Warning! New CFPB Background Check Forms Required

cfpb background checksThere is a new sheriff in town.  The Consumer Financial Protection Bureau has taken the enforcement reins of the Fair Credit Reporting Act from the Federal Trade Commission. What does that mean for you as a user of consumer reports or background check reports?  Initially, you have to comply with changes in 3 background screening forms.

These reports were changed very little from what you currently have but they remove language related to the FTC and have inserted the CFPB information.  These forms MUST be adopted no later than 01/01/2013.

If you use our ATS “paperless” process, the forms will be automatically updated over the coming weeks.  I would still suggest downloading a hard copy of the forms for your records.

Here are the two forms you must download and use (I know, I mentioned 3 forms above):

The third form, Notice to Furnishers of Information, is only required if you are a vendor that provides consumer information to Safe Hiring Solutions.

If you are not familiar with the first two forms, you should be.

The Notice to Users of Consumers Reports articulates your legal requirements under the federal Fair Credit Reporting Act.  The FCRA has some very specific requirements for organizations that are using a “third party” background screening vendor.

The Summary of Your Rights Under the FCRA is to be provided to your candidates EVERY time you initiate Pre-Adverse Action based “in whole or part” on a background screening report.  The summary educates your candidates about their rights and is intended to provide consumer protection against low quality background checks.

Feel like you need a refresher on the FCRA?  Join us for a free webinar on 12/13/2012 New CFPB Requirements & the FCRA.  Click here to register.