March 17, 2023
CFPB Publishes New FCRA Notice of Rights, Effective April 19th
If you use a third-party vendor to obtain background reports, aka consumer reports, on applicants and/or employees, you are likely already aware of (and hopefully complying with) the notice requirements of the Fair Credit Reporting Act (FCRA). Don’t let the name mislead you. The notice requirements apply to much more than just credit history reports, including and not limited to reports regarding an individual’s history related to criminal records, education, work experience, driving records, and more.
If you receive adverse information about an individual that might impact your employment decision, you are required to give the individual this specific notice of rights, along with some other information.
On March 17, 2023, the federal Consumer Protection Financial Bureau published notice that a final rule that takes effect April 19, 2023. The reason this rule may not have gotten much of attention may be because, as the CPFB describes it, the purpose is, “to make non-substantive corrections and updates to Bureau and other Federal agency contact information found at certain locations…revises the chapter heading…and provides a Bureau website address…”
While the rule takes effect this month, the mandatory compliance date for using the new notice is March 20, 2024. In the interim, you may want to go ahead and start using the new form now, to reduce the odds you forgot to do so next year. You can download the new form in English here and in Spanish here.