Consumer Financial Protection Bureau mandates new FCRA forms

 making a change to three notices required by the Fair Credit Reporting Act, effective January 1, 2013. The change directs consumers, furnishers and users of employee background checks to the CFPB instead of the Federal Trade Commission (FTC), and are part of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Pub.L. 111-203, H.R. 4173) that President Barack Obama signed into law on July 21, 2010. While the CFPB does not have supervisory authority over background checks, it does have rule making and enforcement powers over the FCRA. CFPB has modified the following forms: Summary of Consumer Rights under the FCRA – This is the standard notice to be used by Credit Reporting Agencies (CRAs) and employers.  CRAs must provide this form to employers, and employers must in turn provide this form to applicants and employees when such individuals will be subject to a consumer report or when a pre-adverse action notice is sent to the applicant or employee. Notice to Users of Consumer Reports of their Obligations under the FCRA—The FCRA requires that CRAs provide employer clients or users 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. The main difference between the old forms and the new forms is informing consumers that they may now obtain information about their rights under the FCRA from the CFPB, instead of the FTC. To comply with the new law, employers and CRA’s will need to stop using the old forms/notices by the start of 2013. For more information, or if you have any questions, you can contact us here.  ]]>