On March 24, 2023, the Consumer Financial Protection Bureau (CFPB) released an updated version of their notice, “A Summary of Your Rights Under the Fair Credit Reporting Act” (the “Updated Notice”). Employers who conduct background or credit checks on employees or job applicants are required to provide the Updated Notice under FCRA. The Updated Notice provides employees or applicants with a summary of their rights, including:
• The right to know if something in their file has been used against them: If information that is gathered from a background or credit check leads or contributes to an adverse action against the employee or applicant, they have a right to know. In these cases, employers should provide a pre-adverse action notice that includes the Updated Notice and a copy of the consumer report.
• The right to dispute incomplete or inaccurate information: If the employee or applicant identifies incorrect or incomplete information in the consumer report, they have a right to report it to the consumer reporting agency, which must investigate the disputed information and correct any inaccuracies or unverifiable information.
• The right to limit access to their file and reports: Consumer reporting agencies may only release information to those with a valid need and employees or applicants must give consent for reports to be provided to employers. Employers should use a compliant consent form when requesting background checks.
While the Updated Notice only provides non-substantive changes, such as formatting corrections and updated contact information for the CFPB, employers should replace the 2018 version of the notice with the updated version. CFPB has instituted a grace period until March 20, 2024, for mandatory compliance, but recommends that employers begin using the Updated Notice as soon as possible to get ahead of the deadline and ensure employees and applicants are provided the correct contact information for relevant agencies. The Updated Notice is available in both English and Spanish on the official CFPB website.
If you have questions about the end of the Updated Notice or your background check practices, please reach out to any member of Gardner Skelton’s healthcare team.