Does your business know about these FCRA changes?


Does your business know about these FCRA changes?

If there’s one thing you can count on, it’s that nothing ever stays the same.

That’s definitely true for screening. Whether it’s updates in technology, trends, or compliance, change happens all the time.

What’s changing now

One big regulatory change that happened this fall includes new amendments to the Fair Credit Reporting Act (FCRA). These amendments focus on the right of consumers to request a security freeze. This change impacts all employers who use third-party background checks as part of their hiring process as well as consumer reporting agencies (CRAs).

What these changes include

These FCRA changes officially started Sept. 21. That’s when employers and consumer reporting agencies were required to provide an updated copy of the “A Summary of Your Rights under the Fair Credit Reporting Act” (“Summary of Rights”) form and/or “Remedying the Effects of Identity Theft” form.

What do the updates include? The updated Summary of Rights form includes a notice that advises consumers of their rights to request a security freeze, free of charge, from all the major credit bureaus—Equifax, TransUnion, or Experian. This new notice must be provided to consumers any time a consumer is required to receive a Summary of Rights or “Remedying the Effects of Identity Theft” form under Section 609 of the FCRA.

This FCRA amendment also expands the length of time for initial fraud alerts from 90 days up to an entire year. Fraud alerts can be placed when a person has been, or believe they are about to be, the victim of fraud or identity theft.

What employers and CRAs need to do

This means employers should have immediately replaced their old FCRA Summary of Rights and “Remedying the Effects of Identity Theft” forms with updated forms. New forms should contain all the updated information and advise consumers of their rights in this area.

Even though employers would have no authority to place a security freeze—that’s up to the credit bureaus—the FCRA says employers must still assist in providing this information.

Don’t miss important law changes like this. Stay ahead of the curve with a professional screening partner like ClearStar. Want to know more? Contact us today!


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