New Disclosure Forms Required for Employers to Comply with the FCRA when Conducting Background Checks of Employees/Applicants
PHOENIX (September 21, 2018) – Many employers use consumer reporting agencies to obtain background checks or consumer reports on employees or job applicants. When doing so, they are required by the Fair Credit Reporting Act (FCRA) to provide a “Summary of Consumer Rights” form to the employee or applicant. That form was recently amended in connection with recent legislation to include language providing notice to consumers of new security/credit freeze rights.
Employers (who use such third-party agencies for background screenings) were required to update their disclosure forms by September 21 to ensure compliance.
A separate form, known as the “Summary of Consumer Identity Theft Rights” was also updated to include the new freeze rights, but that form is not generally required in the employment context.
The new forms and more information regarding the changes can be accessed at the website of the issuing agency, Consumer Financial Protection Bureau (CFPB), at the following link: https://www.consumerfinance.gov/about-us/newsroom/bureau-consumer-financial-protection-issues-updated-fcra-model-disclosures/