New Summary of Consumer Rights Under the Fair Credit Reporting Act

It might be time for spring cleaning to ensure your business complies with updated background screening laws. The Consumer Financial Protection Bureau (CFPB) has recently revised its Fair Credit Reporting Act (FRCA) Summary of Consumer Rights.

The revised FRCA Summary of Consumer Rights may be used immediately, but its use is not required until March 20, 2024; it replaces an earlier version set in place in October 2018. The document includes updated information about consumer rights under the FCRA and information about how consumers can obtain a security freeze on their credit reports.

What do the recent Summary of Consumer Rights revisions include?

The revisions include:

• Non-substantive corrections
• Updated contact information for several governmental agencies, including but not limited to the following:
  • Consumer Financial Protective Bureau (CFPB)
  • Office of the Comptroller of the Currency (OCC)
  • Federal Deposit Insurance Corporation (FDIC)
  • National Credit Union (NCUA)
• Updated references to obsolete business types

What difference does this update make for employers?

There is a grace period to implement all effective changes, but employers must implement the updated Summary of Consumer Rights by March 20, 2024. At that time, the updated notice must be provided to applicants and employees when conducting background checks and taking adverse action related to background checks.

The FCRA Summary of Consumer Rights is prepared and maintained by the CFPB. It must accompany a consumer report furnished for employment purposes and any pre-adverse action notice. Verified Credentials also publishes a copy of the FCRA Summary of Consumer Rights to customer Candidate Verification Centers.

Employers may want to consult their attorney regarding the circumstances requiring delivery of the FCRA Summary of Consumer Rights, but when it is used, be sure to include this most up-to-date version.