BLOG

Employers must provide a copy of the Summary of Your Rights Under the FCRA Notice to consumers at certain points during the hiring and screening process. That document was updated so the new version should be used.

What Is The Summary Of Rights?

The document titled A Summary of Your Rights Under the Fair Credit Reporting Act was created to help consumers learn what information a Consumer Reporting Agency (CRA) has about them in their files and dispute the results of a background check. It also specifies that a consumer may request a “file disclosure”, meaning a copy of all the data a CRA has on file about them, if:

• A person has taken adverse action against you because of information in your credit report;
• You are the victim of identity theft and place a fraud alert in your file;
• Your file contains inaccurate information as a result of fraud;
• You are on public assistance;
• You are unemployed but expect to apply for employment within 60 days.

See the Summary of Rights.

Updates

The Consumer Financial Protection Bureau (CFPB), a U.S. government agency the was created to protect consumers, announced that they made updates to the Summary of Rights Notice. They revised their Summary of Rights document to include current contact information and make a few other minor changes. Organizations are required to start using the new document no later than March 20, 2024.

Backgrounds Online provides the current version of this and other essential documents at no charge to our clients. If you have an account with us, you can find them within your Resource Center.

When The Document Is Used

There are various reasons that the Summary of Right must be given to a consumer. For employers, one notable occasion is when they are considering an adverse action. Before taking an action, businesses must submit a Pre-Adverse letter, a copy of the background check that includes the records which caused them to consider taking action and the Summary of Rights Notice.

After supplying this, employers must give the applicant time to file a dispute. If the organization ends up proceeding with the adverse action, then they must send an Adverse Action notice and a second copy of the Summary of Rights document.

Learn more about the adverse action process.

Compliance Is A Crucial Part Of The Screening Process

When running background checks for employment purposes, organizations must comply with applicable federal, state and local laws. At times, this involves providing consumers with the Summary of Rights and other documents. We recommend consulting with counsel to ensure you are compliant with federal, state and other applicable laws.

If your business needs background check for applicants, volunteers or employees, please contact us. We are available to assist you Monday through Friday from 5am to 6pm PT.