Numerous
federal, state, and local laws and ordinances change every day, impacting
compliance requirements or best practices related to pre-employment background
screening. Some of the most recent include New EEOC Criminal Check Guidance-individualized
assessments, CORI Law, California Credit Notice/Addendum; Ban the Box and FCRA
Notices.
There has been much talk about most of these changes, but FCRA Notices seem to have avoided the headlines to a large extent. The bottom line is: if your applicants are still being presented with FCRA Notices that were in effect prior to January 1, 2013, then new forms are required. The biggest change to the form is, instead of the document referring to the FTC, the document now refers to the new Consumer Financial Protection Bureau (CFPB)
There has been much talk about most of these changes, but FCRA Notices seem to have avoided the headlines to a large extent. The bottom line is: if your applicants are still being presented with FCRA Notices that were in effect prior to January 1, 2013, then new forms are required. The biggest change to the form is, instead of the document referring to the FTC, the document now refers to the new Consumer Financial Protection Bureau (CFPB)
The story
behind these changes begins when the Federal Trade Commission (FTC) announced an
update last year to the employer-specific requirements of the Fair Credit
Reporting Act (FCRA).
The FCRA of
1970 regulates the collection, assembly and use of consumer report
information. Enacted on October 26,
1970, the law has been amended several times, including two exhaustive
amendments named the Consumer Credit Reporting Reform Act of 1996 and the Fair
and Accurate Credit Transactions Act of 2003.
The FCRA governs the practices of consumer reporting agencies (CRAs)
that collect, compile, and distribute consumer data into reports for the use of
credit grantors, employers, insurance companies, and other entities in making
eligibility decisions affecting consumers.
On July 21,
2011, the CFPB was formed to regulate consumer protection related to financial
products and services. This federal
agency, tasked as the enforcing arm of the FTC as it pertains to the FCRA,
required all employers to update their FCRA notices before January 1, 2013.
The CFPB’s
most recent round of FCRA edits include:
·
The
Summary of Consumer Identity Theft Rights
·
The
Summary of Consumer Rights
·
The
Notice of Furnisher Responsibilities
·
The
Notice of User Responsibilities
The best way
to stay compliant is to have an additional advocate of compliance on your
side. In addition to your legal
department, Aurico will keep you well-informed of the changes regarding pre-employment
screening as we are made aware of it. Aurico
takes compliance seriously and we’ll support you in working out a solution that
meets your compliance requirements.For more specific details on the FCRA updates, click here.
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