Updated FCRA Form for Background Checks Must Be Used Starting September 21
The federal Bureau of Consumer Financial Protection has released an updated version of the Summary of Rights notice required by the federal Fair Credit Reporting Act (FCRA). Employers must use the new version beginning on September 21, 2018.
The updated “A Summary of Your Rights Under the Fair Credit Reporting Act” notice now includes a notice to consumers about their right to request a security freeze on their credit reports.
This updated notice is the result of the Economic Growth, Regulatory Relief, and Consumer Protection Act (Act) that was passed by Congress in May 2018. The Act requires consumer reporting agencies to provide consumers with free “national security freezes,” which will restrict prospective lenders from obtaining access to a consumer’s credit report, thereby making it harder for identity thieves to open accounts in the consumer’s name. In addition to requiring that the agencies provide the security freezes to consumers, the Act requires that consumers receive a notice regarding the new security freeze right in the Summary of Rights notice required by the FCRA.
Employers conducting backgrounds checks of applicants or employees should confirm that they are using the new version of the Summary of Rights Under the Fair Credit Reporting Act notice.
CalChamber members can access background check-related forms, including the updated “Summary of Rights Under the Fair Credit Reporting Act,” in the Forms section on HR California. Not a member? See how CalChamber can help you.