Under an interim final rule issued on September 12, 2018, the Consumer Financial Protection Bureau (CFBP) has issued a new model disclosure form that employers and background check companies are required to use, effective September 21, 2018. The new form contains a “security freeze right” notice that must be provided to individuals as a part of Fair Credit Reporting Act (FCRA) disclosures. Failure to provide the disclosure form as required when conducting background checks can land employers in hot water, including class action litigation.
Compass Point: Employers must update their FCRA disclosure forms or use the CFPB’s new model form by September 21, 2018. Information on the CFPB’s interim final rule, including the new model disclosure form, is available here.
