Background checks: January 1, 2013 deadline for new Fair Credit Reporting Act (FCRA) notices

Iowa Employment & Labor Law Dickinson Law Firm Des Moines Iowa

Posted on 09/14/2012 at 03:53 PM by The Newsroom

As of January 1, 2013, employers who conduct criminal background checks on their applicants and employees will need to ensure they are using an updated version of the FCRA's General Summary of Consumer Rights form. The updated model form contains a few updates that reflect changes to federal government agency responsibilities. The updated model form can be found at Appendix K of 12 C.F.R. Part 1022 (Regulation V), which can be accessed here. The changes came about because of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which transferred rulingmaking authority for many consumer financial protection laws from various federal agencies to the Bureau of Consumer Financial Protection (BCFP). Among the transfers was rulemaking authority for most of the provisions of the Fair Credit Reporting Act (FCRA), which was formerly the responsibility of the Federal Trade Commission. Pursuant to the transfer, the BCFP has published an interim final rule that mirrors the former FCRA regulations, but includes technical and conforming changes to reflect the transfer of authority. The interim final rule does not make substantive changes to the existing FCRA regulation, but moves the regulations from their former locations at 16 C.F.R. Parts 603, 610, 611, 613, 614, 642, and 698 to 12 C.F.R. Part 1022. As a reminder, the FCRA imposes requirements on employers who obtain “consumer reports” (i.e. background checks) from credit reporting agencies (CRAs). The General Summary of Consumer Rights form must be provided to the subject of a consumer report in two instances: (1) along with a “pre-adverse action” notice; and (2) along with disclosure notices when running any “investigative consumer report” (i.e. reports based on personal interviews conducted by a CRA). In addition, it’s a good idea to include the General Summary of Consumer Rights form with “adverse action” notices, too.  

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