CFPB Requires Updated Forms for Background Screening

Angela Preston

 

The Consumer Financial Protection Bureau (CFPB) has exercised its regulatory authority by making a change to three notices required by the Fair Credit Reporting Act, effective January 1, 2013. The change directs consumers, furnishers and users of employee background checks to the CFPB instead of the Federal Trade Commission (FTC), and are part of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) that President Barack Obama signed into law on July 21, 2010. While the CFPB does not have supervisory authority over background checks, it does have rule making and enforcement powers over the FCRA.

The forms that are being updated are all used in the background screening process, and are required by the FCRA. They include:

To comply with the new law, employers and CRA’s will need to stop using the old forms/notices by January 1, 2013.

This is one of the first actions taken by the CFPB to directly impact employment background checks, but we don’t expect it to be the last. The CFPB has been called upon by consumer watchdog groups to make this change and other changes that could impact the screening process.  Look to EmployeeScreenIQ to keep you up-to-date, and contact us with any questions.

Editorial Note: This post is the lead story for our October Issue of BTW.  Check out Angela’s video on the CFPB’s actions and how they affect you.

Angela Preston
Follow Me

Angela Preston

Vice President of Compliance & General Counsel at EmployeeScreenIQ
Angela Preston has more than 20 years as a licensed attorney and over 10 years in the background screening area. She serves on the Board of Directors of the National Association of Professional Background Screeners (NAPBS), is a member of the NAPBS Background Screening Credentialing Council (BSCC), and is actively involved in the Society for Human Resource Management (SHRM) and ASIS International. Angela is also a member of the Ohio State and Columbus Bar Associations. Angela has direct oversight and management of compliance programs, and will provide guidance in complex legal matters including state and federal legislation, EEO law, client education, adjudication, pre/adverse action process, NAPBS Accreditation and client and vendor contract management.
Angela Preston
Follow Me
Tweet
Share
Email
Share