By January 1, 2013, employers that conduct background checks must use the updated mandatory notices required by the Fair Credit Reporting Act (“FCRA”). The FCRA imposes certain federal guidelines for conducting employment background checks and establishes criteria that must be followed before an employer may take any adverse employment actions based on the obtained background reports.
When the Dodd-Frank Wall Street Reform and Consumer Protection Act became effective July 21, 2010, the Consumer Financial Protection Bureau (“CFPB”) replaced the Federal Trade Commission (“FTC”) as the regulatory entity for most of the FCRA provisions. The CFPB recently issued a new regulation requiring employers to use the revised Summary of Consumer Rights, Notice to Users of Consumer Reports of their Obligations, and the Notice to Furnishers of Information of their Obligations.
The revised forms simply replace “FTC” with references to “CFPB,” and they are available here for your use.