Consumer Financial Protection Bureau Publishes Revised Model Disclosure Form for FCRA Compliance

By Collazo, Florentino & Keil LLP

September 17, 2018

Last week, the Consumer Financial Protection Bureau (CFPB) issued a new version of the model disclosure entitled, “A Summary of Your Rights Under the Fair Credit Reporting Act.”  Employers are required to provide this disclosure, or a substantially similar disclosure, to applicants and employees at various points during the background check process. For example, employers are required to provide the disclosure to applicants and employees prior to requesting certain types of background checks and before taking adverse action due to the results of a background check.

The model disclosure was revised due to a new requirement that nationwide consumer reporting agencies provide free security freezes to consumers. The disclosure now includes notice of the right to obtain a security freeze and updated contact information for agencies enforcing FCRA.

Employers must begin using the new model disclosure, or a substantially similar form, starting September 21, 2018. According to the interim final rule issued by the CFPB, employers may also continue to use the old model disclosure form if they distribute an additional disclosure form containing the new information from the new model form at the same time they distribute the old disclosure form.