The Consumer Financial Protection Bureau (CFPB) has issued changes to the notices required by the Fair Credit Reporting Act (FCRA). The changes simply direct consumers to the CFPB instead of the Federal Trade Commission (FTC) for more information and there aren’t any other changes to the content or spirit of the notices. Please note that you can begin using the new form at any time, and your current form is also acceptable until January 1, 2013. The forms MUST be updated by January 1, 2013.
The notices that have changed are listed below. You can view the forms by clicking on the form title and they are available on Corporate Screening’s Resources page, www.corporatescreening.com/resources/overview, located at the bottom of the page under the header “Forms.”
A Summary of Your Rights under the Fair Credit Reporting Act
This notice is attached to all consumer reports completed by Corporate Screening and we will be updating our forms. Please note, if you supply your own copy to your applicants, you must update this form.
Notice to Users of Consumer Reports: Obligations of Users Under the FCRA
This notice summarizes the obligations to you as a user of consumer reports supplied by Corporate Screening. While the content of this notice hasn’t changed besides referencing CFPB, this may be a good time for your organization to review its obligations as a user of consumer reports.
Notice to Furnishers of Information of their Obligations under the FCRA
This notice does not specifically affect you as a client of Corporate Screening, however it may affect you as a furnisher of information to Credit Reporting Agencies (CRAs), especially if you are in the banking or credit industry.
About the Consumer Financial Protection Board (CFPB)
The CFPB was founded a result of the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act that was signed into law July 21, 2010. The bureau began operation July 21, 2011. “The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.” (http://www.consumerfinance.gov/the-bureau/)
The CFPB does not specifically supervise background checks, however they can exercise rulemaking and enforcement over the FCRA.
While this is the first change to affect background checks from the CFPB, we do not expect it to be the last as the bureau takes over responsibilities formerly held by the Federal Trade Commission.
As usual, Corporate Screening will continue to monitor events, provide you with reminders as the date draws near and keep you updated with any new information.