On September 12, 2018, the Consumer Financial Protection Bureau (CFPB) issued an interim final rule updating two model disclosures to reflect changes made to the Fair Credit Reporting Act (FCRA), one of which is the Summary of Your Rights Under the Fair Credit Reporting Act from (“Summary”). The effective date for the updated Summary is Friday, September 21, 2018.
The Summary is required to accompany a pre-adverse action notice. This notice must be given to an applicant, along with the consumer report the employer is relying upon when there is the possibility the employer will make a decision adverse to the individual applicant or employee.
The Summary is also required when an employer is conducting an investigative background check on an applicant. Investigative background checks are distinguished from ordinary background checks which merely confirm dates of employment and job titles. An investigative background check occurs when a background check company conducts personal interviews with information sources, such as references and former employer representatives, who comment on an individual’s performance.
The interim final rule invites comment on these and any other aspects of the CFPB’s model forms to inform any possible further rulemaking. The CFPB is accepting feedback and comments until Monday, November 19, 2018. Notably, the effective date for the new summary is well before the public comments deadline.
The interim final rule is available at: https://www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/summaries-rights-under-fair-credit-reporting-act-regulation-v/
The revised Summary of Consumer Rights is at: https://files.consumerfinance.gov/f/documents/bcfp_consumer-rights-summary_2018-09.docx