Bureau of Consumer Financial Protection Announces Revised FCRA Form for Background Screens in 2018


As of September 21, 2018, employers utilizing third-party reporting agencies will have a revised form to file from the Bureau of Consumer Financial Protection. Employers will now be required to notify applicants and current employees of their rights under the FCRA with the Summary of Consumer Rights form in the case of any adverse action taken against them. This could include not being hired for a job, fired from a job, or being disciplined based upon a background screen.

What exactly is the Summary of Consumer Rights? It’s a document providing both job applicants and current employees with their rights to obtain and dispute any information in the consumer reports. The applicant or employee also has the rights to obtain credit scores. Employers will now have to provide this form with any pre-adverse notification. If the Summery of Consumer Rights are not included, organizations can face legal ramifications.

Updates to the Summary of Consumer Rights includes information about fraud alerts and security freezes. Fraud alerts have now been extended from 90 days to 365 days that reporting agencies should list in the consumers file. This updated disclosure alerts organizations that the consumer may have been exposed to identify theft.

The National Security Freeze allows consumers to obtain a security freeze which makes it more difficult for identify thieves to open an account. This also restricts lenders from securing a consumer’s credit report. Consumer companies can’t charge any fees or levies to consumers, this stems from a May 2018 decision by Congress.

What does this mean for employers? If you haven’t already updated your forms, you must do that immediately to avoid legal ramifications.