Amendments affecting notice requirements under the Fair Credit Reporting Act (FCRA) went into effect on September 21, 2018. These amendments were part of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155) (Act) passed by Congress on May 24, 2018.
The Act allows consumers to request a security freeze from nationwide credit reporting agencies, and extends the length of time for initial fraud alerts from 90 days to one year. The Act also imposes various requirements for how consumers must receive notice of these new rights.
Employers who conduct background checks using a consumer reporting agency are subject to the FCRA, which imposes notice requirements related to such background checks. This includes a "Summary of Rights," which must be provided to candidates before a background check is conducted, as well as in connection with any potential adverse action that is being considered.
Employers should update the "Summary of Rights" document being used in the background-check process (through the employer directly or through the employer's third-party background check agency) to the CFPB's new model notice, or another notice that includes the new required language.
The CFPB's updated model notice can be found here. The new language is located in the section titled "Consumers Have the Right to Obtain a Security Freeze." This notice is also available in Spanish.
