Feb 6, 2024

Earlier this month, the Consumer Financial Protection Bureau (CFPB) published an updated version of “A Summary of Your Rights Under the Fair Credit Reporting Act.” Many also know this crucial FCRA publication as the “Summary of Consumer Rights.” The CFPB’s website also provides Spanish and English versions of the Summary.

FCRA Requirements

Both consumer reporting agencies and employers must provide this Summary to employees and applicants. Providing this Summary ensures they comply with the Fair Credit Reporting Act (FCRA). In addition, employers must provide applicants with this Summary whenever they give an applicant a pre-adverse action notice.

The CFPB has issued this final rule to make non-substantive corrections. In addition, the agency included updates to the contact information of the CFPB and other Federal agencies mentioned in several regulations. Interested parties may find this information throughout Regulation V, which implements the FCRA. It includes the Federal agency’s contact information supplied with a “Summary of Your Rights Under the FCRA.”

The “Office of the Comptroller of the Currency (OCC); the Federal Deposit Insurance Corporation (FDIC); the National Credit Union Administration (NCUA); the Department of Transportation (DOT); the Surface Transportation Board (STB); the United States Department of Agriculture, Agricultural Marketing Service (USDA-AMS); the United States Small Business Administration (SBA); the Securities and Exchange Commission (SEC); and the Federal Trade Commission (FTC),” will also see corrections. Interested parties can find relevant information in Appendix A of Regulation B. The CFPB will also correct its contact information, found in Appendix D.

When to Expect the Change

The final rule will take effect on April 19, 2023. When it takes effect, it will also make various non-substantive changes in Regulation V. But, the mandatory compliance date for the amendments to Appendix K to Regulation V will be later on March 20, 2024, as stated in the final rule. Therefore, employers and CRAs must ensure they update their forms by March 20, 2024. However, employers and CRAs could delay changing their forms because the Summary has a typo that the CFPB has not fixed.

This change is a good example of how employment-related rules and forms frequently change. The best way to ensure your company stays up-to-date with changes related to background checks is to partner with a trustworthy background check company.

 


Disclaimer:
Information provided here is for educational and informational purposes only and should not constitute as legal advice. We recommend you contact your own legal counsel for any questions regarding your specific practices and compliance with applicable laws.

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