The Consumer Financial Protection Bureau (CFPB) published an updated version of a form titled “A Summary of Your Rights Under the Fair Credit Reporting Act” in both English and Spanish that is mandated for use during employment background checks by the Fair Credit Reporting Act (FCRA) on March 17, 2023, according to a notice on the CFPB website.
The CFPB – which enforces the FCRA – published a final rule on “Agency Contact Information” in the Federal Register regarding non-substantive corrections and updates to contact information on the form that took effect on April 19, 2023. The mandatory compliance date for employers conducting background checks to use the updated form is March 20, 2024.
The updated version of the form published by the CFPB in March 2023 – which is also called “Summary of Consumer Rights” – replaced the version of the form published in September 2018. The English and Spanish versions of the form are available on the “Model Forms and Disclosures” web page on the CFPB website. Below are direct links to the updated forms:
- A Summary of Your Rights Under the Fair Credit Reporting Act
- Un resumen de sus derechos en virtud de la Ley de Informe Justo de Crédito
Under the FCRA, employers and consumer reporting agencies (CRAs) must provide “A Summary of Your Rights Under the Fair Credit Reporting Act” to applicants and employees undergoing background checks to comply with the Act. Information in a background check report cannot be provided to anyone who does not have a purpose specified in the FCRA.
Companies that furnish information to CRAs also have specific legal obligations under the FCRA, including the duty to investigate disputed information. In addition, users of the information for credit, insurance, housing, or employment purposes must notify the consumer when an adverse action is taken on the basis of such reports. A copy of the FCRA is available here.
ClearStar is a leading global Human Resources technology company specializing in background checks, drug testing, and occupational health screening. ClearStar offers employers compliance services that include a full understanding of the FCRA and other laws regulating workforce screening in the United States and internationally. To learn more, contact ClearStar.
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Thomas Ahearn - Digital Content Editor
Thomas Ahearn is a Digital Content Editor at ClearStar, a leading Human Resources (HR) technology company specializing in background checks, drug testing, and occupational health screening. He writes about a variety of topics in the background screening industry including Artificial Intelligence (AI), "Ban the Box," class action lawsuits, credit reports, criminal records, drug testing, Equal Employment Opportunity Commission (EEOC), Fair Credit Reporting Act (FCRA), Form I-9, identity theft, privacy, social media screening, and workplace violence.
At ClearStar, we are committed to your success. An important part of your employment screening program involves compliance with various laws and regulations, which is why we are providing information regarding screening requirements in certain countries, region, etc. While we are happy to provide you with this information, it is your responsibility to comply with applicable laws and to understand how such information pertains to your employment screening program. The foregoing information is not offered as legal advice but is instead offered for informational purposes. ClearStar is not a law firm and does not offer legal advice and this communication does not form an attorney client relationship. The foregoing information is therefore not intended as a substitute for the legal advice of a lawyer knowledgeable of the user’s individual circumstances or to provide legal advice. ClearStar makes no assurances regarding the accuracy, completeness, or utility of the information contained in this publication. Legislative, regulatory and case law developments regularly impact on general research and this area is evolving rapidly. ClearStar expressly disclaim any warranties or responsibility or damages associated with or arising out of the information provided herein.
