Fair Credit Report Act Update
The Consumer Financial Protection Bureau published a new summary of rights under the Fair Credit Reporting Act (FCRA). This version replaces the old summary that was published back in 2018. Employers must update their forms to include the new summary of rights, no later than March 20th, 2024.
Credit reporting agencies, such as credit bureaus, background check providers, and other specialty agencies, are all subject to the Fair Credit Reporting Act. This law provides protections for the information these agencies collect.
Employers are subject to the Fair Credit Reporting Act when they wish to run a background check on prospective employees. They are required to provide prospective employees with the FCRA summary of rights, as part of the required disclosure and authorization process. In addition, this summary needs to be provided again if the employer wishes to take adverse action based on the results of a background check, in the pre- and post-adverse action notices they send to prospective employees.
Employers will want to update any forms they have with the summary of rights as soon as possible, to ensure compliance with the FCRA. The updated summary of rights can be found here.
If you are a Vida HR client, and use our HR services for the onboarding process, please be aware the vendors we partner with for background reporting will be updating this notice on our behalf. If you have other questions, you can reach out to your HR Business Partner for assistance.
Get day-to-day updates on Fair Credit Report Act Update, visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).