Legal Alert: Employers Must Use Revised FCRA Forms Beginning January 1, 2013
Athens, GA (Nov. 1, 2012) - Steven C. Millwee, CPP (President and CEO, SecurTest, Inc.)Executive Summary: Beginning January 1, 2013, employers must use the revised forms issued by the Consumer Financial Protection Bureau (CFPB) in November to conduct background checks under the Fair Credit Reporting Act (FCRA).
The FCRA imposes requirements on employers and users of background reports, often called consumer reports and investigative consumer reports on employees and applicants.
A consumer report includes a written or oral summary of a person's credit-worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. An investigative consumer report is a consumer report containing information about a person's character, general reputation, personal characteristics, or mode of living that was obtained through personal interviews with neighbors, friends, associates, or others who have knowledge of such information about the consumer. Importantly, criminal records or criminal conviction records are included in the definitions used under the FCRA.
Previously, the Federal Trade Commission (FTC) was solely responsible for interpreting and enforcing the FCRA. In July 2011 the responsibility for interpreting the FCRA was transferred to the Consumer Financial Protection Bureau (CFPB.) The FTC began to share responsibility for enforcement with the CFPB. In November 2012 the CFPB issued revised forms that employers are to use when complying with the FCRA's background check requirements. The revisions to the forms include instructing employees to contact the CFPB or visit its web site to learn more about their rights under the FCRA instead of contacting the FTC. The new forms do not impose additional substantive requirements on employers.
SecurTest sends to its clients updated Consumer Authorization Forms. You can also find the revised forms by clicking on the links provided. SecurTest clients should use the SecurTest form or include the iReviewNow section in a separate form to ensure compliance with the benefits of our patented solution.
The forms that the CFPB has revised are:
These forms are also available at: https://www.federalregister.gov/articles/2012/11/14/2012-27581/fair-credit-reporting-regulation-v-correction#h-14.
The Final Word:
Employers should be prepared to use the new forms beginning on January 1, 2013. If you have any questions regarding this Alert or other FCRA requirements, please contact your legal counsel or call SecurTest at (800) 445-8001. Clients should contact SecurTest at compliance@securtest.com to ensure the latest SecurTest / iReviewNow Authorization form is being used.
Frequently Asked Questions
Q. Do we have to use the language required by the FCRA / CFPB, as we do not check credit?
A. Yes, the mandates are very specific.
Q. Why must we use words, such as credit-worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living when we are only checking criminal convictions?
A. The FCRA has used this language for decades and requires it to be used in the authorization. Member, Professional Background Screening Association, formerly NAPBS
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