I know that this post might look familiar, but there is some updated information you’ll want to check out. You might recall that the The Consumer Financial Protection Bureau (CFPB) issued new notices this past August which would be required by the Fair Credit Reporting Act effective January 1, 2013. Well, that’s still the plan, but we were just notified that the forms changed . . . again. Listed below is our original post with the updated forms. Again, please remember that these new forms are a requirement beginning on January 1, 2013.
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 employee 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:
- “A SUMMARY OF YOUR RIGHTS UNDER THE FCRA”
- “NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA”
- “NOTICE TO FURNISHERS OF INFORMATION: OBLIGATIONS OF FURNISHERS UNDER THE FCRA.”
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.