The federal Fair Credit Reporting Act (FCRA) requires that employers comply with certain notice procedures before they can use a third party credit reporting agency (CRA) to obtain a credit report, including an investigative report and criminal background check. Before an employer may obtain a background check on an applicant or employee from a CRA, the applicant or employee must be given certain information about the scope of the background check and must consent to the background check. Employers must provide applicants and employees with a copy of the FCRA’s “Summary of Consumer Rights” form before ordering the investigative report and also prior to taking an adverse employment action. The main change in the form is that the employee/applicant must now contact the newly created Consumer Financial Protection Bureau (CFPB), rather than the Federal Trade Commission (FTC), about their rights under the FCRA.
Beginning January 1, 2013, employers must use an updated version of the Summary of Consumer Rights form to comply with the FCRA. The revised form is available HERE.