Employers Must Use Revised FCRA Forms

For employers performing backgroundchecks, the standard notices that employers routinely use to fulfill their obligations under the Fair Credit Reporting Act (FCRA) have been revised by the Consumer Financial Protection Bureau (CFPB). Use of the new forms was required effective January 1, 2013.

Consumer reports are routinely used by employers in connection with employee background checks, and the FCRA imposes procedural requirements on employers that use such reports in connection with decisions to hire, fire, promote, demote, or reassign current or prospective employees.  

The CFPB has issued the following revised model forms which must now be used for purposes of complying with FCRA obligations:

• Summary of Consumer Rights, which employers are required to furnish to individuals before taking adverse actions affecting a person’s employment; 

• Notice of Furnisher Responsibilities, which explains the FCRA’s obligations imposed on consumer-report furnishers, including the obligation to provide a copy of the consumer report and advance notice of adverse actions based on the report’s contents; 

• Notice to Users of Consumer Reports of Their Obligations Under the FCRA, which summarizes employer’s duties as users of consumer reports.

For employers the new summary can be found at: http://www.consumer.ftc.gov/articles/pdf-0096-fair-credit-reporting-act.pdf.  

Scott S. Moore
 Jonathan J. Wegner

Read the Full Newsletter: Health Law Advisory January 31, 2013