On September 12, 2018, the Consumer Financial Protection Bureau (CFPB), the federal agency which oversees the Federal Fair Credit Reporting Act (FCRA), issued an interim final rule updating the agency’s model FCRA notice. This Form is known as “A Summary of Your Rights Under the Fair Credit Reporting Act.” Starting September 21, 2018, employers should replace their current Form with new Form issued by CFPB as described below.

In most circumstances, the FCRA requires employers to provide the Form to individuals that fail a background check. When an applicant or employee fails a background check covered by the FCRA, and before taking an adverse action, the employer is required to provide the individual with a copy of the CFPB’s "A Summary of Your Rights Under the Fair Credit Reporting Act," a copy of his or her report, and an opportunity to dispute the information contained in the report.

Employers should begin using the new form beginning September 21, 2018. The updated form is available here. If employers do not update the form, they could face liability for violating the FCRA.

Employers should have their background and credit check forms and procedures reviewed by legal counsel to ensure compliance with the requirements of the FCRA. 

Questions relating to this article can be directed to our banking or employment law attorneys.


*This article is intended for informational  purposes only and is not intended to be legal advice. Please contact an attorney with specific questions. 

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