Changes in Consumer Financial Protection Board (CFPB) Forms
The Consumer Financial Protection Board (CFPB) recently issued regulations that call for the modification of three critical forms required by the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., and which are typically used in the background screening process. The regulations require that employers and affected consumer reporting agencies (CRAs) begin using these new forms by January 1, 2013. In particular, the CFPB has modified three specific forms to make clear that that it (the CFPB) is the agency from which consumers may obtain information about their rights under the FCRA, not the Federal Trade Commission (FTC).
Specifically, the regulations mandate that the following three forms be modified:
Summary of Consumer Rights under the FCRA: This is a standard notice required under the FCRA to be used by CRAs and employers alike. CRAs must provide this form to employers. Employers must provide this form to applicants and employees in a wide variety of situations, such as when the applicant or employee will be subject to an investigative consumer report or when a pre-adverse action notice is sent to an applicant or employee.
Notice to Users of Consumer Reports of their Obligations under the FRCA: The FCRA requires that CRAs provide each user, including their employer clients, with a copy of this notice.
Notice to Furnishers of Information of their Obligations under the FCRA: The FCRA requires that CRAs provide this notice to certain furnishers of information in specific situations.