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Updates to Notice of Rights Under the Fair Credit Reporting Act
September 21, 2018
Updates to Notice of Rights Under the Fair Credit Reporting Act — Effective September 21, 2018
This Client Alert is intended for employers who run background checks on current or prospective employees pursuant to the Fair Credit Reporting Act.
On September 12, 2018, the Bureau of Consumer Financial Protection issued an interim final rule updating the model disclosure forms to comply with new notice requirements under the Fair Credit Reporting Act (“FRCA”). On or after September 21, 2018[1], notice of two recent changes to the FCRA must be provided to anyone required to receive a summary of rights under Section 609 of the FCRA as the subject of a background check.
Relevant Changes to the FCRA
In an effort to increase consumer protections related to identity theft, the FCRA has been updated as follows:
- Consumer reporting agencies are now required to provide free “security freezes” to consumers in order to prohibit a consumer reporting agency from disclosing the contents of a consumer report that is subject to such security freezes.
- The minimum duration of initial fraud alerts has increased from 90 days to one year.
Notice Requirement of Relevant Changes to the FCRA
Notice of the above-mentioned changes must be provided to anyone required to receive a summary of rights under the FCRA in connection with a background check.
What Should Employers Do to Comply?
Employers who run background checks on current or prospective employees must provide notice of the relevant changes to the FCRA, along with the previously required disclosures under the FCRA, by issuing updated disclosure forms. Specifically, employers must provide a Summary of Consumer Rights regarding rights to obtain and dispute information in consumer reports and to obtain credit scores.
Employers may either (i) supplement their current disclosure forms with the additional notice requirements, or (ii) use the Bureau’s updated model Summary of Consumer Rights form found here in English and Spanish: https://www.consumerfinance.gov/about-us/newsroom/bureau-consumer-financial-protection-issues-updated-fcra-model-disclosures/
Should you have any questions or require additional information, please contact Andrea B. Neuman, Esq. Partner and Chair of the Employment Practice, for more information.
Andrea B. Neuman
Partner, Chair, Employment Group
(212) 655-3513
abn@msf-law.com
Samantha L. Frenchman
Associate, Employment Group
(212) 655-3580
slf@msf-law.com
The information contained in this memo is not intended to provide legal advice but is to report news to our friends of the firm.