Last year, on March 17, 2023, the Consumer Financial Protection Bureau (CFPB) published a revised Summary of Consumer Rights Under the Fair Credit Reporting Act. Effective March 20, 2024, employers are required to start using the revised Summary of Consumer Rights to comply with the FCRA.
What changed in this version of the FCRA Summary of Rights?
The revised summary supersedes the version published in October 2018. Notable updates to the FCRA Summary of Rights include the following:
- Non-substantive corrections: Minor errors from the previous version have been corrected.
- Updated contact information for certain governmental agencies: Contact information for certain governmental agencies, including the CFPB, the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union (NCUA).
- Updated references to obsolete business types.
As with the 2018 version, employers must provide the revised FCRA Summary of Consumer Rights to applicants and employees before taking any adverse action based on a consumer report. It must also accompany any pre-adverse action notices as well. The revised FCRA Summary of Consumer Rights can be found here.
Implications for employers
The updated FCRA Summary of Consumer Rights applies to all employers who use a third party to conduct background checks on applicants and employees. Understanding and complying with the updated FCRA Summary of Rights is crucial for HR professionals across the United States.
Verified Credentials has created a step-by-step FCRA compliance checklist that can be downloaded here to help employers ensure they are prepared. Employers should consult their legal counsel to understand these changes and ensure compliance with the law.
