By Helena Oroz*
This might be the shortest alert you read all year, but following this simple advice will be the easiest step you take towards Fair Credit Reporting Act (FCRA) compliance all year.
Here’s the scoop:
There is a form notice called “A Summary of Your Rights Under the Fair Credit Reporting Act.” If you are an employer that uses a third party to run background checks on applicants and employees, you should know exactly what this is. (If you do not know what this is, you should probably call me.)
I advise employers to provide this form to applicants and employees up front, with their FCRA Disclosure and Authorization, as well as with any pre-adverse action notice that may go out later. Did you know this form notice is also available in Spanish?
As of this Friday, September 21, 2018, employers must use a new version of this form notice. Employers may choose to continue using the old form in conjunction with a separate page that includes the new language, but why add paper to this process? Just use the new form notice (and/or ensure that your background check company is using the new version).
The Bureau of Consumer Financial Protection (BCFP) issued the new version to (1) add a notice about the consumer’s right to a security freeze and (2) update contact information listed for certain FCRA enforcement agencies.
These changes do not impact in any way how you, as an employer, conduct background checks. You just have to use a new form notice. (I told you this was easy.)
You can find the new version of “A Summary of Your Rights Under the Fair Credit Reporting Act” here:
https://files.consumerfinance.gov/f/documents/bcfp_consumer-rights-summary_2018-09.docx.
Does this mean more (hopefully meaningful) FCRA updates to come from the BCFP?
Stay Tuned.
*Helena Oroz is an associate with the firm’s Employment Group and frequently advises clients on FCRA compliance issues. If you have questions about FCRA or just want to chat about this development, please contact Helena at 216-696-4441 or hot@zrlaw.com.
