Published April 20, 2023
New Background Check Form Provides Opportunity for Fresh Look at Your FCRA Protocols
The Consumer Financial Protection Bureau (CFPB) has released a revised and updated “Summary of Your Rights Under the Fair Credit Reporting Act” notice. This notice is an important part of the compliance protocol for entities conducting background check screening (e.g., criminal history, MVRs, etc.) through the use of third-party consumer reporting agencies. As a reminder, the Fair Credit Reporting Act (FCRA) requires that this notice be provided to individuals as part of the adverse action notice protocol.
The final rule for the use of this new notice is set to take effect on April 19, 2023. However, the CFPB has provided a grace period for mandatory compliance until March 20, 2024. Nevertheless, we recommend that entities obtain and begin using the updated notice as soon as possible. The new notice can be obtained here.
As class action attacks continue in this area, this is a good time to audit your FCRA compliance protocol and make any necessary adjustments. Such a review should include the following considerations:
- Are you using a standalone disclosure and authorization form?
- Does your disclosure form contain extraneous information that could invalidate the disclosure being made?
- Are you providing qualifying remote transportation applicants (those applying electronically) with notice of their rights under Section 1681m(a) of the FCRA?
- Are you using compliant adverse action notices when you take adverse action against applicants or current workers based on information contained in a consumer report?
- Are you providing necessary disclosures required under state law?
For questions related to this or any other Labor & Employment matter, contact Scopelitis Partners David Robinson, Jack Finklea, Don Vogel, Sari Pettinger, and Steve Stanaszak.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
Published April 20, 2023
New Background Check Form Provides Opportunity for Fresh Look at Your FCRA Protocols
The Consumer Financial Protection Bureau (CFPB) has released a revised and updated “Summary of Your Rights Under the Fair Credit Reporting Act” notice. This notice is an important part of the compliance protocol for entities conducting background check screening (e.g., criminal history, MVRs, etc.) through the use of third-party consumer reporting agencies. As a reminder, the Fair Credit Reporting Act (FCRA) requires that this notice be provided to individuals as part of the adverse action notice protocol.
The final rule for the use of this new notice is set to take effect on April 19, 2023. However, the CFPB has provided a grace period for mandatory compliance until March 20, 2024. Nevertheless, we recommend that entities obtain and begin using the updated notice as soon as possible. The new notice can be obtained here.
As class action attacks continue in this area, this is a good time to audit your FCRA compliance protocol and make any necessary adjustments. Such a review should include the following considerations:
- Are you using a standalone disclosure and authorization form?
- Does your disclosure form contain extraneous information that could invalidate the disclosure being made?
- Are you providing qualifying remote transportation applicants (those applying electronically) with notice of their rights under Section 1681m(a) of the FCRA?
- Are you using compliant adverse action notices when you take adverse action against applicants or current workers based on information contained in a consumer report?
- Are you providing necessary disclosures required under state law?
For questions related to this or any other Labor & Employment matter, contact Scopelitis Partners David Robinson, Jack Finklea, Don Vogel, Sari Pettinger, and Steve Stanaszak.
News from Scopelitis is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.
