The Consumer Financial Protection Bureau (CFPB) published an updated version of “A Summary of Your Rights Under the Fair Credit Reporting Act” this April 2023.
Another name for this crucial publication is the “Summary of Consumer Rights.” This update replaces the version published in October 2018. Furthermore, the CFPB provides Spanish and English versions of the Summary of Consumer Rights on its website. Both consumer reporting agencies and employers must give this Summary to employees and applicants to stay in compliance with the Fair Credit Reporting Act (FCRA).
In addition, employers must provide applicants with this Summary any time they give an applicant a pre-adverse action notice. This final rule makes several non-substantive corrections. It also updates the contact information for the CFPB and other Federal agencies found in several regulations. Consumer reporting agencies and employers can find this information in Regulation V, which implements FCRA. They may also find the Federal agency contact information supplied with “A Summary of Your Rights Under the FCRA.”
The CFPB’s final rule also corrected information in the following:
- The Office of the Comptroller of the Currency (OCC);
- The Federal Deposit Insurance Corporation (FDIC);
- The National Credit Union Administration (NCUA);
- The Department of Transportation (DOT);
- The Surface Transportation Board (STB);
- The United States Department of Agriculture, Agricultural Marketing Service (USDA-AMS);
- The United States Small Business Administration (SBA);
- The Securities and Exchange Commission (SEC);
- And the Federal Trade Commission (FTC)
Interested parties can find the changed information in Appendix A of Regulation B. In addition, the CFPB will correct its contact information, which parties may find in Appendix D.
The final rule will take effect on April 19, 2023, and make various non-substantive changes in Regulation V. However, the mandatory compliance date for the amendments to Appendix K to Regulation V will apply later on March 20, 2024, as stated in the final rule. Therefore, employers and CRAs must ensure they update their forms by March 20, 2024. However, because a typo has appeared in the Summary, employers may delay changing their forms to see if the CFPB corrects this mistake.
The most recent update of the notice will supersede the edition that was published in October 2018. The CFPB has verified that the updated version maintains the same file name as before. Versions in both English and Spanish can be found here.
This change is a good example of how employment-related rules and forms frequently change. The best way to make sure your company stays up-to-date with any changes related to background checks is to partner with a background check company that you can trust.