOSURE AND GENERAL AUTHORIZATION In connection with my application for employment with _____________________________ (“Company”) I understand that a consumer report or investigative consumer report, as those terms are defined in the federal Fair Credit Reporting Act as amended (“FCRA”), 15 U.S.C. 1681 et seq., may be obtained by the Company from a consumer reporting agency (“Agency”). I further understand that the Agency may not give out information about me to the Company without my written consent. It is also understood that the Agency may not report medical information about me to the Company without my specific prior consent as to the release of such information, which is in addition to my general authorization herein. I understand that an investigative consumer report is a special type of consumer report in which information about my character, general reputation, personal characteristics, and mode of living is obtained through personal interviews. In the event an investigative consumer report is obtained, I understand that I (a) am entitled to receive a summary of my rights, and (b) have the right to request additional disclosures provided for below as follows: Upon my written request to the Company within a reasonable period of time after my receipt of this Fair Credit Reporting Act Consumer Disclosure and General Authorization, the Company shall make a complete and accurate disclosure of the nature and scope of the investigation requested. It is understood that this disclosure shall be made in writing mailed, or otherwise delivered, to me not later than five (5) days after the date on which the request for such disclosure was received from me or such report was first requested, whichever is later in time. I hereby authorize the Company now, or at any time while I am employed by the Company, to obtain a consumer report or investigative consumer report on me, as applicable. This authorization does not include the release of my medical information. I further acknowledge that I have received a summary of my rights under the FCRA. __________________________________________ _______________________ Applicant Signature Today’s Date __________________________________________ _________________________________ Printed Name Social Security Number

6. PRE-ADVERSE ACTION NOTICE CONSUMER REPORT Dear Mr./Ms. (Applicant’s last name): In connection with your application for employment, you authorized ________________ to obtain a consumer report on you. Depending upon the position for which you applied, the consumer report included one or more of the following elements: Criminal History record; Credit Report; and Social Security Number Trace. Pursuant to the federal Fair Credit Reporting Act (U.S.C. 1681 et. seq.), we are required to inform you that the information contained in the consumer report may prevent you from obtaining employment with our organization. You will be notified after ___ days following your receipt of this notice of our decision regarding your potential employment. A copy of the consumer report prepared on you is attached. In addition, please find a written summary of your rights under the Fair Credit Reporting Act. Please contact us if you have any questions regarding this matter. Sincerely, _________________________ Enclosures Sample

7. ADVERSE ACTION NOTICE FOR CONSUMER REPORT Dear Mr./Ms. (Applicant’s last name): Several days ago we notified you of the possibility that your application with _______________ might not be favorably considered. Unfortunately, we have made a decision not to extend an offer of employment to you based in whole, or in part, on information contained in the consumer report which you authorized us to obtain (a copy of which was included in our first notice to you). The following consumer reporting agency furnished the consumer report: ABC REPORTING 123 MAIN STREET DOWNTOWN, USA 12345 TOLL FREE #: 1-800-555-1234 Please be advised ABC Reporting did not make the decision to take this action and will be unable to provide you with the specific reasons why you were not hired. You have a right to obtain a free copy of the consumer report which ABC Reporting prepared on you, provided your request is received by ABC Reporting within sixty (60) days of receipt of this notice. You also have the right to dispute the accuracy or completeness of any information contained in the report by contacting ABC Reporting directly. Thank you for your interest in our company and we wish you success in your future employment endeavors. Sincerely, Sample

8. The FCRA gives several different federal agencies authority to enforce the FCRA: