Reference Check Software and Services, With the FCRA Rules That Apply
Updated 11 min read
For HR managers and recruiters choosing a reference checking service, from survey software to a screening firm that reaches each referee. The rule most roundups skip: when a screening firm interviews a candidate's references, the Fair Credit Reporting Act treats the result as an investigative consumer report, with its own written notice due within three days. We compared 7 vendors, 5 survey platforms and 2 accredited screening firms, on how they reach referees, how they handle the FCRA, consent, fraud checks, integrations and retention. Picked by use case, never by price; read on October 22, 2026.
PBSA-accredited; contacts each referee; forms by job and location.
135+ role templates; Greenhouse, Lever and Workday listed.
When a reference check is an investigative report
The FCRA calls a report built from interviews with people who know the candidate an investigative consumer report. The statute's words are information “obtained through personal interviews with neighbors, friends, or associates of the consumer reported on or with others with whom he is acquainted”. FTC staff read “personal interviews” to include interviews “conducted by mail, telephone or electronic means, as well as in person.” So an online questionnaire does not take a reference check outside the rule. What decides it is who does the asking.
| Who reaches the referee | What the FCRA calls it | What it adds for you | Rule |
|---|---|---|---|
| Your own staff call or email the referee | Not an investigative consumer report | None under § 1681d; FTC staff say the section covers only reports a consumer reporting agency prepares | FTC staff, comment 606-2B |
| A screening firm interviews the referee by phone, email, form or in person | Investigative consumer report | The stand-alone disclosure and permission, the extra notice within three days, certification, and the adverse-action steps | 15 U.S.C. §§ 1681a(e), 1681d(a) |
| A former employer tells a screening firm only about its own dealings with the candidate | The former employer's statement is not a consumer report; the firm's report to you is | The disclosure, permission and adverse-action steps; the extra notice too when the firm got it by interview | FTC staff, comment 603(d)(2)(A)(i)-1E |
| Software sends surveys to referees and scores the answers for you | Turns on whether the vendor is a consumer reporting agency | Ask the vendor in writing; none of the 5 software vendors here states a position on its pages | 15 U.S.C. § 1681a(f) |
FTC staff are plain about screening firms: the FCRA exemption for employment agencies “does not apply to an employment screening service that conducts reference checks on behalf of employers”, and a firm's report on a job applicant's prior work is a consumer report “even where the information is communicated telephonically.” A firm that sells reports about people to employers is a consumer reporting agency under 15 U.S.C. § 1681a(f).
A software vendor that collects referee answers and scores them for a fee may or may not be a consumer reporting agency. That depends on whether it regularly assembles or evaluates information on people to furnish reports to third parties. The 5 software vendors in our roster publish no FCRA position. Ask yours in writing before you rely on its reports for a hiring decision. If you cannot get a clear answer, the cautious course is to give the investigative-report notice anyway.
The notices it adds
An investigative consumer report is still a consumer report, so everything a background check needs applies first. The interview part then adds a second notice, a promise to the firm and a duty to explain the investigation if the candidate asks.
Before the firm starts, give the background check disclosure on its own page, with nothing else on it but the disclosure, and get the candidate's written permission. The signature line may sit on that page. Our disclosure form builder drafts one and the FCRA disclosure checker tests one you already use.
15 U.S.C. § 1681b(b)(2)(A)
Mail or deliver a written notice that an investigative consumer report may be made, “not later than three days after the date on which the report was first requested”. It must say the report may cover the candidate's “character, general reputation, personal characteristics, and mode of living, whichever are applicable”, tell them they may ask for a description of the investigation, and come with the CFPB's Summary of Your Rights (the March 2023 version, required since March 20, 2024).
15 U.S.C. § 1681d(a)(1)
FTC staff say an employer “may include, with the disclosure required by section 604(b)(2)(A), a very limited notice of intent to procure an investigative consumer report”. The description of the nature and scope of the investigation may not go on that page.
If the candidate asks in writing, describe the nature and scope of the investigation in full, in writing, “not later than five days after the date on which the request for such disclosure was received from the consumer or such report was first requested, whichever is the later.” Ask your firm for its question list now, so the answer is ready.
15 U.S.C. § 1681d(b)
Certify to the firm that you gave the notice and will answer a nature-and-scope request. The firm may not prepare the report without that certification.
15 U.S.C. § 1681d(a)(2), (d)(1)
The firm has a rule of its own for the answers it collects. It may not put adverse information from an interview in the report unless it took reasonable steps to confirm it from another source with “independent and direct knowledge of the information”, or the person interviewed “is the best possible source” (15 U.S.C. § 1681d(d)(4)). Accurate's reference service, for one, counts an attempt as valid only when there is evidence it reached the best possible source.
If a reference leads you toward a no, the adverse-action steps apply as they do to any report: a copy of the report and the Summary of Rights before you decide, a reasonable wait, then the final notice. Federal law sets no fixed waiting period; a 1997 FTC staff letter called five business days reasonable, which is why many employers wait at least that long. The adverse action timeline dates each step, and the adverse action notice guide lists what each letter holds.
A willful FCRA violation can cost $100 to $1,000 per affected person in statutory damages, plus punitive damages and the other side's attorney's fees. For the investigative-report duties in § 1681d(a) and (b), the statute gives a defense: no liability if you show you kept reasonable procedures to comply.
15 U.S.C. §§ 1681n(a), 1681d(c)
- Interview-based report
- Investigative consumer report15 U.S.C. § 1681a(e)
- Disclosure and written permission
- Before the report15 U.S.C. § 1681b(b)(2)(A)
- Investigative-report notice
- Within 3 days of the request15 U.S.C. § 1681d(a)(1)(A)
- Nature and scope, on request
- Within 5 days15 U.S.C. § 1681d(b)
- Waiting period before a final no
- Reasonable; 5 business days is practiceFTC staff letter, 1997
What to do
- Decide who will contact referees: your own staff, a screening firm, or software.
- If a firm does it, add the investigative-report notice and send it within three days of ordering.
- Keep the firm's question list on file to answer a nature-and-scope request within five days.
- Run any no that rests on a reference through the pre-adverse and final notices.
The reference-check roster
The 7 vendors against the 7 things a reference check has to get right. A word in a cell is what the vendor publishes on its own site; the short line under it gives the detail. “Check with the vendor” means we could not find it there.
| Vendor | Automated survey or live contact | FCRA investigative-report handling | Candidate consent capture | Fraud and identity checks on referees | ATS integrations | Data retention | PBSA accreditation |
|---|---|---|---|---|---|---|---|
Accurate BackgroundBest for live calls under the FCRA | DocumentedThe firm contacts each referee | DocumentedIts FCRA guide names investigative reports | Built inForms by job and location | Check with the vendor | DocumentedWorkday, Greenhouse, Bullhorn | Check with the vendor | AccreditedUS and General |
HiPeople | Built inAutomated, with follow-ups | Not publishedNo FCRA position on its pages | DocumentedConsent managed centrally | Built inIP, phone and network checks | DocumentedGreenhouse, Workday, SAP | Built inYou set how long data is kept | Not on the list |
Crosschq | Built inDigital survey, 135+ templates | Not publishedNo FCRA position on its pages | DocumentedCandidate approves the request | Built inIdentity, overlap, IP and device | DocumentedGreenhouse, Lever, Workday | DocumentedDeletion on request | Not on the list |
HireRight | DocumentedSix set questions per referee | DocumentedSays it is a CRA under the FCRA | Check with the vendor | Check with the vendor | Documented70+; Greenhouse, iCIMS, Lever | Check with the vendor | AccreditedUS |
Checkster (Harver) | Built inShort mobile survey | Not publishedNo FCRA position on its pages | Check with the vendor | Built inFlags self-completed references | DocumentedWorkday, UKG, iCIMS | Check with the vendor | Not on the list |
Xref | Built inOnline survey, no calls | Not publishedNo FCRA position on its pages | DocumentedNothing collected without consent | DocumentedAlerts on unusual activity | DocumentedGreenhouse, SAP, Bullhorn | DocumentedKept as the employer directs | Not on the list |
RefNow | Built inText, email and call attempts logged | Not publishedNo FCRA position on its pages | Check with the vendor | DocumentedDetects fake references | Documented65+; Greenhouse, Lever, BambooHR | Check with the vendor | Not on the list |
None of the 5 survey platforms says on its pages whether it acts as a consumer reporting agency, so that column reads “Not published” for each. PBSA accredits background screening firms, so software vendors are not expected on its list. The two firms that are on it publish little about referee fraud checks or how long they keep reference answers: ask before you sign.
The vendors, one by one
Each card repeats the roster's answers so you can read one vendor without the table. For screening firms judged on the whole FCRA file, see FCRA-compliant background check companies.
Accurate Background
A background screening firm whose professional reference service contacts the former co-workers, supervisors and colleagues the applicant names. The questions and the number of valid attempts can be set to your own standard, and it counts an attempt as valid only when there is evidence it reached the best possible source.
An employer that wants a person, not a form, to reach each referee, inside the same FCRA file as its background check.
- Automated survey or live contactDocumentedThe firm contacts each referee
- FCRA investigative-report handlingDocumentedIts FCRA guide names investigative reports
- Candidate consent captureBuilt inForms by job and location
- Fraud and identity checks on refereesCheck with the vendor
- ATS integrationsDocumentedWorkday, Greenhouse, Bullhorn
- Data retentionCheck with the vendor
- PBSA accreditationAccreditedUS and General
HiPeople
Hiring software whose agents run reference checks end to end: they collect the answers, follow up when an answer is unclear, and send the report to your ATS or HRIS. Referees confirm the working relationship, and the platform checks their professional network, phone number and IP activity.
A team that has met fake referees before and wants identity signals on every person who vouches.
- Automated survey or live contactBuilt inAutomated, with follow-ups
- FCRA investigative-report handlingNot publishedNo FCRA position on its pages
- Candidate consent captureDocumentedConsent managed centrally
- Fraud and identity checks on refereesBuilt inIP, phone and network checks
- ATS integrationsDocumentedGreenhouse, Workday, SAP
- Data retentionBuilt inYou set how long data is kept
- PBSA accreditationNot on the list
Crosschq
Reference-check software that sends digital surveys built from more than 135 role-specific templates, launched from your ATS. Its fraud layer confirms who is vouching, whether they worked with the candidate, and flags reused contacts and IP or device patterns.
A recruiting team that lives in Greenhouse, Lever, Workday or a similar ATS and wants references without leaving it.
- Automated survey or live contactBuilt inDigital survey, 135+ templates
- FCRA investigative-report handlingNot publishedNo FCRA position on its pages
- Candidate consent captureDocumentedCandidate approves the request
- Fraud and identity checks on refereesBuilt inIdentity, overlap, IP and device
- ATS integrationsDocumentedGreenhouse, Lever, Workday
- Data retentionDocumentedDeletion on request
- PBSA accreditationNot on the list
HireRight
A background screening firm whose Professional Reference Check Report asks each referee the candidate provides six standard questions and documents the answers. Its US candidate privacy policy describes HireRight as a consumer reporting agency governed by the FCRA.
An employer that already screens with HireRight and wants a short, uniform reference added to the same order.
- Automated survey or live contactDocumentedSix set questions per referee
- FCRA investigative-report handlingDocumentedSays it is a CRA under the FCRA
- Candidate consent captureCheck with the vendor
- Fraud and identity checks on refereesCheck with the vendor
- ATS integrationsDocumented70+; Greenhouse, iCIMS, Lever
- Data retentionCheck with the vendor
- PBSA accreditationAccreditedUS
Checkster (Harver)
Harver's automated reference checking: you add the candidate's contact details, the candidate enters references, and each referee gets a short survey to answer on a phone. An algorithm judges whether each reference is genuine, catching family members posing as managers and self-completed checks.
An employer that hires through Workday, UKG or iCIMS and wants self-completed references caught before an offer.
- Automated survey or live contactBuilt inShort mobile survey
- FCRA investigative-report handlingNot publishedNo FCRA position on its pages
- Candidate consent captureCheck with the vendor
- Fraud and identity checks on refereesBuilt inFlags self-completed references
- ATS integrationsDocumentedWorkday, UKG, iCIMS
- Data retentionCheck with the vendor
- PBSA accreditationNot on the list
Xref
Online reference-check software: you build a survey from templates, the candidate submits referees, and each referee answers on mobile or desktop, with no phone call. Its surveys collect no personal information unless consent is given, and data sits in a regional Xref data centre.
An employer hiring across several countries that wants references held in a regional data centre.
- Automated survey or live contactBuilt inOnline survey, no calls
- FCRA investigative-report handlingNot publishedNo FCRA position on its pages
- Candidate consent captureDocumentedNothing collected without consent
- Fraud and identity checks on refereesDocumentedAlerts on unusual activity
- ATS integrationsDocumentedGreenhouse, SAP, Bullhorn
- Data retentionDocumentedKept as the employer directs
- PBSA accreditationNot on the list
RefNow
An automated referencing platform that chases referees with reminders and keeps a full audit trail of every text, email and phone call attempt in one place. It lists more than 65 ATS and HRIS integrations and says it detects fake references.
A staffing or healthcare team that needs a record of every attempt to reach a referee.
- Automated survey or live contactBuilt inText, email and call attempts logged
- FCRA investigative-report handlingNot publishedNo FCRA position on its pages
- Candidate consent captureCheck with the vendor
- Fraud and identity checks on refereesDocumentedDetects fake references
- ATS integrationsDocumented65+; Greenhouse, Lever, BambooHR
- Data retentionCheck with the vendor
- PBSA accreditationNot on the list
Automated survey or live contact
The roster mixes two kinds of product. Survey software asks referees to type their answers; screening firms reach the referee themselves. Neither kind changes your FCRA test above: an interview by a screening firm is an investigative report whether it happens by phone or by form.
| Kind | How the referee is reached | What the vendors publish | Where it fits |
|---|---|---|---|
| Automated survey | The candidate names referees; each one gets a link to a questionnaire on a phone or computer. | Xref: results back in 18 hours on average. Checkster: 24-hour turnaround. Crosschq: reports in under 48 hours. | Volume hiring, scored answers you can compare, fraud signals on the referee |
| Live contact by a screening firm | The firm reaches each referee and records the answers to a set or custom question list. | HireRight asks six standard questions. Accurate lets you set the questions and the number of valid attempts. | Senior or sensitive roles, referees who will not fill in forms, one FCRA file for the whole check |
Turnaround figures are the vendors' own and depend on how fast referees answer. If you already screen through an accredited firm, adding references to the same order keeps one set of FCRA forms; the firms are listed on our accredited screener roster, and the head comparison is in the best background check services for employers.
What to do
- Pick survey software when you need speed and fraud signals, and settle its FCRA status in writing.
- Pick a screening firm when a person must reach the referee, and plan for the investigative-report notice.
Method and sources
We read each vendor's own public pages and the lists named below on . A word in the table is what the vendor publishes. Where a vendor does not publish a feature, the table says “Check with the vendor” or “Not published”: ask them before you rely on it. Verdicts are by use case, never by price.
We read each vendor's own product, integration, security and privacy pages, and searched PBSA's Accredited Firms Directory with the name field blank for the full list. A vendor had to publish a reference-check product on its own site. SkillSurvey was left out because its site now redirects to an iCIMS page with no product detail; First Advantage was left out because its site blocks automated readers. The FCRA column records only what a vendor says about its own status; it is not our legal view of it.
Verdicts are editorial: no vendor can buy a verdict position or displace another vendor.
Sources read October 22, 2026
- 15 U.S.C. § 1681d (Cornell LII)
- 15 U.S.C. § 1681a (Cornell LII)
- FTC staff report: 40 Years of Experience with the FCRA
- PBSA Accredited Firms Directory
- Accurate: professional reference verification
- Accurate: background check compliance
- Accurate: background check disclosures
- Accurate: integrations
- HiPeople: reference checks
- HiPeople: privacy and security
- HiPeople: integrations
- Crosschq: reference checks
- Crosschq: fraud detection
- Crosschq: partners and integrations
- Crosschq: privacy policy
- HireRight: Professional Reference Check Report
- HireRight: US candidate privacy policy
- HireRight: partners
- Checkster by Harver: automated reference checking
- Harver: integrations
- Xref: reference checking
- Xref: automated requests
- Xref: integrations
- Xref: security and compliance
- Xref: privacy policy
- RefNow: home page
- RefNow: integrations
Questions employers ask
Is a reference check covered by the FCRA?
When a screening firm does it, yes. A report built from interviews with people who know the candidate is an investigative consumer report under 15 U.S.C. § 1681a(e), and FTC staff count interviews by mail, phone or electronic means. When your own staff call the referees, FTC staff say § 1681d does not apply, because the information is not an investigative consumer report.
Do I need the candidate's consent before a reference check?
If a screening firm runs it, yes: the stand-alone disclosure and written permission under 15 U.S.C. § 1681b(b)(2)(A), plus the investigative-report notice within three days of ordering. If you call references yourself, the FCRA does not require it; check your state's law before you rely on that. Several survey tools also ask the candidate to approve the request before referees are contacted.
Can the investigative report notice go on the background check disclosure?
FTC staff say a very limited notice of intent to get an investigative consumer report may sit with the disclosure. The description of the nature and scope of the investigation may not. Test your page with the FCRA disclosure checker.
What happens if a referee says something negative?
The firm may only report adverse interview information it has confirmed from another source with direct knowledge, or that came from the best possible source (15 U.S.C. § 1681d(d)(4)). If you then lean toward a no, send the pre-adverse notice with a copy of the report and the Summary of Rights, wait a reasonable period, and send the final notice. The full sequence is in our FCRA rules for employers.
Can reference check software catch fake references?
Several vendors say so on their own pages. HiPeople tracks IP activity and checks phone numbers and professional networks; Crosschq confirms referee identity and work overlap and checks IP and device signals; Checkster says its algorithm flags family members posing as managers and self-completed checks. None of them publishes an accuracy figure we could verify.
How long should I keep reference reports?
No federal minimum retention period for background reports was verified for this page, so check your EEOC and state record-keeping rules. When you dispose of a report, shred it or make the file unreadable, as the FTC tells employers to do. HiPeople lets you set the retention period; Xref keeps data as the employer directs.