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Friday, September 28, 2018

The NEW Fair Credit Reporting Act (FCRA) Summary of Rights Form is Here!

If your company uses a third-party vendor to conduct background checks on prospective employees, there is a new model for the “A Summary of Your Rights Under the Fair Credit Reporting Act” notice.
Q: When should you start using it?
A: NOW. The Consumer Financial Protection Bureau (CFPB) is responsible for enforcing certain aspects of the FCRA, and published a new model notice titled “A Summary of Your Rights Under the Fair Credit Reporting Act” on September 21, 2018.
The Fair Credit Reporting Act (FCRA) establishes strict procedures that employers must follow when obtaining background check reports on applicants or employees (“consumers”) from a third party “consumer reporting agency.” The FCRA requires employers to provide written disclosures to and seek affirmative consent from applicants and employees before procuring these types of background check reports.
Q: What about employees who I intend not to hire?
A: The FCRA also imposes requirements on employers to provide notice to applicants and employees whom the employer intends to not hire, terminate, or demote based upon the results of a background check report. In complying with these notice requirements, employers are required to give applicants and employees a description of their rights under the FCRA. Many employers use the “Summary of Your Rights Under the FCRA” to comply with the FCRA and give “consumers” notice of their rights when a background check report is requested.
Q: When did Congress adopt the new procedure?
A: Earlier this year, Congress adopted legislation called the Economic Growth, Regulatory Relief, and Consumer Protection Act. This law requires nationwide consumer reporting agencies to provide “national security freezes” free of charge to consumers, which restricts prospective lenders from obtaining access to a consumer’s credit report, thereby making it harder for identity thieves to open accounts in the consumer’s name. The newly enacted law requires that whenever an applicant or employee is provided a summary of their rights under the FCRA, they must also be informed of the new right to a security freeze.
Q: When was the new FCRA Summary Form Released?
A: Earlier this month, the CFPB released a new model “A Summary of Your Rights Under the Fair Credit Reporting Act” notice, which incorporates information about consumers’ right to a security freeze. The new form can be found at Since this new form went into effect on September 21, 2018, employers should begin utilizing the new form immediately.
Follow this link to access the new FCRA Summary of Rights form!
Tommy Eden is a partner working out of the Constangy, Brooks, Smith & Prophete, LLP office in Opelika, AL can be contacted at or 334-246-2901. Link to full case at