The Fair Credit Reporting Act, or the FCRA, protects the privacy rights of individuals applying for employment or for credit or consumer loans. This law requires all employment and consumer loan applicants to provide detailed information about their current financial situation . It also requires employers to verify that individuals are not receiving false claims for compensation based on their past employment. It is important to note that the FCRA does not apply to criminal background checks. The FCRA only applies to employment background check companies.