Begin Using the Updated FCRA Notice Now

As we discussed in our August 2018 E-Update, the Fair Credit Report Act (FCRA) was revised to require new language be included in the mandatory notice, “A Summary of Your Rights Under the Fair Credit Reporting Act,” and the Consumer Financial Protection Bureau (CFPB) has now issued an interim final rule containing the revised notice, which employers should begin using immediately.

Under FCRA, if employers use a third-party provider to conduct a background check (i.e. consumer report), there are certain required notices and communications. In particular, if the employer is going to take adverse employment action – such as declining to hire the applicant – based on the report, it must provide to the applicant a copy of “A Summary of Your Rights Under the Fair Credit Reporting Act,” along with notice of the intent to take adverse action and a copy of the report.