What Is a Consumer Reporting Agency (CRA)? A Nonprofit’s Guide (2026)
A consumer reporting agency is the regulated company that compiles and furnishes background checks. Here’s the definition, what the FCRA requires of one, and why it matters when you screen volunteers.
On this page
When you run a volunteer background check, you don’t search the courts yourself — you rely on a consumer reporting agency. Knowing what that is (and what it’s required to do) helps you choose a screening partner wisely.
Consumer reporting agency — definition
A consumer reporting agency (CRA) is any entity that, for a fee, regularly assembles or evaluates information about consumers and furnishes consumer reports to third parties. The three big credit bureaus are CRAs — and so is any background-check company.
What the FCRA requires of a CRA
Because CRAs handle sensitive information that affects real decisions, the Fair Credit Reporting Act imposes duties on them, including to:
- Follow reasonable procedures to assure maximum possible accuracy of the information they report;
- Provide reports only for a permissible purpose;
- Handle consumer disputes and reinvestigate disputed items, generally within 30 days;
- Observe reporting limits (for example, on how far back certain non-conviction information may be reported).
Why it matters when screening volunteers
Your responsibilities as the organization (disclosure, authorization, adverse action) exist because you’re getting a report from a CRA. A good CRA makes compliance easy and reports accurately; a careless one creates risk. Ask how records are verified, whether a human reviews matches, and how disputes are handled.
VolunteerBadge and its CRA
VolunteerBadge is operated by ScreenForge Labs, LLC, an FCRA-regulated consumer reporting agency. Every potential record is reviewed by a trained person and validated at the source before it appears on your report, identity is verified so records match the right person, and disputes are reinvestigated free of charge. Visit the Trust Center →
Related: What is a consumer report? · What is the FCRA? · The full screening glossary
Screen with an FCRA-regulated CRA for $5. Create a free VolunteerBadge account →
