In November 2012, the Consumer Financial Protection Bureau (CFPB) announced in the Federal Register corrections to typographical and technical errors in the earlier versions of three new essential CFPB forms required by the Fair Credit Reporting Act (FCRA) in the background screening process starting January 1, 2013. These forms include ‘A Summary of Your Rights Under the Fair Credit Reporting Act,’ ‘NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA,’ and ‘NOTICE TO FURNISHERS OF INFORMATION: OBLIGATIONS OF FURNISHERS UNDER THE FCRA.’ The CFPB announcement is available at https://www.federalregister.gov/articles/2012/11/14/2012-27581/fair-credit-reporting-regulation-v-correction. The summary of the CFPB announcement reads as follows: “Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and the Fair Credit Reporting Act (FCRA), as amended, the Bureau of Consumer Financial Protection (Bureau) published for public comment an interim final rule establishing a new Regulation V (Fair Credit Reporting) on December 21, 2011. This document corrects typographical and other technical errors in Appendices I, K, M, and N of the interim final rule, which contain model forms.” These corrections are effective November 14, 2012. For more information about the CFPB, visit http://www.consumerfinance.gov/learnmore. The new CFPB notices were first reported in the ESR News blog ‘Background Screening Firms must Modify Forms Mandated by Fair Credit Reporting Act by January 1 2013’ posted August 9, 2012 by Attorney Les Rosen, Founder and CEO of background check firm Employment Screening Resources (ESR). Rosen reported that the forms were changed to reflect that consumers could obtain information about their rights under the FCRA from the CFPB instead of the Federal Trade Commission (FTC). The three forms currently in use until January 1, 2013 indicate the FTC is the agency consumers can contact with questions. Rosen wrote that each of the three notices is mandated for use in certain situations under the FCRA:
- ‘A Summary of Your Rights Under the Fair Credit Reporting Act’ is a notice that a background screening firm must provide to an employer and employers in turn must provide the notice to applicants in different situations.
- The FCRA also mandates that a background screening firm (known as a Consumer Reporting Agency or “CRA”) must provide each user of its services a ‘NOTICE TO USERS OF CONSUMER REPORTS: OBLIGATIONS OF USERS UNDER THE FCRA.’
- The ‘NOTICE TO FURNISHERS OF INFORMATION: OBLIGATIONS OF FURNISHERS UNDER THE FCRA’ is aimed at certain furnishers of information to CRAs and must be provided in prescribed situations such as a re-investigation where the consumer disputes the report or in a situation involving identity theft.