CFPB Final Rule Amends Federal FCRA Summary of Rights
The Consumer Financial Protection Bureau (CFPB) has updated the Federal Fair Credit Report Act (FCRA) Summary of Rights (“Summary”)[1] for the first time since 2018. The final rule (“Rule”) makes only non-substantive corrections and updates, including updated contact information and chapter headings. The Rule will be effective April 19, 2023, but the mandatory compliance date is March 20, 2024.
Under the FCRA, employers who use consumer reporting agencies (CRAs) to conduct background checks and provide reports may be required to provide candidates for employment with the current Summary.
The Summary provides the candidates with information regarding their rights, including:
the candidate must be told if information in their file has been used against them, and who provided the information;
the right to know what information is contained within their file;
the right to ask for a credit score;
the right to dispute inaccurate or incomplete information;
CRAs must correct or delete inaccurate, incomplete, or unverifiable information;
CRAs may not report outdated, negative information;
CRAs may only provide a candidates information to people with a valid need;
a candidate must consent for reports to be provided to employers;
the right to limit “prescreened” offers of credit and insurance; and
the right to seek damages from violators.
The Summary also provides contact information that a candidate may use to inquire about their federal rights.
Although these updates are non-substantive, employers should view this as a reminder to review their internal processes, procedures, and documentation and monitor the CFPB’s website periodically to ensure that they remain up-to-date with the FCRA’s most recent requirements.
[1] https://files.consumerfinance.gov/f/201504_cfpb_summary_your-rights-under-fcra.pdf