The Consumer Financial Protection Bureau (CFPB) has issued new regulations that require employers to use updated versions of Fair Credit Reporting Act (FCRA) forms. The new regulations went into effect January 1, 2013, and affect all employers using outside agencies to conduct background checks on candidates for employment. The new regulations affect three forms: the Summary of Consumer Rights, Notice to Users of Consumer Reports of their Obligations, and Notice to Furnishers of Information of their Obligations. Most employers obtain these forms from the background check agencies. Although the general protocol surrounding the use of the forms remains the same, the content included in each form has been updated.
The responsibility for interpreting the FCRA fell on the Federal Trade Commission (FTC) until the CFPB was established in 2010. The most recent FCRA form revisions identify the CFPB as the agency primarily responsible for consumer rights and interpreting the FCRA.
Employers who do not use a credit reporting agency and complete their own FCRA forms should update to the current versions. Employers who do use a credit reporting agency should ensure that forms of that agency are updated to the current versions. If you have any questions about the new forms or compliance with FCRA regulations in general, please contact Melissa Jones.