NEW FCRA SUMMARY OF RIGHTS FORM REQUIRED FOR EMPLOYERS
Beginning at the first of the year, employers are now required to use a new version of the Fair Credit Reporting Act’s Summary of Rights form. This change was prompted by the Consumer Financial Protection Bureau (CFPB), who replaced the Federal Trade Commission as the agency overseeing rulemaking and enforcement of the FCRA. The new Summary of Rights issued by the CFPB instructs individuals to contact the CFPB, instead of the Federal Trade Commission, for more information about their rights under the FCRA. The list of contacts included in the Summary of Rights has also been updated. Employers should begin using the new Summary of Rights form immediately. A link to the form can be found HERE.
Employers who aren’t familiar with the FCRA need to be. That law applies when an employer procures a consumer report, like a criminal background check, from a third party and uses that report for employment purposes. AND, the FCRA requires that an employer make a clear and conspicuous disclosure to the employee as well as obtain the employee’s written consent before procuring such a report. This written consent must come from a document that contains only the disclosure, rather than being included with other employment documents.
Finally, it’s worth nothing that, while the content of the Summary of Rights has changed, the FCRA’s consent requirements have not been affected.