The Consumer Financial Protection Bureau (CFPB) updated three forms that are required by the Fair Credit Reporting Act (FCRA). As a result of the passage of the Dodd-Frank Act, the CFPB now has rulemaking authority under the FCRA. To reflect this change, the CFPB is updating forms to substitute the CFPB for the Federal Trade Commission (FTC) as the point of contact for questions concerning consumers’ rights under the FCRA. Employers and consumer reporting agencies (CRAs) must begin using the updated forms by Jan. 1, 2013. The notices that have been updated are listed below.
(1) Summary of Consumer Rights
Employers who use consumer reports to make employment decisions—such as whether to hire, reassign or terminate current or prospective employees—are required to issue individuals a Summary of Consumer Rights before taking any adverse employment action.
(2) Notice of Furnisher Responsibilities
CRAs are required to provide a Notice of Furnisher Responsibilities to data furnishers. The notice details FCRA obligations imposed upon those who furnish data to a CRA.
(3) Notice of User Responsibilities
CRAs must provide a Notice of User Responsibilities to users of consumer reports. The notice specifies users’ obligations under the FCRA.
Although the duties of employers, furnishers, and users under the FCRA have not significantly changed since the CFPB assumed primary enforcement and rulemaking authority, ACA continues to monitor CFPB rulemaking for any potential changes that may affect members of the industry.