FCRA Enforcement ad Interpretation Responsibility Shifting from FTC to CFPB

Beginning January 1, 2013, the responsibility of interpreting and enforcing requirements under the FCRA will shift from the Federal Trade Commission (FTC) to the Consumer Financial Protection Board (CFPB).

The following forms will be required to be modified by that date to comply with new regulations set forth by the Consumer Financial Protection Board (CFPB):

1. Fair Credit Reporting Act (FCRA) Summary of Rights: This is a standard notice provided to subjects of background screening reports before the process (issued by the employer) and after the process with the copy of their report when requested (provided by the Background Screening Company) detailing the consumer’s rights under the FCRA. Additional situations for issuance of this document include when a pre-adverse action notice is sent by the employer to an applicant or employee. A-Check’s report generated by A-Check will contain the updated FCRA Summary of rights on or before the deadline of January 1, 2013.
2. Notice to Users of Consumer Reports of their Obligations under the FCRA: This is the document provided to each individual user of background screening reports by the background screening company outlining the guidelines for the compliant use of background screening reports. The updated notice will be posted on the ACD login page.
3. Notice to Furnishers of Information of their Obligations under the FCRA: This document is provided to researchers and other types of information brokers by the background screening companies in specific situations. This notice will be provided individually to A-Check suppliers.

Since the inception of Background Screening, the Federal Trade Commission has been the agency responsible for interpreting the FCRA, however the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, H.R. 4173), which was signed into law by President Obama on July 21, 2010, transferred rulemaking authority for the FCRA to the CFPB. The newly created CFPB has now become the agency primarily responsible for interpreting the FCRA.

A-Check America is currently developing our strategy to comply with this new regulation well before the January 1, 2013 deadline.  A-Check Documents will be revised and distributed to each our clients in a timely manner to ensure their own compliance.  In the meantime, if you have any questions, please feel free to contact our Compliance Department 877-345-2021 or by email at compliance@acheckamerica.com.

For a quick read from Labor Attorneys at Seyfarth Shaw detailing the effect of this change, please read the One Minute Memo – New FCRA Forms will be Required by January 1, 2013 (PDF) by Pamela Q. Devata and Natascha B. Riesco.