New Form Required for Background Checks

New Form Required for Background Checks

The Consumer Financial Protection Bureau (CFPB) has taken over rulemaking and enforcement responsibilities for the Fair Credit Reporting Act (FCRA) and has updated an important form related to background checks. Employers are required to start using this form by January 1, 2013.

The FCRA is the federal law that imposes a number of obligations on employers when they run background screenings on potential and current employees.

If an employer decides not to hire an applicant based on the results of a background check without complying with the FCRA, the employer is subject to liability under the FCRA.

The Bureau has updated the form entitled, “A Summary of Your Rights Under the Fair Credit Reporting Act” (Summary of Rights).

The main difference between the old form and the new one is that they indicate that consumers may now obtain information about their rights under the FCRA from the CFPB, instead of the FTC.

The new form can be viewed or downloaded here: extlink

To protect themselves legally, employers need to be familiar with how to use the document “A Summary of Your Rights Under the Fair Credit Reporting Act” as well as Pre-Adverse Action Letters, and Adverse Action Letters.

If you would like us to send you more information on how to use these important documents, complete the contact form located at the following link and use the subject line – Adverse Action – send info

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