Requesting a Credit Report to Establish an Applicant's Employment Eligibility

question 27

True/False

Requesting a credit report to establish an applicant's employment eligibility is illegal according to the Fair Credit Reporting Act.

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Definitions:

Capital Facilities

Physical assets that are significant in nature, used in operations such as buildings, roads, and machinery, fundamental to conducting business or providing services.

Expected Rate of Return

Refers to the profit or loss an investor anticipates on an investment that has various known or expected rates of return.

Interest Rate

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal amount per year.

New Machinery

Refers to recently developed or acquired equipment that is used in manufacturing or production processes.