The Bureau of Consumer Financial Protection recently issued a new model A Summary of Your Rights Under the Fair Credit Reporting Act disclosure form. Employers must provide this form to job applicants and employees who have had adverse action taken against them based on a background check, such as being not hired, disciplined or fired. The form serves to inform applicants and employees of their rights to obtain and dispute information provided within their background check report and to obtain credit scores.
What Are The Changes?
Effective September 21, 2018, the updated model form includes information about security freezes and fraud alerts, stemming from legislation passed earlier this year in response to various high-profile data breaches.
The Bureau is encouraging employers to use the updated form. However, to help mitigate the impact of these changes, the Bureau will allow employers to continue to use the 2012 form as long as they provide an additional page containing the new security freeze and fraud alert information. Employers may also use their own form, provided it is substantially similar to the one provided by the Bureau.
What Should Employers Do?
Employers that use consumer reports as part of their hiring or HR management process, whether internally or through a background screen provider, should ensure that they are providing the most up-to-date FCRA forms to applicants and employees.
For more information about the updates, visit the Bureau of Consumer Financial Protection website.
Want to learn more about the FCRA forms and how they pertain to your business? Please contact Matthew Roessler, Director of Client Development, at 215-654-9140 x. 409.