The new Consumer Financial Protection Board (“CFPBâ€) will be enforcing the Fair Credit Reporting Act (“FCRAâ€). The CFPB have modified previous forms utilized during background checks and are required under the FCRA. The new forms are as follows:
Summary of Your Rights (for Applicants – must be given to an Applicant before conducting a background check)
Remedying the Effects of Identity Theft (for Applicants)
Notice to Users of Consumer Reports (for Employers)
Notice to Furnishers of Information (for CRAs)
These forms must be in place by both employers and consumer reporting agencies (“CRAsâ€) no later than January 1, 2013. The updated version makes it clear that the CFPB is now the agency handling consumer inquiries and complaints. Previously, these issues were handled by the Federal Trade Commission.
The CFPB is working to assist consumers in understanding the terms of their agreements with financial companies. They are attempting to streamline regulations within this industry and streamline the process for Consumer Reporting Agencies. According to CFPB’s website, Congress established the CFPB to protect consumers with the following:
- Carry out Federal consumer financial laws
- Conduct rule-making, supervision and enforcement for Federal consumer financial protection laws
- Restrict unfair, deceptive or abusive acts or practices
- Take consumer complaints
- Promote financial education
- Research consumer behavior
- Monitor Financial markets for new risks to customers
- Enforce laws that outlaw discrimination and other unfair treatment in consumer finance
More information can be found on their website here:Â http://www.consumerfinance.gov/
Should you have any questions about this issue, please don’t hesitate to contact us at 800.436.1969 x101 or erika@cibackgrounds.com.