This is a guest post by Dawn Standerwick, Vice President of Business Development for Credential Check Corporation which specializes in employment screening for mid to large size organizations. Read more of Credential Check's HR Solutions Blog here.
As of January 1, 2013, three notices required under the Fair Credit Reporting Act will change. The modifications affect users of employment background checks (employers), consumers and furnishers.
Historically, the Federal Trade Commission (FTC) had oversight for all things related to the Fair Credit Reporting Act (FCRA). As of July 21, 2012, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, H.R. 4173), which transferred rulemaking authority for the FCRA to the Consumer Financial Protection Bureau (CFPB) while the FTC retained supervisory powers.
Specifically what this means for employers is that the CFPB has made modifications to the three notices to ensure that consumers look to the CFPB for information about their rights under the FCRA and no longer to the FTC.
To comply with the new requirements, the following forms must be replaced no later than January 1, 2013.
We are observing an interesting confluence of events that includes added scrutiny within the regulatory framework, increased legislative activity at the local, state and federal levels and increased litigation surrounding the FCRA. In light of the present regulatory and legislative landscape, employers are advised to review current practices within their screening programs to ensure compliance with the law.
Credential Check will continue to monitor these activities and provide updates on this and other legislative concerns that affect human resource professionals. Please direct questions regarding the new forms or requirements under the FCRA to our office at (888) 689-2000 or to firstname.lastname@example.org.
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