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October 25, 2012
Data Facts Helps to Ensure Compliance with New FCRA Forms
By: Data Facts
Effective January 1, 2013, three forms required under the Fair Credit Reporting Act (FCRA) will change. Data Facts, Inc. is one of the first to offer these forms to their customers to ensure compliance with the FCRA.
The Consumer Financial Protection Board (CFPB) recently issued regulations that call for the modification of three forms required by the Fair Credit Reporting Act (FCRA), which Data Facts uses to ensure their customers are using proper screening methods. Although the FTC has been the agency traditionally responsible for interpreting the FCRA, the Dodd-Frank Wall Street Reform and Consumer Protection Act transferred rule making authority for the FCRA to the CFPB. The newly created CFPB is now the agency primarily responsible for interpreting the FCRA.
Specifically, the regulations mandate that the following three forms be modified:
1. Summary of Consumer Rights under the FCRA. The FCRA Summary of Rights form must be included: (1) as an enclosure with the first of the two "adverse action" notices - the "pre-adverse action" notice; and (2) with the disclosures for "investigative consumer reports." For example, consumer reports based on personal interviews (in-depth reference check) conducted by a consumer reporting agency (CRA) such as Data Facts.
2. Notice to Users of Consumer Reports of their Obligations under the FCRA: The FCRA requires that CRAs such as Data Facts provide each user, including their employer clients, with a copy of this notice.
3. Notice to Furnishers of Information of their Obligations under the FCRA: The FCRA required that CRAs such as Data Facts provide this notice to certain furnishers of information in specific situations.
The main difference between the old forms and the new forms is that consumers may now obtain information about their rights under the FCRA from the CFPB, instead of the FTC.
Keeping Data Facts customers informed is a top priority for Johnna Leeds, Compliance Manager. “We want to make sure that all of our customers know about this form change well ahead of time. We do not expect this to be the last modification that is implemented, and we will work closely with our customers to ensure they are fully aware of and compliant with each change as it comes about.”
As the hiring process has received increased legislative and administrative scrutiny in recent months and years, employers can expect FCRA forms will continue to change. Data Facts is committed to supplying up-to-date information to their customers to ensure compliance and best hiring practices.
About Data Facts Inc
For over 23 years, Data Facts has provided business and consumer information that can be trusted and relied on to make sound hiring, lending and other business decisions. Our Clear to Hire package includes background screening, drug testing, electronic I-9s, assessment screening and monitoring services to improve your bottom line! Those wanting more information about Data Facts should visit datafacts.com. Subscribe to our blog at dfempscreening.wordpress.com and follow us on Twitter at dfempscreening.
Phone number: 800-264-4110
Contact: Sara Kellum, Marketing Director
skellum (at) datafacts (dot) com